motor loan burden

T

tloan

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I took out a car loan (stupidly) 18 months ago for 15000 euro. My monthly repayments (60 months) are 336 euro. I have begun to save a much as I can each month so that I can have a deposit for a house. The car loan debt is making this very difficult. I need the car for work. Any ideas on reducing the loan repayments? The loan is with boi.
 
Well presumably the first point of call wopuld be to sell the car and buy a cheaper one. Currently trying to convince the OH this is a good idea for him to do too!!!

You should also shop around to make sure you have the lowest rates.

If neither of these are an option maybe you should look at putting the money you are saving off the loan and when that is paid off early save that amount each month to build you savings back up.
 
If you can make accelerated repayments (i.e. pay more than €336 p.m.) without any penalties (check the loan agreement terms & conditions) then this will clear the loan quicker and reduce your overall interest costs.

I don't understand the point about having taken this loan out stupidly - there's nothing stupid about borrowing money as long as you need to, don't have savings that you could use instead, you can afford the repayments and you shop around for the best deal on offer.
 
Perhaps get a settlement figure on the finance and try taking a loan out with your bank or credit union at a lower rate and do it over 60 months again, this would make the repayments lower.
 
sell the car, pay off the loan (I hope you can with the proceeds) but a a cheaper car. I have been driving cars that cost less then 2000 for the last 6 years and I'm fine. My current car cost 800 and it's being going strong for over 2 years.
 
You say you're saving for a deposit - I presume for a mortgage. Any loan repayments you are currently making will redue the amount of mortgage a lender will give you. So, your best bet would be to clear the car loan first then go look for the mortgage.

Look at a few mortgage calcs & you'll see how the car loan payments will effect the amt you can borrow on a mortgage.
 
first active have rate of 6.8% available this month.
 
Try to reduce the car loan rather than extend it to decrease your premiums to a) avoid paying interest over a longer term b) if you will be applying for a mortgage in the near future your current loans will affect the amount a lender may be willing to offer.
 
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