Pay cash for an ok car or take out loan for a better one?

[Aniyan]

Hello - in a bit of a dilemma and would appreciate any opinions:

I need to replace my car in the next couple of months.

I have a bit of money set aside, so I can take the easy option of paying about £1500 cash for a relative's car which meets my (pretty limited) requirements, is mechanically sound and will last for a few years (I have no worries about buying from this relative so no pitfalls there).

Or, I can use the cash, plus take out a smallish loan (I'm thinking about £2000) and look for something newer that will last longer. Searching for the right car from a reputable source will be a hassle now but I suppose it will save me time and energy in the long run. I'm debt-free at the moment so should be able to borrow the money, but I'm not sure I should if I don't really need to - but I will end up with a better car.

So - what do people recommend?
TIA

Have you checked what deals are available to you for a loan? Also how long you would take it out over? Would it be easy enough to meet repayments, even if car went kaput - unlikely, but hey, I'm a pessimist! {smile]

I'd get the loan from my bank - over 2 years and payments would be manageable, as long as the car didn't die & I had to get another one as well!

I think that last scenario is unlikely as I'm after a boringly reliable small family car but I'd have to bear it in mind.

I suppose I'm wondering whether buying the relative's car would end up costing me more as it is older than any car I'd buy with loan money & may need more nursing through MOTs etc.

Yes, that's the thing!