We have a 20 year, €300k mortgage.
We have just received a €30k windfall from a relative at a time when we are thinking of trading up our car for a newer model.
Our intention is to buy a 3/4 year old car and keep it for 4/5 years.
Does it make better sense to use the windfall to purchase the car, or should we take out a 4/5 year car loan and put the €30k towards our mortgage?
Obviously, the car loan route would entail monthly outgoings that we don't currently have (albeit offset a little bit by our reduced mortgage repayments). On the other hand, if we use the cash to buy a car, wouldn't we, in a sense, be paying for it over 20 years?
I'd like to know what the most financially expedient route is, regardless of the pain involved.
TIA.
Dinarius.
We have just received a €30k windfall from a relative at a time when we are thinking of trading up our car for a newer model.
Our intention is to buy a 3/4 year old car and keep it for 4/5 years.
Does it make better sense to use the windfall to purchase the car, or should we take out a 4/5 year car loan and put the €30k towards our mortgage?
Obviously, the car loan route would entail monthly outgoings that we don't currently have (albeit offset a little bit by our reduced mortgage repayments). On the other hand, if we use the cash to buy a car, wouldn't we, in a sense, be paying for it over 20 years?
I'd like to know what the most financially expedient route is, regardless of the pain involved.
TIA.
Dinarius.