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Question RE: Car Loan

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  • 31-03-2009 10:59am
    #1
    Sean^DCT4
    Registered Users Posts: 527 ✭✭✭


    Hi all,

    I have recently applied for a Variable Rate loan with AIB (€15000).

    Within a few hours I had a reply from the bank stating my loan had been approved although they were only going to offer me a Hired Purchase fixed interest loan.

    Now here's the great part. I have been told (from the bank) on 2 occasions that the car must be bought in the Republic and not in the north/UK which was my intention.

    This does not sound right to me and I was wondering if anyone could offer me some advice on this matter/point me in the right direction.


    Thanks


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    #2
    Vagabondo
    Registered Users Posts: 25 ✭Vagabondo


    I was doing a recearch on loans for myself back in summer 2007. I needed 10k. Same with AIB it was better for me to go for a personal loan for the purpouse of Home Improvement (in reality I am a tenant). Got it instantly and the Bank didn't ask for any proof where the money went.


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    #3
    Evertonia
    Closed Accounts Posts: 61 ✭✭Evertonia


    I am in same situation as OP. Looking for €9k finance to buy Car out of North/UK. Will i need to get a personal Loan?


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    #4
    Owen
    Registered Users Posts: 12,683 ✭✭✭✭Owen


    Sean^DCT4 wrote: »
    Now here's the great part. I have been told (from the bank) on 2 occasions that the car must be bought in the Republic and not in the north/UK which was my intention.

    Because the bank will need an invoice from the company you're purchasing the car from. If it's a HP agreement, must be invoiced to the bank.

    However, if you get a personal loan, you can go to the UK/North.


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    #5
    Sean^DCT4
    Registered Users Posts: 527 ✭✭✭Sean^DCT4


    ned78 wrote: »
    Because the bank will need an invoice from the company you're purchasing the car from. If it's a HP agreement, must be invoiced to the bank.

    However, if you get a personal loan, you can go to the UK/North.

    I do understand the HP type of loan.

    My issue is the fact that they are stipulating that I cannot purchase it in the north / outside of the Republic. I would have thought that this was a breach of some sort or EU free trade movement law? This is what I was getting at.


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    #6
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    If the bank want to go down the road of giving your car finance as opposed to a personal loan it's because the car is security for the facility. If you buy outside of the republic the bank are unable to check that there is no loans outstanding on the vehicle. Unsecured personal loan is much higher risk than giving car finance with the car as security


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    #7
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    Evertonia wrote: »
    I am in same situation as OP. Looking for €9k finance to buy Car out of North/UK. Will i need to get a personal Loan?

    Yes as the bank will only take cars registered in the republic as security for car finance loans as they can do a vehicle check to ensure there are no loans against it


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    #8
    s_carnage
    Registered Users Posts: 2,672 ✭✭✭s_carnage


    I applied recently (last month) for a car loan off AIB and when I got the call back from the lending dept they asked me was it a HP type loan I wanted and I said no. Was called back later on to say it was approved and there was no mention whatsoever about not buying the car in the North/UK. Maybe try getting on to your bank manager about it and he/she might be able to follow it up a bit further.


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