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Motor Finance: Advice

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  • 07-12-2006 12:21pm
    #1
    YeahBaby
    Closed Accounts Posts: 2 ✭


    Hi,

    I'm trading up my motor in January '07. I expect to pay between 23k to 25k. I expect to have to borrow the same amount. The trade in value received will pay off the current outstanding motor loan (€9k to €10k).

    I expect to pay the motor loan off over 48 months.

    I am wondering is what is the best motor finance source for someone in my position.

    My current motor loan is with a ccredit union at approximately 6.75% APR.

    Is car finance worth considering?

    Any advice welcome.

    Thanks


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    #2
    Owen
    Registered Users Posts: 12,683 ✭✭✭✭Owen


    For God's sake stop thinking APR. APR is a useless comparisson of what deal you're getting. Go to primafinance.ie and click on Motor Finance comparisson. You'll see lots of rates, and in there there are a few with lower APR that actually have higher monthly payments than the high APR loans.

    I work in a car dealer and we can pull APR out of our asses. APR is dependent on lots of factors including Setup Fees. Some banks charge 500 Euro Setup Fees, some charge as little as 60.

    Ask the Dealership/Bank what cost per thousand you're getting and watch them sweat. A good cost per thousand over 48 months would be about € 23.90. Car finance is the preferred option, because as they are making profit on the vehicle, with enough haggling, you'll get a great monthly payment from them - they'll use the finance as a tool to sell the car. The bank are only interested in making profit on the loan they give you.

    A great example is my sister. She works for AIB, and I was able to beat her Internal staff rate.


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