# Moving Car Loan to Credit Union



## firsttimebuy (30 Aug 2005)

I currently have a car loan with GE Money and have another 2 years to run on it with repayments of €300 per month. I want to get a mortgage in the next few months and was wondering if I got a loan out with the Credit Union to pay off GE would this be taken in to consideration on my mortgage application? I know that the Credit Union does not show up on ICB report so would it look like I don’t have any car loan at all? Has anybody ever done this and does it work?


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## Ann-Marie (30 Aug 2005)

a few credit unions are using the icb


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## ClubMan (30 Aug 2005)

Some _CU's _do cooperate with the . In most cases mortgage lenders will ask you to declare any loans that are outstanding (including those from lenders that may not cooperate with the _ICB_) and to make a false declaration could undermine or jeopardise your application.

By the way - _GE Money _loans tend to be expensive as far as I know. What rate is your loan charging?

_Post crossed with PINK's._


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## firsttimebuy (30 Aug 2005)

The Credit Union I use does not use ICB I checked this out.

Not sure what rate GE charge but the repayments per month worked out €15 cheaper than a quote I got with AIB at the time.


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## asdfg (30 Aug 2005)

> Not sure what rate GE charge but the repayments per month worked out €15 cheaper than a quote I got with AIB at the time.


 
Are you sure the repayments period was the same. Some organisation have a habit of adding 1 to the number of repayments and charge an administration / set up fee


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## firsttimebuy (30 Aug 2005)

GE did charge an admin fee and I think you are right they did add on 1 to the repayments schedule. I didn't look at the rates at all was just worried about the monthly repayments. It just seemed easier at the time as the car dealer arranged everything for me. Just goes to show you need to look at everything and not just the amount you are paying per month.


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## ClubMan (30 Aug 2005)

Shouldn't the _APR _include the cost of any arrangement fees?


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## RainyDay (30 Aug 2005)

If your GE loan is a fixed rate loan, you may have early repayment penalties built into the contract.


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## Bizzy (31 Aug 2005)

firsttimebuy,
Is the Credit agreement a 'Hire Purchase' agreement?

Is the total of instalments remaining on the agreement more than the current value of the car?

Do you have more than 1/2 "Hire Purchase Price" paid? The figure for this will be on your copy of the agreement.

If the answer to all three questions above is Yes then YOU have the option to terminate the agreement in writing - this must be done correctly (Contact Financial Regulator for advice on this) - then return car. Provided car has only fair ware & tare on it you will not owe any more.  You can then organise your mortgage - and when you're sure you can meet mortgage payments you can see what you can afford for a car loan and go to the Credit Union.


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## firsttimebuy (31 Aug 2005)

The answer is yes to all those questions but would I not have the option to pay off the loan with GE in full? Do I have to return the car to them?


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## daltonr (31 Aug 2005)

You should be able to pay off the loan in full, but with Penalties.  If it's a fixed interest Loan,  it will be like paying the interest you would have paid had you run the loan for the full term.

You could get a loan from the CU and use it to clear the GE loan,  but you should consider all options.   It might be cheaper to get rid of the Car to GE with no further obligation to them, and then use a CU loan to buy another car.

Crazy as that sounds, it might actually be cheaper.   But don't forget to factor in the hassle, plus the cost of taxing the new car etc.    You could also take the opportunity to go for a smaller cheaper car, in which case you might actually save a bit.

-Rd


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