Applying for first loan.

thehomeofDob

Hi Guys,

I'm in need of a small bit of advice. I'm looking to purchase a car within the next two months. I didn't get the idea into my head until just after Christmas so I've only amassed a small savings. The savings account is with BOI - it's €200 bi-weekly, there is currently €1000 euro there and I figure €2400 around the time I would like to make a purchase.

I would like to purchase a car for €4-4500 and have €1-1500 available for an insurance deposit and possible tax/vrt (c. €1000) if it's bought from the north.
This means roughly €4000 of a loan needed.

Bit of background, I'm a 21yo male, living at home, working full time (4 years), earning 24k gross a year. I know I could go for a cheapie car, but this will be secondary/pleasure transport only so I'd like a decent car. I've a motorbike for my commute that will always take first priority.

Now - what are my options for getting this kind of money? Bank loan? Start regular savings with credit union? Bite the bullet and just wait untill I've saved enough (10 months at current savings rate).

Thanks

Toots

You could apply for a loan through your bank. You have a decent income, with few outgoings, and have also started a savings plan, so based on that info I'd say you'd be in with a good chance of getting a loan. You could also join your local credit union, and start saving with them. Ask them on opening an account what the procedure would be for a loan, like how long would they want you to have your account there/how much would you have to save to apply for the loan.

thehomeofDob

What are the best financial institutes to apply for a loan? I've checked with my own bank (BOI) and they have the highest APR for a three year loan that I have seen. I've checked with AIB and Ulsterbank. So far AIB are the cheapest.

I think I've decided to take the whole amount in the loan, and leave my savings for a rainy day.

dellas1979

I got a car loan there about 1.5 months ago with nothing in my credit union account...I had to put in e50 to make the application.
I then made appointment, got all my documents together (print out of AIB savings account - they like to see you are a regular saver) and made application.
I had to haggle with them for the term of the loan, but I got 5000 over 4.5 years which works out at e20 per week, plus e5 goes to CU savings account. Few things to note:

1. I dont know/understand why you want to get yourself into debt for something you dont really need - ok, its your own business, but be careful. I spent the best part of 2 years saving up and checking out exactly what loan I wanted/were the best.

2. Id advise you to save up the money instead and either then buy it or by then you might have changed your mind (hey I remember what it was like to be 21).

3. If you do proceed with loan, CU really do the best car loans at the moment. The big factor for me is that you can pay it off early with no penalty. So if I do come into money, I can take down loan - plus e20 a week is not going to kill me (employed or unemployed).

4. Again, unless necessary I wouldnt advise you to get a loan for something you dont need.

thehomeofDob

BirdieNumNums wrote: »

4. Again, unless necessary I wouldnt advise you to get a loan for something you dont need.

I guess CU is the way to go. Thanks for all your help! On this point I guess I didn't explain myself enough, for fear of having too long an original post. It isn't quite unnecessary really, I could live without it but it would make life an awful lot easier. I would love to not get into debt and save up, but I promised the girlfriend we'd do some touring this summer before she starts college hence the time constraints. Either way I've got two months to make a decision, I need to get all my facts straight before that. Again though, thanks for your advice

stepbar

thehomeofDob wrote: »

Hi Guys,

I'm in need of a small bit of advice. I'm looking to purchase a car within the next two months. I didn't get the idea into my head until just after Christmas so I've only amassed a small savings. The savings account is with BOI - it's €200 bi-weekly, there is currently €1000 euro there and I figure €2400 around the time I would like to make a purchase.

I would like to purchase a car for €4-4500 and have €1-1500 available for an insurance deposit and possible tax/vrt (c. €1000) if it's bought from the north.
This means roughly €4000 of a loan needed.

Bit of background, I'm a 21yo male, living at home, working full time (4 years), earning 24k gross a year. I know I could go for a cheapie car, but this will be secondary/pleasure transport only so I'd like a decent car. I've a motorbike for my commute that will always take first priority.

Now - what are my options for getting this kind of money? Bank loan? Start regular savings with credit union? Bite the bullet and just wait untill I've saved enough (10 months at current savings rate).

Thanks

I don't think you'll have a problem TBH. Go for the loan. BTW I would recomment the Credit Union before any of the banks. The CU is considerably cheaper and locally driven which is a big plus (I know considering I moved my car loan to them having had same with BOI - however the only reason I moved same was because of BIK tax).

stepbar

In terms of the loan I tranferred to the CU all I had to put up was a grand (on a loan of 12k). But that was all because I knew the folk in the CU (relatives of mine). Differs for different strokes and folks.