Car finance

mhaire_s

Hi,


Well I took the plunge - I bought a car from a garage. Yippee - freedom of movement etc, etc...
I'm now looking for finance for €10,000 bahhh, humbug! The garage quoted me a fixed rate of 11.96% over 3 (36 months) years (that's €311 pm - total cost of interest = €1196). Personally I think that's pox. It's from GEMoney.
Anyone know of any good websites that I can show around - kind of the finance equivalent of insure.ie/ ???
I'm sure that I can get better....


Oh BTW check this out folks. The sales guy say that there is:
a. A loan "documentation" fee of €72
b. A loan completion installment of €63.49

He says that this is pretty normal from the banks! Christ, have you ever
heard of anything so fracking stupid! Anyone know of any banks that bypass this kind of muppetry (and just do interest)?

Any comments.suggestions/website recommendations - much appreciated.

Maith agat,
Mhaire.

Darando

Ask him to waive the documentation fees, be serious/stern about it, after all they are asking you to pay for the privilege to finish paying them!!
The will drop it if you kick up enough fuss.

otherwise if he defo wont drop it then make sure you get full tank of petrol & mats to make up the cost.

As for the rate of the loan - make sure that you look around you find out the overall cost of the credit - not just APR - thats only the rate for each year - not the overall interest rate for the loan/finance. Also you can either go the hire purchase route or a loan. Ring around the banks with your own bank last - ask them their rate and if someone has quoted you a lesser amount, tell them and see if they will match it. - but as i said ask the overall cost of the credit - not the rate as they change APR rates with term lenghts.

Anan1

Have you asked your own bank? Start there, and then call the other banks too.

drive3331

Just checking the numbers you quoted and they don’t make sense with 11.95% interest rate (money and interest rates are not my thing:) ).

From GE money website they are quoting 10,000 euro @8.8% apr giving repayment per month of 315.49 euro.

Tesco's website, are quoting 10,000 euro @7.5% apr giving repayment per month of 309.49 euro.

All the other banks and borrowers have similar calculators on their sites so you can compare rates and repayments.

The other thing to be careful about is the financing you are arranging through the garage. If it’s a hire purchase agreement it means that the car belongs to GE or whoever the agreement is with until you make your last payment.

As said by the other posters, ask your bank first and shop around.

colm_mcm

you should be aiming for 8%. GE or Bank of Scotland will do HP for this. The salesman is ripping you off at 11.96%

drdre

what garage is quoting you 11.95%.thats a rip off.i got finance this time last year for 6.5% from a garage.that was with me haggling them down alot and i knew someone in the garage.

oleras

drive3331 wrote:

If it’s a hire purchase agreement it means that the car belongs to GE or whoever the agreement is with until you make your last payment.

.

AFAIK once more than half is paid, its legally yours.....

Eoin

drive3331 wrote:

The other thing to be careful about is the financing you are arranging through the garage. If it’s a hire purchase agreement it means that the car belongs to GE or whoever the agreement is with until you make your last payment.

I think you own the car after you have paid back 60% or so. Either way, this really shouldn't be a problem unless you decide to sell the car privately down the road; in which case you would either need to settle the outstanding amount before hand (if the seller has any sense, s/he won't take the car until it has been settled).

Edit: mhaire_s - if you are a member of a credit union, then give them a shout - they can offer good rates.

Darando

As was said already HP means the provider owns the car until the final payment, whereas a loan means you own it from the beginning.

Loans -

Tesco (APR 7.5% fixed over 3 years) - ~€11,198 overall

Bank of Scotland do (7.2% fixed 3 years)- ~ €11,148 overall


Thinks they are the best rates around for a loan (and its fixed - interest rates prob heading up), nearly sure you can pay it off early also for a small fee.

not sure about HP rates.

Eoin

Darando wrote:

As was said already HP means the provider owns the car until the final payment, whereas a loan means you own it from the beginning.

Loans -

Tesco (APR 7.5% fixed over 3 years) - ~€11,198 overall

Bank of Scotland do (7.2% fixed 3 years)- ~ €11,148 overall


Thinks they are the best rates around for a loan (and its fixed - interest rates prob heading up), nearly sure you can pay it off early also for a small fee.

not sure about HP rates.

I think it means that the loan is secured against the car, and the car can be reclaimed - but I think that this can't happen if you owe less than 40% or so of the loan. HP rates also tend to be quite competitive, so don't rule them out immediately.

Darando

eoin_s wrote:

I think it means that the loan is secured against the car, and the car can be reclaimed - but I think that this can't happen if you owe less than 40% or so of the loan. HP rates also tend to be quite competitive, so don't rule them out immediately.

AFAIK - Unsecured - the lender has no entitlement to any of the borrower's assets in the event of the borrower failing to make the loan repayments. Normally carries a higher interest rate than a secured loan.

But check the small print!!!!! a "car loan" may have different terms than a "personal" loan"

nearly sure that most are unsecured though . Secured is usually a mortage etc..

Eoin

Darando wrote:

AFAIK - Unsecured - the lender has no entitlement to any of the borrower's assets in the event of the borrower failing to make the loan repayments. Normally carries a higher interest rate than a secured loan.

But check the small print!!!!! a "car loan" may have different terms than a "personal" loan"

nearly sure that most are unsecured though . Secured is usually a mortage etc..

Sorry - I meant the HP loan is secured against the car; you are dead right about a personal loan.

mhaire_s

BOS, Ireland seems to be the best - they are offering me monthly replayment of €308.65 - that the best I have found so far. Don't think there are any "funny" documentation payments. Not sure if its a personal loan or car loan.
From what ye have said personal seems to be the best, better than car loans (they can't reclaim the car)

Mhaire

andyeire

Most car finance deals can cause problems if you decide to change cars before the end of the finance term .You have to pay all the interest even if you pay back the finance early.A bank loan or credit union loan is much more flexable.