pay cash or get a loan???

[thaiaddict]

Just got 12,000 from ssia, and would like to keep this towards saving for a deposit for a house. Any advice on wether i should keep on saving this lump sum as i need to get a car for work reasons. Am going to spend about 5 thousand on the motor ( do want a decent one). Was going to just pay cash for this but is it worth taking on a loan for it and hold on to the lump sum and keep adding to it??

 

[Wonderwoman]

You will be paying at least 7/8/9 % for the privilege of using someone elses money to pay for the car while your own money will sit and earn max of 4.5% Use your own cash, buy the car and then add back to your own lump sum the amount you can afford. That is what I would do.

 

[Martinslan]

If you have even a small car loan it will effect the amount you will be able to borrow for you house purchase. Agree with Wonderwoman pay cash and as little as you can..Good 2nd cars out, so do the search...

good luck

 

[thaiaddict]

Cheers guys, think your right to buy it myself outright...seems logical...thnxs..