Best form of car finance

Jivin Turkey

Looking to borrow about €20k to buy a car, and enquired in my BOI branch and got told I'd be looking at about 8.4% fixed over five years or 8.8% variable.

I'm importing a 320 diesel coupe from the UK, probably 2004 or 2005 with low mileage and my plan is (probably) to sell it after two years at Irish prices and use whatever profit I realise to fund something a bit fancier coupled with another loan. So I think I want to get the variable.

What other methods have people used to finance their cars? Or is anyone else getting better rates with other banks/lending houses?

galwaytt

Credit union - 6.5%, and on a reducing balance, the best by far.

Anan1

Jivin Turkey wrote: »

I'm importing a 320 diesel coupe from the UK, probably 2004 or 2005 with low mileage and my plan is (probably) to sell it after two years at Irish prices and use whatever profit I realise to fund something a bit fancier coupled with another loan. So I think I want to get the variable.

Profit?? Have you looked out the window any time recently?:)

L-M

galwaytt wrote: »

Credit union - 6.5%, and on a reducing balance, the best by far.

Got in there before me, has to be the best way.

Redsoxfan

Leaving aside the issue of whether you can make a profit or not, try and steer clear of hire purchase/contract hire/car finance/whatever they call it where you cannot sell the car until the finance is clear.

Credit Union was the cheapest when I was looking in February.

The Real B-man

Limerick-man wrote: »

Got in there before me, has to be the best way.

Yeah put in 10k Borrow 20K and still have that 10k when ya finished paying off the loan! :pac:

kippy

Credit Union for sure. Very easy to deal with in general and very flexible payment options.
Only thing is, if you dont have an existing account you generally have to have one open for a few months before you can apply for a loan and the first loan may be limited. That said Cu's generally operate within varying guidelines and rules so check out your local one if you havent already.
Kippy

Jivin Turkey

Anan1 wrote: »

Profit?? Have you looked out the window any time recently?:)

With the exchange rate the way it is, I'd be quite comfortable that I could manage to clear a profit on a 2005 320 in two years if I bought it for £12k now. You'd be paying almost €30k for similar models here!

Credit union is interesting, I never considered that at all. Am flexible with when I need to purchase the car so will look into this first thing tomorrow.

Thanks!

Orange69

cash

bazz26

Jivin Turkey wrote: »

With the exchange rate the way it is, I'd be quite comfortable that I could manage to clear a profit on a 2005 320 in two years if I bought it for £12k now. You'd be paying almost €30k for similar models here!

Think again mate, if you can buy one for £12k sterling in the UK then why would you pay €30k for one over here? Isn't that what you are doing, going to the UK because it is cheaper? Everyone else has the same idea.

And just because somebody is asking for €30k for one here doesn't mean they are getting it.

Remember cars are not investments. You could find yourself in negative equity very fast.

Anan1

Jivin Turkey wrote: »

With the exchange rate the way it is, I'd be quite comfortable that I could manage to clear a profit on a 2005 320 in two years if I bought it for £12k now. You'd be paying almost €30k for similar models here!

Credit union is interesting, I never considered that at all. Am flexible with when I need to purchase the car so will look into this first thing tomorrow.

Thanks!

You have figured in VRT, haven't you? Not trying to p1ss on your parade, but...

snowman707

bazz26 wrote: »

Remember cars are not investments. You could find yourself in negative equity very fast.

+1


i didn't think the credit unions were so competitive , I checked them out about 3 years ago & got a better rate from my own bank (AIB)

looks like they have changed in the mean time

jkb_dub

You could also try tesco.ie at 6.9% was the cheapest I could find when looking recently.