Hey folks,
I am hoping to buy a car in the near future and am intending to spend less than €7k on it [incl. insurance]. I currently have savings amounting to c. €4,500 [RaboDirect] and an SSIA which is due for maturation Jul-06 and is due to yield about €5,500 once the relevant deductions have been made.
However, my partner and I are intending to buy a house in the next year so I'm reluctant to use my savings for the car as it has taken me about 5 years to get them to where they're at and I feel we'll need them [and a whole lot more besides!] worse to cover the costs associated with buying a home.
The CU in work have quoted me 7.2% APR on a €6k loan, the stipulation seems to be that I would have about €500 in savings with them and save €4 per month for the duration of the loan.
Am I just being foolish to be thinking about taking out a loan for the full amount rather than the shortfall between my savings and the car price?
Any advice gratefully received
I am hoping to buy a car in the near future and am intending to spend less than €7k on it [incl. insurance]. I currently have savings amounting to c. €4,500 [RaboDirect] and an SSIA which is due for maturation Jul-06 and is due to yield about €5,500 once the relevant deductions have been made.
However, my partner and I are intending to buy a house in the next year so I'm reluctant to use my savings for the car as it has taken me about 5 years to get them to where they're at and I feel we'll need them [and a whole lot more besides!] worse to cover the costs associated with buying a home.
The CU in work have quoted me 7.2% APR on a €6k loan, the stipulation seems to be that I would have about €500 in savings with them and save €4 per month for the duration of the loan.
Am I just being foolish to be thinking about taking out a loan for the full amount rather than the shortfall between my savings and the car price?
Any advice gratefully received