Borrowing money
Now you have thought about the pros and cons yourself, here are some other considerations to help you reach a decision.
Time
Beth could continue to save for a car and purchase a bike to make her travelling easier in the short term. She could afford to do this from the money she has already saved.
Requirements
There are no requirements with this option. However, if Beth chooses to buy a bike instead, she should consider having it insured against theft or accidental damage.
Interest
Beth could pay for a bike from her savings. However, this would reduce the total of her overall savings, so she would earn less interest as a result.
Risk
The journey would involve steep hills and very busy roads, so she would need to be very careful, especially when returning home at night, tired after work. In the winter months, the weather might prevent Beth from cycling at all – this would mean using public transport and taxis, which she’s trying to avoid.
Further points to consider
Beth may find that, despite her best intentions, she still has to pay for public transport or taxis to get her to and from work. How can she predict or plan for these costs?