Car Loan/Finance

Mc Love

What is the best bank to go to for a car loan or are they all doing HP now?

AIB: Got a quote but they would only give me HP as still have balance outstanding on current car loan (pricks)

PTSB: Checked website and it looks like they do a Motor plan but that looks like HP

BOI: Will try them - very little on their website

Credit Union: Wont entertain as I am not regulare enough saver although they said they might be able to with 3 months bank statements and wage slip

Halifax: 12.5% APR on loan - very informative website

flamegrill

BOI HP on 31k came in at 7.74% APR.

HP is about all that's going on Cars at the minute. It's good for you, as you can hand the car back half way through without affecting your credit rating and get yourself a new car.

Paul

Mc Love

Thats one way of looking at it I suppose but dont you have to pay off the outstanding balance on the car?

flamegrill

Nope. You need to get to the half way mark, this is detailed in the agreement. Once you've done this you may call your bank and tell them you wish to return the car under the half rule. You agree to a mutually beneficial location to drop the car and that's it.

Paul

Mc Love

Thing is you dont own the car though. Would still prefer outright loan

ilovelamp2000

flamegrill wrote: »

Nope. You need to get to the half way mark, this is detailed in the agreement. Once you've done this you may call your bank and tell them you wish to return the car under the half rule. You agree to a mutually beneficial location to drop the car and that's it.

Paul

Provided the car is in good nick

flamegrill

Indeed. You're supposed to look after it... I've heard of people having to pay upto 2k to fix up the car. I've also heard of people having to pay nothing. As long as "due care" is taken it's a non issue.

Paul

seamus

Just got a motor loan with BOI for €8.5k. It's HP. Lending is so much stricter at the moment, it makes sense from both your and the bank's POV. Gone is the day back in 2005 when I rang up the bank saying I needed €9k for a car and I had money in my account 24 hours later. The car cannot be more than 3 years old and BOI pay the dealer directly, if it's an approved dealer. I don't know what happens if it's not an approved dealer or if it's a private sale. Interest rate is fixed, came in around 9%. That's better than the ~11% you'd have to pay on a personal loan.

I was told although it's a fixed rate, I don't have to stick it out. I can pay it off in full at any time without penalty, but I have to pay it off in full.

If you really don't want to go down the HP route, you could always get a discretionary personal loan, but you'd want a great credit record and a good strong income.

Still have to go through the final details with the bank, but I imagine I'm required to have fully comp insurance on it. If there's anything surprising I'll post it up.

Mc Love

Might change the title to is HP worth it? Over lets say a Loan.

Fizman

I went into my local BOI branch on Dec 23rd at about 2.30pm looking for a car loan. The requested amount was in my account within 24 hours, so there are loans to be had.

In saying that the lad did ask me quite a few questions re my job security, future plans and the like, but said the fact that my cr history was good as well as having paid off my previous loan a year early....all boded well for me.

Gumbo

loans are still out there, sold my GF's EP3 Civic for cash twice in the last 6 weeks!

first owner bought it then lost his job, so said we'd help him out selling it on again as we know him well.

Mc Love

Fizman wrote: »

I went into my local BOI branch on Dec 23rd at about 2.30pm looking for a car loan. The requested amount was in my account within 24 hours, so there are loans to be had.

In saying that the lad did ask me quite a few questions re my job security, future plans and the like, but said the fact that my cr history was good as well as having paid off my previous loan a year early....all boded well for me.

How much was your loan? I do notice you have paid your loan off though. I must see if they will give me the loan if I pay off my loan. Have savings, have good cr history, never missed payments etc

Absurdum

are they giving 100% loans still? I thought they were looking for 20% deposit these days?

I think they only do motor loans to approved dealers, if it's not from one of them you might need a personal loan. Also, PTSB are only doing loans over a maximum of 4 years now instead of 5.

Fizman

Mc Love wrote: »

How much was your loan? I do notice you have paid your loan off though. I must see if they will give me the loan if I pay off my loan. Have savings, have good cr history, never missed payments etc

Only 9k over 3 years. My previous was 10 over 3 and was closed off after 2, so all goint well this will be gone even sooner. That was a definite helper. The fact that you have consistent savings (like myself) will help too, along with not missing payments.

Absurdum wrote: »

are they giving 100% loans still? I thought they were looking for 20% deposit these days?

I think they only do motor loans to approved dealers

Well it's all relative really. If the car I was purchasing was worth 9k, then that could be seen as a 100% loan. I reckon it all comes down to your history, as well as how you come across in terms of when you are sitting down discussing it. Think of it like an informal interview, but as long as you sound reasonable (I gave the whole "need to change to diesel for work etc etc" spiel - even though it was true at the time and I end up going off in the complete opposite direction :rolleyes:).

Mc Love

Yeah I was looking for 11 over 4 years and even said I would use some of my own money too. If it was down to the branch I would have gotten it no problem, but due to NAMA it has to go to Credit Centre in Dublin now (Booo)

MarkN

Plenty of lending still going on - all very much a case by case basis.

Dealers that have history with a bank can get deals and those dealers that aren't on the books of the main banks are gonna find it difficult to trade.

I'm looking at something at the moment and I've had to do all the ringing myself with banks something very off putting when I can just go another dealer the bank will deal with directly.

The term of the loan depends on the car type also, they will give 5 for all new cars anyway.

Colonel Sanders

I'm assuming dealers are no longer doing 0% finance offers on new cars?

Anan1

Colonel Sanders wrote: »

I'm assuming dealers are no longer doing 0% finance offers on new cars?

There's no such thing as a free lunch, the cost of the finance (and more) is always included in the price.

Mc Love

Got a call from Bank saying that my loan is approved after going back saying i didnt want HP.

Too late seeing as the car I wanted is gone now!