Getting a car loan

[Gizmo!]

I can get a loan for £x, or a loan for £x+500. The loan for £500 more will cost £439 more to repay.

So more, but not as much more as it is more, IYSWIM.

Do you get the loan for more, or less?

[T84]

Are you going to buy some more crack with that £500?

[EK993]

Depends... what do you need the extra £500 for? Insurance? Petrol? Repairs? Hookers and chop??

[Gizmo!]

EK993 said:

Depends... what do you need the extra £500 for? Insurance? Petrol? Repairs? Hookers and chop??

...big noisy exhaust...

I can always *find* things to do with £500...

[CrammyJay]

what was the question again?

[NorthernBoy]

So you mean that the £500 extra loan is a lower APR?

You could get the bigger loan, put the £500 in a savings account, and at the end of five years be about £60 better off than you'd otherwise be.

Getting extra credit and just spending it, though, is rarely a good move.

[zollburgers]

If x = 1 then I would go the whole hog and get the X + 500 loan. If x = 10 billion, then I probably wouldn't. I might do though, I mean, I'm not ruling it out, but I probably woulnd't take the extra 500.

[Gizmo!]

NorthernBoy said:

So you mean that the £500 extra loan is a lower APR?

Precisely.

I'm very conscious of not over-borrowing (even at the relatively low level) as I'm proud to be debt-free. But, well... if I put it away for a rainy day it's more money than it's costing me, that can't be a bad thing.

Or I could put it on the 2.40 at Epsom.

[CrammyJay]

or you could use it to buy shares in a nigerian gold mine, i heard they pay out big interest