# Car Loan



## passat (18 Feb 2006)

Hi. Which are the best car loan deals around at the moment? car loan for E30k for a 3 or 5 year term.


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## CCOVICH (18 Feb 2006)

Have a search of the Banking, Borrowing and Credit Cards forum, the topic has been discussed before.

You should qualify for 6.9% with [broken link removed] based on the details above (I'm assuming a new car).

I may start a car loan thread if I can get a range of reliable data.


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## Rud Annamh (24 Feb 2006)

Hi there 

*Warning - Newbie, so potentially stupid question*

De-lurking to post a question:
I've taken a look at the ptsb, tesco.ie and other loan providers and it's obviously not a question of applying the APR to the loan to calculate the cost of finance, so what am I missing? I assume it's some sort of compounding effect, but would really appreciate if someone could explain, so I sound more knowledgeable when speaking to the bank.

I want to borrow €10k and repay over 36 months. At 7.5%, the total cost of finance should be €750, therefore repayments €298. I'm being quoted €311 p.m., so total cost of finance is €1,160 - why is this?

When I called the Tesco loan centre for an explanation I got the "I can only tell you what's on the screen in front of me" response.


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## CCOVICH (26 Feb 2006)

The Tesco figures are correct, as verified by my good self here.

I used www.calculator.com when working out repayments and cost of credit.

See this thread for an explanation of how the cost of credit is calculated.


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## jprender (1 Mar 2006)

It is important to shop around regardless of the published rates that the financial institutions have put out there. My wife is looking for 22k over 5 years. So far she has had PTSB confirm at 6.9%, repayments of 435 per month. She put this to AIB who immediately said she can have it for 430 per month. and this document fee thing that some banks look for, whatever you do, never ever agree to pay this.


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## CCOVICH (1 Mar 2006)

Yes,  it is always a good idea to shop around, but the 'Best Buys' key posts will only include verifiable rates, i.e. those published by lenders.  If others benefit like _jprender's_ wife, then by all means let us know how they did this.


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## jprender (1 Mar 2006)

Agreed that best buys posting is of great relevance.

Keep up the good work !!


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## abbie (1 Mar 2006)

jprender said:
			
		

> It is important to shop around regardless of the published rates that the financial institutions have put out there. My wife is looking for 22k over 5 years. So far she has had PTSB confirm at 6.9%, repayments of 336 per month. She put this to AIB who immediately said she can have it for 330 per month. and this document fee thing that some banks look for, whatever you do, never ever agree to pay this.


 

How do you get away with not paying a documentation fee - I thought it was compulsory.  Got loan approved for trade in on new car and they are charging 60 euros for the pleasure of the paperwork - i have been with the bank since i was 12 years old.


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## jprender (1 Mar 2006)

tell them you want them to waive the fee.  Nothing is compulsory.   PTSB dont even charge one.  AIB tried and we told them that we were not going to pay it so they agreed to waive it.


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## mollser (20 Mar 2006)

Is that PTSB loan a 'Hire Purchase' loan, as opposed to a nice straightforward variable loan?

I am preferring the idea of having a normal variable loan, in order to pay down extra amounts at will, what with ssia coming in a year etc...

The Hire purchase type loans do not appeal to me as you are locked into a fixed contract.


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## Shane (5 Apr 2006)

you should getan apr of around 7%


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## Digger (6 May 2006)

I went into my bank and blagged a rate of 6% of them for a car loan of 16k for 48months
Total cost of finance is just under 2k from memory. Now  it is fixed for the period but I plan to pay of loan early using SSIA money next year , was told ther would be a 30 fee for early enclosure which seesm reasonable . But when the time comes I will do my maths to see everthing is in order. My monthly repayments are 374 per month.


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## Hel_n (19 Jul 2006)

mollser said:
			
		

> Is that PTSB loan a 'Hire Purchase' loan, as opposed to a nice straightforward variable loan?
> 
> I am preferring the idea of having a normal variable loan, in order to pay down extra amounts at will, what with ssia coming in a year etc...
> 
> The Hire purchase type loans do not appeal to me as you are locked into a fixed contract.


 
I financed my car through PTSB and was offered a rate of 6.9%.  I had no problem increasing my repayments to reduce the term.


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## phoenix_n (20 Jul 2006)

passat said:
			
		

> Hi. Which are the best car loan deals around at the moment? car loan for E30k for a 3 or 5 year term.


 
I'd advise paying cash for a older car. When it comes to cars an old bloke i knew told me 

"if you cant afford to pay cash, you cant afford it.


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## PMI (24 Jul 2006)

As far as I can determine, the current best value on car or personal loans is fron Bank of Scotland @ 7.2% fixed.  I anybody can contradict this please say so and Hurry.


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## Trafford (1 Aug 2006)

The Credit Union are supposed to be very competitive for car loans, if you are a member.


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## jprender (18 Aug 2006)

I have just secured a variable rate car loan with AIB yesterday on a variable rate of 6.07% APR over 5 years. Amount borrowed 29k. They also waived the document fee. I managed to get them to reduce monthly repayments by over 15euro from the initial quote just by telling them that their quote wasnt competitive enough. Haggle, haggle, haggle.


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## Centless (7 Sep 2006)

Last year when shopping around for a car loan I contacted the AIB and dealt with a person very keen to get our business. I cannot remember the exact rate quoted but the best they were willing to do was 3.5 or thereabouts! I then rang the EBS as we have a mortgage and managed to secure a rate exactly the same as our variable mortgage of 3.75 or thereabouts (even cheaper than a CU). Needless to say the AIB could not match this. Before anyone asks, it is completely seperate to our mortgage (it is not a top up) - I went to great lengths to prove this and even got an email from EBS stating that this was  an independent loan and not tied to our mortgage.


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## Omega (13 Sep 2006)

I'm a bit confused about variable versus fixed loans. Fixed rates appear to be lower but is this because they front-load the loan with all the interest and expect you to pay this even if you finish the loan early?


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## dicey_reilly (14 Sep 2006)

pgf5312 said:


> I'm a bit confused about variable versus fixed loans. Fixed rates appear to be lower but is this because they front-load the loan with all the interest and expect you to pay this even if you finish the loan early?


 

Hi PGF

Fixed rate means that the interest rate remains fixed for the term of the loan i.e. if you are paying €400 / month over 36 months - that will not change irrespective of what happens to bank (base) rates generally.

Variable rates, as the name implies, means that your payments may vary subject to changes in bank base rates. This means that you may start off paying €400 / month but as interest rates rise - so will the amount of your monthly repayments and therefore also the total you will repay. On the other hand, if interest rates fall - your payments would also reduce accordingly.

Any loan that has set-up costs or admin fees etc will usually add these fees to the principle lent and charge you interest from day 1.

(From experience - a fixed rate loan is more likely to have bigger 'early settlement' penalties.)

Regards
Dicey


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## Omega (14 Sep 2006)

Thanks, Dicey.
In that case, is the current Tesco offer of 7.5% for a Fixed loan with "No set up fees, and NO EXIT PENALTIES" an absolute steal? Or is there a catch?


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## Ballabooyeah (21 Sep 2006)

Centless said:


> Last year when shopping around for a car loan I contacted the AIB and dealt with a person very keen to get our business. I cannot remember the exact rate quoted but the best they were willing to do was 3.5 or thereabouts! I then rang the EBS as we have a mortgage and managed to secure a rate exactly the same as our variable mortgage of 3.75 or thereabouts (even cheaper than a CU). Needless to say the AIB could not match this. Before anyone asks, it is completely seperate to our mortgage (it is not a top up) - I went to great lengths to prove this and even got an email from EBS stating that this was an independent loan and not tied to our mortgage.


 
Just a question here.

I am currently looking at taking out a loan of 10k for a car.  I was plannin g to take some equity out of my mortgage to do this.  Mainly to get the prefered rate of 4.5% (I think it is now)

So are you saying I should go in and just demand the 7k for the 4.5% rate?   I can see how it is better to pay it off faster than dump on the mortgage.  

Thanks for the tip


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## Centless (2 Oct 2006)

"So are you saying I should go in and just demand the 7k for the 4.5% rate? I can see how it is better to pay it off faster than dump on the mortgage".

Thats the way I approached it - basically I had got quotes from a number of banks etc and said so to the EBS. None of the other quotes were able to touch it.


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## Savvy (20 Jan 2009)

jenna343 said:


> If I were you shop around...Don't be contented in just one reference.



er.... this thread is over 2 years old..let it die!


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## muthu22 (28 Jan 2009)

Go to your bank, and get a statement showing the loan is paid off. Then take that along with your divorce decree and go to your state's Department of Motor Vehicles and tell them your story. They will have procedures for this situation.
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Muthu



[broken link removed]


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