Best value on a personal loan?

dcGT

Hi All,
Apologies if this is posted to the wrong place. Basically I'm looking for car finance and was wondering if anyone knows the best place go in terms of a good interest rate. I was talking to Bank Of Ireland, and apparently, they offer a variable interest rate of 8.25%. Any comments or suggestions would be great!

Cheers,

DC.

daveg

Have a look at the Sunday Tribune's best buy's and you'll see (for a car loan) that Ryanair.com are the cheapest. I didn't expect them to be the cheapest :dunno:

Sleipnir

well if you're looking for car finance then you're not trying for a personal loan right? Personal loans have a higher rate of interest than car loans.

Unison.ie has a personal finance page which shows the interest rates of all the banks but doesn't appear to include the rate for car finance. Maybe they have a motor section there. Or take a look at cbg.ie

Best thing is to ring as many institutions as you can and find out their rates, also your credit union, assuming you're with one.

dcGT

Thanks daveg, I can't seem to find the website for ryanair's loans though. There doesn't seem to be anything on ryanair.com???

Well I plan to buy a car privately, Kananga. So therefore, I have to arrange a loan from a bank/credit union etc. Is there much of a difference between a personal loan and a car loan from banks? I was told that some car dealers provide good finance deals, but that means you have to buy the car from them doesn't it? Please excuse my ignorance on this subject, that's why I'm asking for advice

Cheers,

DC.

BuffyBot

The link on Ryanair.com for loans leads to http://www.123.ie/ryanair/loan.htm

dahamsta

Left-hand side, "Christmas Loans". Ryanair operates via 123.ie, which in turn offers GE services. You'll end up here.

adam

dcGT

Ah yes, found it lads! Thanks!

DC.

Victor

Originally posted by dcGT
Is there much of a difference between a personal loan and a car loan from banks?

There can be, but not necessarily - as the car acan be used for collateral, there is slighly less risk for the bank, however it would likely mean you cwould need comprehensive insurance.

Originally posted by dcGT
I was told that some car dealers provide good finance deals, but that means you have to buy the car from them doesn't it? Please excuse my ignorance on this subject, that's why I'm asking for advice

Be very wary of finance deals from car dealers, most of them require lump sums at either the start or end and/or have prohibitive interest rates for late payments.

spongebob

Originally posted by Victor
Be very wary of finance deals from car dealers, most of them require lump sums at either the start or end and/or have prohibitive interest rates for late payments.

Good advice as always. Bank Variable rate loans are the best as you can overpay if you choose.

8% Variable or so is good at the moment but I expect that the fixed rates will start to drop soon.

M

sixtysix

slightly ot but did anyone see an ad for loans from cornhill insurance which i think is part of the allianz group of companies. i was wondering are they in turn acting as agents for one of the main banks?

dcGT

Cheers for all the advice everyone. I think I'm gonna go for Bank Of Ireland. Seems to be the best all round. Thanks again.

DC.

daveg

Originally posted by dcGT
Cheers for all the advice everyone. I think I'm gonna go for Bank Of Ireland. Seems to be the best all round. Thanks again.

DC.

BOI would be last on my list. Have a look below:

€15,000 CAR LOAN FOR 5 YEARS

Ryanair.com 7.70% €19.91 Variable
One Direct* 7.75%* €19.94* Variable*
Permanent TSB 7.90% €20.10 Fixed & Variable
AIB Bank 8.24% €20.17 Fixed
Bank of Ireland 365 8.70% €20.46 Variable

dcGT

Thanks daveg, I see, well I tried applying for the Ryanair.com loan. They've yet to call back. BOI are offereing variable interest rate of 8%.
e.g. I'm looking for €8500 over 5 years
They said the repayments would be €187.XX per month (including payment protection)

So would there be that much difference with Ryanair.com? I can see the 15,000 has 7.7% interest rate. But I wanted to find out would that rate still apply for a loan of €8500.

Thanks.
DC.

Paddy20

dcGT,

RE: Payment protection included!. Payment protection on a car loan is a Rip-Off. It is an overpriced optional extra, which you really do not need.

Ask or tell your lender that you want a loan 'without' payment protection. You will be surprised at how much you save in monthly charges. Should be declared illegal imho.

In my experience One Direct, which is part of An- Post are excellent. I personally would not touch the Bank of Ireland with a bargepole.

Good luck & Shop around! & Happy motoring.

P.:ninja:

Genghis

Outside chance, but have you got a mortgage with EBS? If you do they offer loans (for any purpose) for 3.75% over whatever term you need. I recently borrowed enough to pay off my other loans over two years, and the interest was buttons.

BTW I also agree with Paddy - loan protection is a rip off, I never take it ('cept for the mortgage, where it is a condition that you do).

dcGT

Thanks for the advice Paddy20. Was going to find out more about this loan protection, what does it actually protect you from?! Also, I tried applying for a loan about 6 years ago and was told that there's less chance of you getting the loan if you don't include the loan protection. Is this still the case? Thanks for the suggestion Genghis, but I don't have a mortgage at the moment

Paddy20

dcGT,

What exactly do you get for paying through the nose for 'payment protection' !, a very good question. My first answer is robbed blind !, and any lending institution including the cost in a quote without you requesting such coverage is as far as I am concerned in breach of 'good practice' for lending institutions, and you are correct that in the past the Banks in particular loved their customers to be given the impression that they would have a better chance of obtaining loan approval if they also opted for payment protection.

However, times have changed. A 'cooling off period' of ten days was introduced giving customers time to think about exactly how much a loan was really going to cost them over the period of the loan, and they no longer were such an easy target for the 'payment protection plan'. This legislation was introduced after the government and the Irish Central Bank had received a number of complaints against financial institutions practically using a form of emotional blackmail on borrowers applying for loans. As for what the actual payment protection plan benefits are to the borrower. It varies, but basically you pay a premium every month so that should you fall ill, become unemployed etc, then the Bank is supposed? to pay your loan monthly repayments for you, for as long as needed.

Without me writing a heavy tome; perhaps you should take your time and study the following links, which should answer all your queries and natural concerns before you take out any loan.

1; www.mabs.ie

2; www.fool.co.uk/

3;www.onedirect.ie

4; www.centralbank.ie

5; www.money.msn.co.uk/default.asp

Try that. I think you will find the experience both enlightening, entertaining and 'Moneysaving!'.

P.:ninja:

BuffyBot

AFAIK You choice to not take loan protection should not predjudice the desicion on whether your application is successful or not

Victor

Payment protection isn't all bad, I had reason to use it recently.

Originally posted by Paddy20
It varies, but basically you pay a premium every month so that should you fall ill, become unemployed etc, then the Bank is supposed? to pay your loan monthly repayments for you, for as long as needed.

Read the fine print - it may only cover payments for a limited period.

dcGT

Cheers everyone, those sites were very useful. Yeah I think the loan protection is only valid for limited time after you become unemployed etc. (a few months or something like that). I called them again and it seems the loan protection works out at about €16.50 per month. Hmmmmmm.

DC.

dcGT

I just applied for a loan with One Direct. It seems that they offer a 'sliding scale' of interest rates based on personal circumstances. For the same €8500 over 5 years they said €239 per month! Basically one direct have a potential interest rate of 7.75% but that can up to 21% BOI still look the best for me so far.

DC.

deRanged

I've just come from meetings in permanent tsb and in BOI. I was talking to loan advisors about car loans - so this info is accurate as of 2 hours ago.

first off - a personal loan will cost more than a car loan. (higher interest rate).

Permanent tsb offer 7.9% apr fixed loans for new cars with balance over 9,000, or 8.9% where the balance is under 9000 or it's a used car. That gives 20.10 or 20.54 per thousand over 5 years.

They also give one years free RAC membership, and 50 euro petrol vouchers.

BOI offer 9% variable, or 8.8% fixed. They don't give any extras that I know of (by which I mean RAC or AA), but they do
have discount schemes e.g. UCC staff members get 1.5% reductions. which is nice

Also - permanent tsb will only give the loan for the exact value of the car - the garage will have to send them an invoice and they'll loan you that amount. BOI will give you a loan for the value of the car plus the first years car tax and insurance.

hope this helps.

dcGT

Thanks for that deRanged, also, I just found out that the company I work for a group discount with BOI...so instead of 8.25% variable, I'm getting 8.00% variable (this is for motorloan). It only make a diffference of about €2 per month, but better in my pocket than theirs!

Cheers.

DC.