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Loan or savings to buy car

Popeye84 · 2025-08-22 10:47:00

Hello all, Looking to purchase a new car but don’t know whether to use savings or get a loan. The money is currently in a Santander 123 account which I believe is paying 2% interest. The car/loan amount is £25k. I can get a loan with Nationwide or Santander at 5.9%. I am of the thinking that paying cash would be better…

Comments

Popeye84 Posts: 44 Forumite

29 August at 10:36AM

Thanks for the responses all.

I will be using the savings to buy the car.
Following this thread I will be looking at moving current account and getting the savings to work better for me.

Will head to another forum to for tips on investing the £200k.

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