Getting a car loan

G-Money

Just wondering what the story is these days with getting a car loan. Are the banks lending at all? Or the credit union?

What's the story with getting a loan? Is it a certain amount times your savings? I know that's how it used to be in the credit union anyway?

My own situation is that I'm working in IT as a contractor, but unfortunately my savings are quite low at the moment. However over the next year I may need to think about changing my car. It's highly unlikely I'd be able to afford a new car so it would have to be a 2nd hand motor.

Just wondering what people do for car loans these days? It's been quite a few years since I bought this car and it was a lot less money that I'm probably going to need to spend next time.

Sorry for the newbie questions.

Berty

Credit unions are up in the air at the moment with Mr Noonan.

Banks are struggling because a car loan is normally unsecured. Finance houses are approving 78% of loans but I wouldn't advise this route.

The days of the bank manager knowing you are gone.

Just chance your arm if your credit is good with all the main houses on the same day as multiple requests will show up on your credit history on the same day.

Same day requests might give you a better chance.

bazz26

Generally Credit Unions are the ones that are still lending these days. However you will need to be a regular saver with them and they may require your savings as security against the loan which means you cannot withdraw your savings during the term of the loan.

Credit Unions will probably allow you to borrow about 3 times of what you have saved with them. They are also more flexible when it comes to if you have difficulties make repayments, ie you can temperarily arrange with them to just pay the interest only on the loan if you run into financial difficulties unlike a bank.

My advice is either call into them or give them a ring for more information, if you start regularly saving with them now then you have a good chance of getting a loan from them next year when you are ready to buy.

I got a loan this week of the credit union, twice the amount I have in savings. If you're a regular saver and have a record of paying back previous loans in good time and without too much arrears I'm sure they'll be willing to loan.

After the debacle I had with BOI over a student loan I swore blind I'd never get a loan off them again for anything...8 years later and I've still stuck to that!

I'd say credit union is the way to go. Try get your savings up a bit and put something like 20 quid in a week. Set up a standing order and you won't even notice it. If they see you can save regularly they'll trust you to pay them back. I see it that if you don't screw over the credit union, they won't screw you over. I've had many loans off them over the years and even if it kills me I make sure I make the repayments, and as a result they've always been good back to me.

challengemaster

http://www.cutimes.com/2011/09/18/irish-credit-unions-ordered-to-limit-loans

lau1247

had a loan approved back in march from AIB, so they are definitely still lending.. just probably taking less risk.. I've been with AIB since I was in primary school so they know my record..

Interestingly BOI had the cheapest rate but they didn't approve it even though I have a steady income (permanent position) and my outgoing per month was less than half of my income even after the loan repayment have been taken into account..

just pure madness and they didn't even give me a reason for the refusal, the guy on the phone at the time actually said that 'he can't provide me with a reason'.. The only thing I can think of is that I didn't an account with BOI but surely this is a good way to get me started to have a working relationship with them..

It's a hit and miss OP, no harm calling to see.. what's the worst that could happen?

Mc Love

Got a loan by saying I would be getting a mortgage shortly after first being refused for a loan, they werent long offering me the loan I wanted...SUCCESS!