should we have kept loan instead of paying it back

[gubby]

We borrowed 10,000 for aib about 2 months ago to buy a car. we have been looking and even went over to england but failed to get the car we wanted. we then decided that, as the money was just sitting in our current account, that we should put it in some better account ie ebs. Anyway I went into the bank yesterday to withdraw the 10k and to cut a long story short on the advice of the guy in the bank we decided to give back the loan. It ment we lost €100 as penelty for paying back loan. Thing is, we still need to buy a car but had decided that maybe we would wait till the new year. The bank assured us we would not have a problem borrowing again in a few weeks or months. I just remebered that the interist rates went up so maybe we should have held on to the money. what do you think??

 

[ClubMan]

on the advice of the guy in the bank

If you want advice on any financial matter then you really should get it from an independent source.

I just remebered that the interist rates went up so maybe we should have held on to the money. what do you think??

Was the loan variable or fixed - what rate?

It doesn't really make sense to borrow €10K and then stick it on deposit since you are most likely losing money.

 

[soy]

It does not matter, you cannot do anything about it now.
You have already paid the early payback fee. You will have to start again in Janurary and will be subject to whatever the prevailing interest rate is at that time.
Lesson learned - not to draw down the loan until you are definite that you are going to buy a car.