# 13,000 / 5 year Car Loan - Please advise....



## JL77 (14 Aug 2006)

I need a carloan for 13,000 over 5 years. 

What would be the best way to go about this? I don't know anything about hire purchase but have been ringing banks for quotes for a car loan - AIB, BOI, BOSI, PTSB, Ulster Bank. Should I be looking farther a field? 

Also would I be better on a fixed or variable?

Cheers


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## Carpenter (14 Aug 2006)

Hire purchase is a different product to a personal loan, which is what a car loan is.  Hire purchase loans are secured on the value of the car, whereas a personal loan is generally unsecured.  A personal loan is better for car purchase in my opinion in that you have flexibility to shop around and haggle, as a cash buyer and this should help you to secure a better deal.


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## Guest107 (14 Aug 2006)

HP , you never own the car until the 5 years are up ,  the bank does . 
Loan ,  you own the car from day one.

AIB are quite cheap for loans at present . 

If I got a Fixed loan at 8% for the next 3 years (and then variable for the balance)  I would probably take that and say thanks.


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## barc (14 Aug 2006)

I got a personal loan with National Irish Bank 3 weeks ago for €7000 to for a car loan.  They gave me a fixed rate of 6.9% over 3 years.  If I had been borrowing over €10,000 they would have given me a rate of 5.5%.  They did not initially offer me 5.5% but when I asked what the best rate they could give they offered 5.5%.  It could be worth giving them a ring.


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## JL77 (14 Aug 2006)

Cheers 

Rang around and National Irish are the best at 5.5%. I wouldn't have thought of them only for your post - thanks for that.

All the best!!


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## Jamjam (21 Aug 2006)

Does anyone have an email for National Irish Bank??

I'm thinking thats a pretty good rate!


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## CCOVICH (21 Aug 2006)

This recent post on HP/car finance from Brendan may be of some use.


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## jake108 (22 Aug 2006)

barc said:


> I got a personal loan with National Irish Bank 3 weeks ago for €7000 to for a car loan. They gave me a fixed rate of 6.9% over 3 years. If I had been borrowing over €10,000 they would have given me a rate of 5.5%. They did not initially offer me 5.5% but when I asked what the best rate they could give they offered 5.5%. It could be worth giving them a ring.


 
Very interesting. How are they to deal with? 5.5% is a really good rate.


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## Judybaby73 (23 Aug 2006)

I checked out these National irish Bank loans.  I was told APR is 5.5% because I'm a member of a union! Anyway BOI are offering loans with APR of 7.1%. When I explained to BOI that NIB were offering a much lower APR I was told to ask them the exact cost of credit on the loan i was applying for. The BOI person said that this is a better indication of which deal is better. So when I did there was very little difference between the cost of credit with an NIB loan and a BOI loan.


Am confused!!!!!


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## lff12 (23 Aug 2006)

Fixed rate is definitely best right now with interest rates still at historical lows.  I got an NIB loan myself a couple of months ago but at the standard rate (I'm not a union member so wouldn't have been eligible for that discount).  Ulster (and their affiliate Tesco) and also offering good rates for sub 10k loans until end of August - unfortunately they took so long to approve the loan NIB got in there first.  Having said that its my second loan with NIB, and they are easy to deal with once you get around their "paperless" application which means you've to go in to them.

Some of the banks are offering very cheap rates for big loans - would also suggest checking out Royal Bank of Scotland who do good deals too.  Sometimes BOI offer discounts on loans for alumni etc or for applying online.


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## CCOVICH (23 Aug 2006)

lff12 said:


> would also suggest checking out Royal Bank of Scotland who do good deals too.


 
Do you mean Bank Of Scotland (Ireland), or Ulster Bank (owned by RBS)?  RBS do not offer loans under the RBS brand here in Ireland.


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## irishpancake (23 Aug 2006)

Judybaby73 said:


> I checked out these National irish Bank loans.  I was told APR is 5.5% because I'm a member of a union! Anyway BOI are offering loans with APR of 7.1%. When I explained to BOI that NIB were offering a much lower APR I was told to ask them the exact cost of credit on the loan i was applying for. The BOI person said that this is a better indication of which deal is better. So when I did there was very little difference between the cost of credit with an NIB loan and a BOI loan.
> 
> 
> Am confused!!!!!



I too am confused by NIB fixed rates, particularly [broken link removed] which shows current personal loan rates.

What is this "Flat Rate (Variable)" 

Like for loans from €10K - €50K they are quoting this 3.92% "flat rate (variable)" or 7.50% APR. 

Does this quoting of Flat Rates comply with IFSRA standards.

It is very hard to understand.

Also, where does this Union membership preferential rates/treatment get a mention? 

What Union? Any Union?

Very confusing


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## Perplexed (23 Aug 2006)

Just remember with a fixed loan that if you want to repay it early that you will be penalised.
If you're sure you want it for the full 3 or 5 yrs that's fine


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## CCOVICH (23 Aug 2006)

irishpancake said:


> I too am confused by NIB fixed rates, particularly [broken link removed] which shows current personal loan rates.
> 
> What is this "Flat Rate (Variable)"
> 
> Like for loans from €10K - €50K they are quoting this 3.92% "flat rate (variable)" or 7.50% APR.


 
See this thread.



			
				irishpancake said:
			
		

> Does this quoting of Flat Rates comply with IFSRA standards.
> 
> It is very hard to understand.


 
As long as they quote the APR, I don't think it matters-the flat rate may in fact be no more misleading than nominal rates.



			
				irishpancake said:
			
		

> Also, where does this Union membership preferential rates/treatment get a mention?
> 
> What Union? Any Union?
> 
> Very confusing


 
Such preferential rates rarely get mentioned on the product providers site (it's pretty clear why IMHO), but you can find details on the union's website I'll bet.  The NIB discount for union members was discussed before-I think it was one of the teachers unions.


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## CCOVICH (23 Aug 2006)

Perplexed said:


> Just remember with a fixed loan that if you want to repay it early that you will be penalised.
> If you're sure you want it for the full 3 or 5 yrs that's fine


 
Not all fixed rates loans carry such penalties.  Tesco, for one, don't not impose a penalty when a fixed rate loan is repaid early.


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## irishpancake (23 Aug 2006)

CCOVICH said:


> See this thread.
> 
> 
> 
> ...




Jeez CCOVICH, it just goes to show how mad this forum is, you just quoted me a thread to which i contributed, to try to "clarify"   for you the very question i just asked about those infernal fixed "flat rates" with the little addendum "(Variable)" still  

How crazy is that  

Think I'll stick with the APR or Cost/1000.

Point taken about the preferential rates, it's just that i am a Union member, and my union doesn't advertise such a discount. However, they do organise othe discounts, such as travel insurance, etc.


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## MsGinger (24 Aug 2006)

Also might be worth checking your credit union - my CU offers 5% on car loans and flexible repayment options etc


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