A very simple question: Are there any advantages to borrowing for the purposes of buying a car as opposed to using savings - total to be borrowed =20,000
A very simple question: Are there any advantages to borrowing for the purposes of buying a car as opposed to using savings - total to be borrowed =20,000
I've amended the title of this thread for clarity.
As RainyDay says, there's no advantage in borrowing (at what, 9% or 10%?) rather than using savings which are earning much lower interest — unless the savings are somehow 'tied up' in such a way that you would be heavily penalised for accessing them.
if you have the €20,000 to spare use it to purchase the motor. Find out how much the repayments are for a loan from wherever you intend to borrow from, then put that amount into an account each month etc . at the end of the 5 years ( or whenever) you will hve the orgiginal €20,000 and then some. easier said than done but worth a try
Buy as much car as you can afford -- without borrowing, if possible. If you can't afford a new car, maybe spend your savings on a used car? If your savings can't cover a good used car, borrow the difference and still buy a good used car.
Car loans are among the most profitable products the bank offers.
I've never borrowed to buy a car, and never will. It's a mug's game, if you ask me.