Loan or Savings

[Pugger]

I am looking to buy a car worth $17000. I currently have savings of $15000 in ING and could get together the other $2000. I am saving for a deposit so am wondering should I get a loan or use my savings?

[Loosehead]

It is usually financially better to not borrow unless you have to. Ok you may well earn interest in the savings but that will be taxed (In UK anyway, probably also in the US). At the same time if you borrow you will be paying interest almost certainly at a higher rate than the savings and also that is not tax deductable. On balance if you don't have to borrow then don't!