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Business car loan. Handy place to get one?

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  • 17-04-2022 11:05am
    #1
    mp3ireland2
    Registered Users Posts: 1,793 ✭✭✭


    I'm thinking of getting a car through my business. My business bank account is revolut, so I've no Irish Bank. Our personal accounts are with EBS so they don't do business loans. For a second hand vehicle the finance deals seem to be about 13.5% so wanting to get something cheaper. I'm only in business for one year, but EBS gave me a mortgage so I think I'd be ok and wouldn't mind being a personal guarantor. I'd like something hassle free where I just send off my documents and not have to take time off work to go in to a bank



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    #2
    drunkmonkey
    Registered Users Posts: 28,193 ✭✭✭✭drunkmonkey


    Might be worth opening a bank account and trying to get the loan under some business scheme they have going or finance the car with a garage, if you've the cash in the business maybe just buy it.

    You should be able to do a lot better than 13.5%, have you looked into BIK, a second hand car will cost the same as a brand new one the same model as BIK doesn't care how much it cost second hand, it's based off the new price.

    A fully electric or plug in hybrid will be the cheapest bik rates from January https://www.boards.ie/discussion/2058228171/bik-rates-for-2023-careful



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    #3
    maestroamado
    Registered Users Posts: 4,426 ✭✭✭maestroamado



    https://www.boards.ie/discussion/comment/118939178#Comment_118939178

    Avantmoney are offering loans for 5.9% to existing customers...



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    #4
    macvin
    Registered Users Posts: 716 ✭✭✭macvin


    I'd be checking out the benefit in kind tax first.

    If you pay higher rate tax, it will be 40% tax of the figure that is 30% of the price of the car as new

    So if you bought a 2010 BMW 5 series, the bik would be about €8,000 a year.



    Only time a company car makes sense is if it's 100% electric (no bik in first €50k value) or if you are doing serious business mileage



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    #5
    mp3ireland2
    Registered Users Posts: 1,793 ✭✭✭mp3ireland2


    Yeah I'm getting an electric one, might sell it to myself when the BIK starts tapering off. I might even buy an electric van. Getting solar panels installed in July so if I was sorted by then I could get the charger as part of the install



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    #6
    macvin
    Registered Users Posts: 716 ✭✭✭macvin


    13.5% is at money lender levels.

    usedcarfinance.ie are 8.5% and that's quite high considering ecb is less than 0%.

    Credit Unions will be circa 6% and many are willing to give loans to companies once they have a guarantee from you.



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    #7
    mp3ireland2
    Registered Users Posts: 1,793 ✭✭✭mp3ireland2


    https://www.boards.ie/discussion/comment/118952114#Comment_118952114

    Ah I didn't know credit unions could be an option. Thanks



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