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Banks and Motor Loans

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  • 18-06-2008 9:49pm
    #1
    Ronanom
    Closed Accounts Posts: 407 ✭✭


    A woman came to look at my car t'other day said she would buy it...she just had to get a loan from the bank.

    Turns out that the bank won't give the loan to her cause it's a private deal and they want it to be a garage that she buys off. Is this common practice nowadays?

    She told them originally that she was planning to buy a car in the uk - but that was a deffo no no - however if she paid for the car first and brought it home, then they would give her the loan (!)

    Think the loan is about 15k and there's 3 years manufacturing warranty on my car


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    #2
    Anan1
    Registered Users Posts: 22,815 ✭✭✭✭Anan1


    Sounds like her credit rating's not too hot, TBH.


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    #3
    s14driftking
    Registered Users Posts: 645 ✭✭✭s14driftking


    some banks insist on this for big loans i know when i was starting out on the motor market i got it hard to get my first loan for a private deal


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    #4
    -Chris-
    Closed Accounts Posts: 12,035 ✭✭✭✭-Chris-


    They're probably looking for some sort of legitimate invoice so they can make sure the loan is for the same amount as the car.

    You can't provide that in any meaningful sense, neither can the UK supplier - which is why they'd want the car to be paid for first, so they can see the money come out of the account!


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    #5
    Ronanom
    Closed Accounts Posts: 407 ✭✭Ronanom


    AudiChris wrote: »
    They're probably looking for some sort of legitimate invoice so they can make sure the loan is for the same amount as the car.

    You can't provide that in any meaningful sense, neither can the UK supplier - which is why they'd want the car to be paid for first, so they can see the money come out of the account!

    I suppose, but she was gonna make a draft out to my name


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    #6
    Anan1
    Registered Users Posts: 22,815 ✭✭✭✭Anan1


    Ronanom wrote: »
    I suppose, but she was gonna make a draft out to my name
    You could be her scam buddy for all the bank know.


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    #7
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    It would sound like she was going for some sort of leasing deal with the bank. Typically there's two ways that a leasing deal maybe approved:

    1. On the strength of the customer (i.e the customer pays the garage without interference from the leasing company because the loan approved automatically on the system).
    2. Or by paying the garage directly upon receipt of an invoice.

    The second option would go to an underwriter for approval and that's why she probably was declined.


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    #8
    luckyD
    Closed Accounts Posts: 41 ✭luckyD


    I ran into this problem getting my first car a few years back. Its to do with the rate of a car loan. For example certain lending institutions will provide a cheaper or special rate for car loans than general loans. Lets say 6% apr car loan and 8% general loan. They want to ensure that it is actually is for a car a make the cheque payable to the dealership. Otherwise some sneaky fellow can take a car loan out on the lower apr and make it payable to "joe bloggs". That's why these institutions will only make these type of loans payable to car dealers!:)


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    #9
    copacetic
    Subscribers Posts: 16,587 ✭✭✭✭copacetic


    not sure thats it, I currently have approval for a loan and all I have to do is sign and send it back an money will be in my account. same as last time..


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    #10
    luckyD
    Closed Accounts Posts: 41 ✭luckyD


    copacetic wrote: »
    not sure that's it, I currently have approval for a loan and all I have to do is sign and send it back an money will be in my account. same as last time..

    Not one to name names but this particular institution stated that exact reason to me when looking for the loan. Although he was a grumpy ould fella and i was 18 looking for the first car at the time. I was gutted!


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    #11
    eamon234
    Registered Users Posts: 1,924 ✭✭✭eamon234


    She probably tried to get an unsecured Motor loan / Personal cash loan and got refused - the criteria for HP/Leasing isn't quite as strict because the finance is secured on the car although you still need a pretty good credit rating.
    You can't get a HP agreement on a private deal so that's why they probably want her to buy through a garage.


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    #12
    L1011
    Registered Users Posts: 68,902 ✭✭✭✭L1011


    Depends on the bank and the amount. Bank of Ireland just threw the cash for my (very small) car loan straight in to my bank account the day after they received my signature, this was quite a while ago mind.


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    #13
    bazz26
    Registered Users Posts: 51,244 ✭✭✭✭bazz26


    How things have changed in such a short period of time. Up to recently the banks were hounding you to take their money.


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    #14
    copacetic
    Subscribers Posts: 16,587 ✭✭✭✭copacetic


    dunno about that, I had exactly the same experience this year as 2 years ago. The woman in the OPs story could have been the same risk 2 years ago as now.


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    #15
    bazz26
    Registered Users Posts: 51,244 ✭✭✭✭bazz26


    copacetic wrote: »
    dunno about that, I had exactly the same experience this year as 2 years ago. The woman in the OPs story could have been the same risk 2 years ago as now.

    That to me would suggest that her credit rating is not great then as it was easier to borrow money over the last couple of years than it ever was.


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    #16
    deRanged
    Registered Users Posts: 3,744 ✭✭✭deRanged


    MYOB wrote: »
    Depends on the bank and the amount.

    That's what I found. BOI were grand, they just put as much money as I asked for into my account. Permanent TSB would only work with a dealer invoice.


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