Buying new car use savings or get a loan

[seanied]

I am changing my car next week and i am looking for peoples thoughts.

I am thinking of getting a loan for 14k use 3k savings to pay for 17k car.
I have 10k in savings at 5%APR
The load is with Ulster bank at 6.3%APR fixed, ufirst gold account.
Should i put the 10k saving towards the car instead of getting a loan???

I like the idea of having the savings there for a rainy day, but they would probably build up again fairly quickly if i wasn't paying off a loan.

What do ye all think??

 

[pc7]

personally i'd use the savings, stir clear of the loan, as you say you can easily save up again with no loan to pay, you would own the car (an asset), also work out how much you'd end up paying back if you did get a loan it would work out a lot more than the price of the car.

 

[NHG]

I agree with the above poster - your own money is the cheapest! Just make sure to save what the loan repayment would be every month and your savings will start to rebuild again.