Irish Independant reckons it is better to borrow to buy a car instead of using SSIA !

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Irish Independant reckons it is better to borrow to buy a car instead of using SSIA !

I read this in the motoring supplement of todays Independant and I am just wondering I am missing something in the following piece ?

"Instead of blowing your SSIA on a new motor, finance experts advise that you should pay for it with a low-cost loan or a competitive hire purchase deal"

The "competitive" low-cost loan mentioned has a rate of 7.2%.

Am I correct in thinking that the writer of the piece reckons I should leave my SSIA in the bank and go out get a loan at 7.2% to buy a new car ?
 
Re: Irish Independant reckons it is better to borrow to buy a car instead of using SS

Well consider that if you're buying a new car, you're purchasing a massively depreciating liability, and giving a huge chunk of hard earned money to the taxman.

The whole SSIA/loan argument becomes less significant.
 
split half between SSIA and a small loan.that will cost you less interest and not blowing all the SSIA same time
 
yes. for example a 2006 car worth 20k, and the same 2002 (4 yr old) model will only worth 8k, you can work out how much it dropped, 12k / 4yr
that is 3 grand depreciation per year. surely this is up to the person that willing to pay for a new car.
 
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