Cheapest car loan question

Walker34

Hi,
over the past year I have heard numerous comments about how interest rates are at historic lows and the like. I was shocked tonight when I went to look for a car loan to find that a 15k loan over 3 years is at 11.2% interest in one bank. What is the best way of borrowing for a car. I have the cash to buy it from savings,....would I be better to use that and save the repayments I would have been paying, had I borrowed the money, into a decent rate savings account.?

BuffyBot

The interest rates you hear about being low are generally stuff such as mortgages. Personal lending doesn't always feel the benefit of such reductions.

I would say buy it from cash and save the repayments, personally.

Walker34

Why so, if I pay in cash and save the potential repayments in a saying account, I get to keep the 11.5% rather than the banks.

BuffyBot

Pretty much, yes.

Plus one of the basic rules of personal finance - never get into debt if you can avoid it.

Walker34

Or as an old boy used say to me when I was struggling to pay my rent in the last recession in 83 "Never, a borrower or lender of money be". Now that might have worked in the 50`s.........but at this point in history, GET real!