Carloans-do banks check you bought a car?

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Emily123

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The APR on carloans seems to be lower than the APR on unsecured personal loans - does anyone know if the banks actually ask for confirmation that you bought a car?

Also - anyone know the best value for personal loans (yes I did check the Financial Best Buys, it's out of date for this type of loan...)
 
I got an AIB car loan recently and no checks were made. The money was transferred to my account.
 
Sure its just a way of marketing a loan "car loan"
They dont care what you spend it on. Are they taking any security against the car? if not its irrelevanyt if its a car or a holiday etc to them.

sure even that BOI add with the students who want drums etc show the banks are openly advertising we will lend you money for anything no matter what these days!
 
It used to be when you are applying for a car loan, that the Garage has to fax an Invoice to the Financial Institution and then the draft is released in the name of the garage. This is probably still the case if the loan is secured on the car.

I actually got a "car loan" from AIB as well, where the money was transferred into my account, but in my case it was a personal loan for a car as opposed to an actual car loan secured on the car. PGD, if you check your documentation, you may find the same applies.

The car loan used to only apply on cars up to 1/2 years old and if you want a loan on anything older, it goes the personal route. This would cover the Bank in case you default, the car is repossed and sold off. I could not see them giving a "car loan" on nothing without any security to back it up Thats why the rates for personal loans and car loans are different.
 
Thanks everyone for your replies. Looks like it might not be a runner then - it was worth asking anyway!

Has anyone recently done any comparisons of personal loan rates - who are the most competitive? I am looking for either a variable loan or a fixed one that doesn't penalise you if you pay it off early as I'm hoping to not need it for the full term.
 
Emily,

I work for BOI & we certainly do not check who you pay the money to !
It may be secured on the car if it's a lease agreement but that's totally different from a normal term loan.

It's just transferred to your a/c on drawdown. Normally if you're buying a car you require a draft but we don't insist unless you request it.

A fixed rate normally would incur a penalty if you pay it off early, because the rate is based on a fixed term.
 
Perplexed said:
I work for BOI & we certainly do not check who you pay the money to !
Click to expand...

BOI's fixed carloan is cheaper than the fixed personal loan. Are you telling me they don't normally look for proof as to what you actually use the money for?

While I'm talking to you - the BOI website says "A 1% reduction off standard variable rate loans is applied to online variable rate applications which are approved". I'm not currently a BOI customer, would I be entitled to the 1% discount?
 
Hi
Permant TSB is the cheapist at the mo and they will let you pay off the loan early but the sometimes get the Garage to fill out some information
 
the guy who started O'Briens sandwich shops makes no secret of the fact that he used 4 car loans to give him the capital to start! :eek:
 
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