Hello,
I have a car loan with the credit union for the last 2 years. There is 2.5K outstanding on the loan at a very good rate (6.5%). I pay e20 a week towards the loan and e5 goes to a savings account (e25 in total).
So, I bought a new car (traded my old one in), and the balance is e12,500.
I have 13K in savings for a car. I am confused what to do.
I could pay in cash, and just have the first loan.
Or
I could get another loan for 7K from the credit union (consolidate the first one). The rate has gone up to 10.5% for new loans. And pay 5.5K of my own money (which would leave me still with 7.5K in the bank in case I needed it for anything). The 7K loan would cost me e35 a week over 5 years.
Any advice on what is the best thing to do? Or any other options?
Thanks
I have a car loan with the credit union for the last 2 years. There is 2.5K outstanding on the loan at a very good rate (6.5%). I pay e20 a week towards the loan and e5 goes to a savings account (e25 in total).
So, I bought a new car (traded my old one in), and the balance is e12,500.
I have 13K in savings for a car. I am confused what to do.
I could pay in cash, and just have the first loan.
Or
I could get another loan for 7K from the credit union (consolidate the first one). The rate has gone up to 10.5% for new loans. And pay 5.5K of my own money (which would leave me still with 7.5K in the bank in case I needed it for anything). The 7K loan would cost me e35 a week over 5 years.
Any advice on what is the best thing to do? Or any other options?
Thanks