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Cheapest Loan?

  • 26-02-2017 1:55pm
    #1
    Zascar
    Moderators, Motoring & Transport Moderators, Music Moderators Posts: 12,778 Mod ✭✭✭✭


    If I want to borrow 10k to buy a used car, what is the best option? AIB are giving a rate of 8.95% is there anything significantly cheaper available?


Comments

  • #2
    ytpe2r5bxkn0c1
    Closed Accounts Posts: 32,688 ✭✭✭✭ytpe2r5bxkn0c1


    Your local Credit Union?


  • #3
    Zascar
    Moderators, Motoring & Transport Moderators, Music Moderators Posts: 12,778 Mod ✭✭✭✭Zascar


    I'm not a member but my mother always tells me I should be. Don't I have to have a track record to get a loan or how does it work?


  • #4
    mickmac76
    Registered Users, Registered Users 2 Posts: 400 ✭✭mickmac76


    It's very unlikely that the credit union would be cheaper than AIB. Credit unions usually charge interest rates of 10% or higher. Although they often have an interest rebate at the end of their financial year. There doesn't seem to be anyplace where you can check short term loan interest rates like you can with mortgages.


  • #5
    Zascar
    Moderators, Motoring & Transport Moderators, Music Moderators Posts: 12,778 Mod ✭✭✭✭Zascar


    This one says they do 6.5% of car loans which is very good: https://www.secure-ssl-servers.us/stillorgancu-ie/loancalculator.aspx
    Not sure if there are specific stipulations.

    Do you usually have to be a member, regularly saving for a period of time before they will give you a loan?


  • #6
    phormium
    Registered Users, Registered Users 2 Posts: 3,345 ✭✭✭phormium


    It all depends, in theory yes you should be a regular saver but they all have slightly different rules, worth asking anyway as exceptions are not unheard of!


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  • #7
    Pete123456
    Registered Users, Registered Users 2 Posts: 963 ✭✭✭Pete123456


    Zascar wrote: »
    This one says they do 6.5% of car loans which is very good: https://www.secure-ssl-servers.us/stillorgancu-ie/loancalculator.aspx
    Not sure if there are specific stipulations.

    Do you usually have to be a member, regularly saving for a period of time before they will give you a loan?

    Some credit unions have stipulations that you must be a member for a certain period of time and/or that you are lodging money on a regular basis and/or that you can only borrow a certain number of times your shares and/or that your first loan must be a secured loan (that you can only borrow up to your saved amount and leave that to them as collateral).

    for that CU you liked to: After saving for one month you may apply for a loan of up to four times your savings. Second and subsequent loan may be applied for at a ratio of up to 10:1.

    yet on a different page of their website: After 4 weeks of savings you are eligible to apply for your first loan of up to 6 times your savings e.g.(savings €1,000 - Loan €6,000). A share requirement will apply for subsequent loans.

    So its worth giving them a ring and checking it out, but they seem to be closed Sunday and Monday.


  • #8
    ytpe2r5bxkn0c1
    Closed Accounts Posts: 32,688 ✭✭✭✭ytpe2r5bxkn0c1


    mickmac76 wrote: »
    It's very unlikely that the credit union would be cheaper than AIB. Credit unions usually charge interest rates of 10% or higher. Although they often have an interest rebate at the end of their financial year. There doesn't seem to be anyplace where you can check short term loan interest rates like you can with mortgages.

    My credit union is from 5.9% to 7% depending on the loan type. I have never seen one with a 10% rate.


  • #9
    duffman13
    Registered Users, Registered Users 2 Posts: 8,953 ✭✭✭duffman13


    Amirah Damaged Yo-yo wrote: »
    My credit union is from 5.9% to 7% depending on the loan type. I have never seen one with a 10% rate.

    My credit union is around 10% Every now and then they throw up an offer for 8.75% or something. Massive variations between different ones


  • #10
    ytpe2r5bxkn0c1
    Closed Accounts Posts: 32,688 ✭✭✭✭ytpe2r5bxkn0c1


    Zascar wrote: »
    This one says they do 6.5% of car loans which is very good: https://www.secure-ssl-servers.us/stillorgancu-ie/loancalculator.aspx
    Not sure if there are specific stipulations.

    Do you usually have to be a member, regularly saving for a period of time before they will give you a loan?

    I assume you reside or work in their catchment area.


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