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Were's Best Place for a Car Loan ?

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  • 14-01-2015 1:29am
    #1
    faolteam
    Registered Users Posts: 1,778 ✭✭✭


    Just wonderin best place to get a low interetr rate for a car loan

    I would appreciate advice , was quoted this by Credit union :

    AMOUNT
    BORROWED €15,000

    TERM 4 years

    MONTHLY
    REPAYMENTS €365.50

    TOTAL
    INTEREST €2,544

    TOTAL
    REPAYABLE €17,544

    A.P.R.* 8.19%


Comments

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    #2
    jameshayes
    Registered Users Posts: 3,772 ✭✭✭jameshayes


    8.19 seems high, car finance direct with a dealer might be a better option (e.g. Volkswagen bank)


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    #3
    Anyone
    Registered Users Posts: 3,376 ✭✭✭Anyone


    jameshayes wrote: »
    8.19 seems high, car finance direct with a dealer might be a better option (e.g. Volkswagen bank)

    He will get a better deal walking in with 15k though rather than arranging 15k in finance. Also those dealer options always include a baloon payment at the end, and finally, the car isnt yours until the finance is cleared.

    With car finance, APR isn't the only thing to look for. As I said above, walking into any dealer with 15,000 will get you more car than walking in looking for finance.


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    #4
    chrysagon
    Registered Users Posts: 2,813 ✭✭✭chrysagon


    Credit unions vary... yours is high tbh


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    #5
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    This article from last Sunday's Independent might help you make a decision
    http://www.independent.ie/business/personal-finance/borrowing-blindly-for-a-car-can-cost-you-11000-30897477.html

    Trish


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    #6
    jameshayes
    Registered Users Posts: 3,772 ✭✭✭jameshayes


    Anyone wrote: »
    He will get a better deal walking in with 15k though rather than arranging 15k in finance. Also those dealer options always include a baloon payment at the end, and finally, the car isnt yours until the finance is cleared.

    With car finance, APR isn't the only thing to look for. As I said above, walking into any dealer with 15,000 will get you more car than walking in looking for finance.

    You're talking about PCP. PCP is finance with a balloon, you can equally get finance without the balloon.


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    #7
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    Anyone wrote: »
    He will get a better deal walking in with 15k though rather than arranging 15k in finance

    Is there any empirical evidence to support this? Dealers make significant commission on the finance deals they sign customers up to - sometimes more than the margin on the sale (I used to work for a motor finance company)

    I'd have though it was in the dealer's best financial interest to sell everything on a finance deal, especially PCP where they get the chance to sign you up to a new vehicle in 3 years time, and perhaps get the servicing money up front as well..


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    #8
    faolteam
    Registered Users Posts: 1,778 ✭✭✭faolteam


    As i am self employed a loan may be the best approach for tax puropses

    it would seem that the Credit Union still has the best rate, unless your prepared to put a hefty deposit down

    Also your not penalised if you want to pay more off the loan or end it quickly,


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