The Senior Wonder Years!

kempiejon

Organgrinder said:

Probably the only thing I'd have done differently (unless your loan deal has a rate below your ISA rate), is use savings to pay for the car and then replenish. But..... Sometimes loans make perfect sense when you know you may need quick access to capital.

But, enjoy the car. Life's pleasures should be enjoyed!

@[Deleted User] Congrats, spending money can be difficult from a mindset of being prudent with cash and a car is generally a big wrench. as above get some pleasure from it if that's your thing.
I quite understand the idea of a loan over taking money out the ISA as all ISA money is protected from tax. It is also useful to spread that big purchase over a few years - though you've already decided to reduce that term. I like premium bonds with a max holding it's fun to bank a prize most months

[Deleted User]

I have never found it difficult to spend money lol! The newer car is enjoyable to drive and I actually feel safer with it’s all improved warning systems. 

I suppose one of my gripes with a few MSE forum members is how they agonise over spending money when they  have the means to do so without it being a problem. It is like having the most money possible and spending the least money possible has become an unhealthy obsession.

As I have said before, I am content to have enough to live a reasonable lifestyle. In my 60s being healthy and appreciating what I have is more important to me than maximising financial returns.

mark55man

Well done Baron - wishing you many years of happy and feature rich motoring.  And many years of doing what you want with your money

Yankee24

I think it’s great.   I drive a 17 year old Yaris.  (Love that car!) but take long an exotic holidays where we scrimp on nothing.  I love your way of thinking!   

[Deleted User]

I have decided to pay off the car loan after the first payment has been taken at the beginning of September. I have already paid £350 off the original amount.😇 By doing so I will save myself over £900 of interest. The loan I have has no charges for early repayment.

This very early repayment will reduce my savings to the lowest level in years, but is doable. My reserve fund and Premium Bonds remain intact. I also have an amount in an online bond (under £3000) that matures next June which will then be transferred to savings. So I will not be destitute lol!

The loan enabled me to purchase the car I wanted before it was sold to someone else! However, I do not feel comfortable having a loan for a 3 year term at this stage of my life. 

I am also going to close my Triple Access Cash ISA and place all my cash savings in just one savings account until next April, when I will review my position and decide which accounts best suit my needs. I know for certain that my total received interest for this financial year will definitely not exceed the £1000 allowance ! 

The savings account is virtually divided into savings pots on my spreadsheet. 

Fortunately my level of pension income will allowance me to live comfortably and replenish my savings over the next year or so.

My finances are now very simplified indeed,  which I am actually pleased about 😀.

The main focus of my posts in the foreseeable future will be on how I rebuild my savings and fill the various pots for spending budgets. I am aiming to put between £1000 and £1200 a month, from October, into the savings account for both purposes. We shall see how it goes 😀🙏 lol.

So by the end of September I will have 3 current accounts (one of which is joint for household bills) my savings account and the online bond which has a few months to run before maturity. This is very different from when I opened this thread lol. Maybe the Premium Bonds will help me top too lol 😂.

cbsexec

Sounds like a good plan 

[Deleted User]

After another rethink, I have changed my mind about paying the car loan off so early! I have decided that I want to keep my Cash ISA. The loan repayments are easily affordable. Instead I will concentrate on making overpayments as and when I am comfortable to do so. I made a good start in August with a £400 overpayment even before the first regular DD payment, which is due to go out in the next few days. I like the idea of the challenge to reduce the term by making overpayments.

SuzeQStan

Sounds good Baron - Allowing a financial product to run is good for credit building as well - I’m toying with getting a interest free mobile phone loan as ever since our mortgage redeemed my (meaningless yes I know) credit score dropped.

 And I can only put that down to having no current running demonstrable regular payments.  Although September marks 6 months since mort finished so am hoping to see an uptick in CS - and will base decision on that.

To all those who will now jump on this saying credit score is meaningless - yes I know thank you however I am allowed to make
my own decisions as anyone else as opined by OP themself.

MarzipanCrumble

I deliberately go for credit every so often - this year I bought a samsung tablet which I could have paid by cc/cash/cheque but did the credit thing of £20 ish / month.  Just want to make sure I am credit worthy if I need it for real.  (No interest credit deal so all good)

[Deleted User]

Although I continue to miss certain aspects of life as a teacher, it is quite nice not to have to rush about this morning getting ready for two days of INSET training at school! Particularly at the moment, as it is pouring with rain and looks gloomy outside. Oh well, I had  better get up and do those exercises lol!