Back to the OP's initial question, we got a loan from GE at 12% a couple of years ago for $6500 on a 2 year term. Like the OP was considering it was for a topup on top of money set aside for a car. We choose to do it this way and pay the bit extra in interest for 2 reasons: 1. We didn't want to replace one cheap car with another and than have to consider doing it again in 2-3 years and 2. We didn't want to raid our savings as we have that set aside to allow my wife to stay home for as long as possible when we decide to expand the family.
OP if you want to get a loan to topup your spending money than do it. It's your guys money and you can do what you want with it. We feel we made the right call for us at the time and got a great modern car that will well outlast anything we could have afforded otherwise. GE money were surprisingly good to deal with (although it did take a week or so to get it all sorted). We negotiated a rate that we were happy with and made it clear we would walk away if we weren't happy. This got us a 12% rate (or more accurately 11.99%) which we were happy with and no establishment or admin fees for the life of the loan. We also negotiated no penalty for early pay back and paid the loan a lot quicker than the 2 year term. All up we probably paid around $600-700 in interest which was worth it to not raid our long term savings account (which earned a comparable amount in interest during that time anyway).
Where are you getting 12% on savings? I want some of that action
More like 16% considering income tax. Assuming that savings account is legit, of course.
It happened that the account had a large sum of money (in the 10's of thousands).