Bank of Ireland - Topup Loan Questions

Sinister747

Hi Everybody...

Ok here's my story, a year ago i got a motor loan from Bank of Ireland to buy a new car. I bought the car and was very happy for around a year, now i want to change the car.

The loan when i got it was worth around 5900 euro and is now down to around 3700. Which makes me happy, however i recently decided i wanted to buy a new car which is worth 2,500 and then to cover the first insurance deposit i need around 350 euro, so i was thinking of getting a top-up loan of 3000 euro on top of the existing 3700.

That means it would push my loan up to 6,700. I have a weekly income of 200 euro and on some weeks 489 depending on the days. I have never ever missed a payment on my loan and really want this top-up loan for my new car. Has anybody here ever dealth with Bank of Ireland and top-up loans that can give me any advice or maybe the chances of myself getting the loan.

Also does anybody know how long it takes for a topup loan to go through?

samhail

I dont know whether you have asked the question of your self first whether you can afford it.
that kinda money im paying about 130-150e/month so about 80/week.

i havnt dealt with boi with top ups. i asked for a topup loan with AIB and i only got authorised for a car loan !
which means that i have 3.5k on my previous loan to pay off and only a motor loan ! so i cant pay off my old loan.

Sinister747

Thanks for the response, i am pretty certain i can afford it. When i went in the first time for my motor loan i got it put in the account on the day, i have a pretty good credit history so i think that helped.

I also have a guaranteed income of 200 per week, and i also own a small business which currently has 2,100 in overdue payments which should be collected soon.

dotsman

OK, a bit confused by your post. Are you saying that your new car will cost 2,500 in total, or after you trade in your current car? What is the current value of your current car.

Ultimately, the value of the new car will need to exceed the amount of the loan (by a good bit!).

Secondly, I'm a bit confused by your income of €200 per week. That's below minimum wage for a 39-hour week. How are you able to fund the rest of your life (besides the loan repayments)? Do you live with your parents?

Why are you changing cars after only 1 year? This is usually considered either a luxury, or a necessity (ie. due to the fact that the current car is a heap of scrap metal!)

Sinister747

Thanks for the response, let me try answer your questions below;

Are you saying that your new car will cost 2,500 in total
Yes in total the car will cost 2,500 but i also want a bit extra to pay the insurance deposit and if i need any repairs.

What is the current value of your current car.
The car is worth around 990 euro.

I'm a bit confused by your income of €200 per week
I don't work full-time, and i am a student the income is from Back to Education funding. Also yes i live at home with my mother. The rest of my life doesn't cost all that much i don't go out much or anything like that.

Why are you changing cars after only 1 year?
The car has been acting up a lot, and i am sick of the lack of comfort and reliability.

dotsman

Afraid I've some bad news for you so...

Basically, you're looking for a loan of €6,700 to buy a car worth €2,500. With a low wage and (probably) not guaranteed - Given the current climate, what's to say that you might not have your job in 6 months time (especially if you are doing exams etc anyway).

Now, your maths also seem to be a bit wrong. If you sell off your old car, you will have an extra €1,000 (approx). So surely you only need €5,700. You still probably won't get this. But can you borrow the remainder from another source (parents/older siblings etc).

Comfort is a luxury I'm afraid you're going to have to do without for the moment (students aren't suppose to drive comfortable cars anyway:D). The reliability issue, however, I can understand. However, if you had a loan of €5,900 to buy it, I assume that the car was worth in excess of €6,000 just last year? Is there any warranty? There must be something wrong if it has shed over 80% of its value in just 12 months!

Ultimately th golden rule of car loans is that they should last as long as the car (at a minimum). What I mean is that in taking out a loan for 3 years, you should expect to hold on to the car for at least that, and even then the car has some value.

Sinister747

Thanks for your response, i'm not looking for a 6,700 loan. I am looking for a 3,000 euro loan. But i know what your saying about the whole thing totaling to 6,700. But could i not tell the bank it costs 3,000?

If i sold the car i would get 1000, so i would need 2000. Also unfortunately i have a loan parent and she is on disability allowance and my brother and sister don't live in Ireland anymore. I originally got a loan of 4,500 but with interest it ended up around 5,900.

The loan was originally to cover a debt i had and to buy the car as well. I actually purchased the car for 800 Euro of a relative but 10 years took a bad toll on a Ford Fiesta. So it didn't actually shed any value its just that i had to clear of a debt.

The car would easily last another few years, but i drive on the motorway a lot and the engine can't take it anymore according to my mechanic. But it would easily last a good few years in the city. It has also been crashed once by the previous owner and i once hit a van.

Sinister747

On a side note, do you have any idea how long it takes a bank to decide on a top-up loan. When i got the motor loan he told me there and then.

Will it be the same case with the top-up loan?

dotsman

OK, that makes a bit more sense.

I would try them anyway. You should get an answer straight away (either a yes/no or maybe). If it's a maybe (ie, it has to be further scrutinised by an experienced lender in head office etc), it might take a few days.

Sinister747

Thanks for your help greatly appreciated, i sure do hope i get it... i really want that car.

Have a nice day