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Motor Loan Advice

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  • 17-04-2010 10:11pm
    #1
    Cookie_Monster
    Registered Users Posts: 24,501 ✭✭✭✭


    Hey all,

    Looking fro a bit of advice re a BOI motor loan, its a hire-purchase. 36 months and car is worth about 1.25 times loan, paid 4 months of it. I can afford it but don't need the car as much as I did so looking at it as a way or reducing expenditure. selling, paying back loan and use remaining monies to buy smaller car

    Thinking of selling the car and wondering what the story is with bank, want to get advice before I say anything to them (and alert them:D).

    IF I want to sell the car and pay them back is it ok, obviously I have to tell them as they technically own it till I finish payments. would it affect credit rating or anything?

    the paperwork doesn't really say much about it.


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    #2
    Mr. Presentable
    Closed Accounts Posts: 9,496 ✭✭✭Mr. Presentable


    I think as it's HP you are not allowed to sell it until paid for. Can you get another loan, pay the HP on the car, and then sell so as to pay off the 2nd loan?


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    #3
    gerrycollins
    Registered Users Posts: 1,799 ✭✭✭gerrycollins


    I was in a similar situation recently however my car was 2 years old and I paid some of my own money into it so when i sold it the money i made was used to pay off the HP and had a bit left over. the buyer came to the bank with me to clear the loan before he drove away. I was lucky

    the value you put on the car comes from where? a sample of forecourts? as a private buyer/seller you would expect to get it for less than that especially if you want to sell it in this market. everyone is looking out for a good deal nowadays and not into paying the "standard" price anymore.

    if you go back to a garage with it they will give you the trade value which is usually up to €3k less than the forecourt price and will only do a deal or trade in if the sale is in their interest.


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    #4
    dudara
    Registered Users Posts: 33,518 ✭✭✭✭dudara


    Moved to Banking & Insurance & Pensions

    dudara


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    #5
    Cookie_Monster
    Registered Users Posts: 24,501 ✭✭✭✭Cookie_Monster


    car was second hand when bought so know rough value. it was worth 12k more than loand when bought, so including interest & some depn is about 8-9k more now


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    #6
    gerrycollins
    Registered Users Posts: 1,799 ✭✭✭gerrycollins


    you have to sell it for cash obviously no harm in advertising it however make sure you pay off the hp before the car leaves you. did you get it at variable or fixed?

    if fixed you could be charged up to 3 months payments extra for breaking a fixed term loan. if variable then its just a case of the interest on the day you pay it off been added on to it.


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


    So your offer letter is from Bank of Ireland Finance? Otherwise it's not a HP deal.


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    #8
    Cookie_Monster
    Registered Users Posts: 24,501 ✭✭✭✭Cookie_Monster


    stepbar wrote: »
    So your offer letter is from Bank of Ireland Finance? Otherwise it's not a HP deal.

    yeah, it is.


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    #9
    Cookie_Monster
    Registered Users Posts: 24,501 ✭✭✭✭Cookie_Monster


    gerrycollins wrote: »
    you have to sell it for cash obviously no harm in advertising it however make sure you pay off the hp before the car leaves you. did you get it at variable or fixed?

    well its set monthly payments so I'm assuming fixed as I only have to pay an extra €10 admin in the last payment and nothing else.

    I have the option to pay it all off in one go once past halfway,but can't increase payments or stick more in if I wanted too.

    They wouldn't let me pay weekly or biweekly either, only monthly :mad:


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