Car loan

vwhead

hello im new to boards.ie

im 19 years old and intrested in getting a loan off my local CU for a car. Im currently unemployed and on jobseekers allowance and part of the reason for getting a car is to help expand my field of looking for work the other is because i am a car enthusiast (not a boy racer). Ive been told that i need to be saving consistantly for 3 months and i have being doing that. Ive been saving 50 euro a week since september so im nearly 3 months saving and i nearly have €1000 i am looking for a loan of €5000 but i would settle for a bit less. I found out today that i need to prove of my income but seing as im unemployed how would i work around this ? i have done the homework and i know exactly what car i want i have an insurance qoute on the car printed and sent from the broker. I have added up the tax, insurance, loan repayments and i am wel able to afford it as it fits wel with my with my yearly income of €5000 and il have money left over for diesel and other bits. I still live at home and not in any hurry to move out (god help my parents)! can anyone tel me any probloms i might run into or the best way to go about it ? thanks for reading

dobsdave

The fact you have only been with the credit union 3 months and are unemployed means it is very unlikely you will get any loan in my opinion.

Aint Eazy Being Cheezy

Ooh.. problem is that for your first CU loan you may be restricted to twice your savings. In your case approximately 2k.

I'm assuming this would have to pay for car + insurance?

vwhead

dobsdave ive been told by the credit union themselves that i need to be saving for 3 months in order to apply for a loan so thats not the problom the problom is will i get the loan because im unemployed and if so how much ? and 'walkin talkin stevin hawkin yes this is correct and tax aswel the car i want a bora sport will cost me 2k alone and it being a 1.9 has a tax band of 610 euro so i kinda need a bit xtra to cover tax and insurance for the first year so i can save for the following year

dobsdave

vwhead wrote: »

dobsdave ive been told by the credit union themselves that i need to be saving for 3 months in order to apply for a loan so thats not the problom the problom is will i get the loan because im unemployed and if so how much ? and 'walkin talkin stevin hawkin yes this is correct and tax aswel the car i want a bora sport will cost me 2k alone and it being a 1.9 has a tax band of 610 euro so i kinda need a bit xtra to cover tax and insurance for the first year so i can save for the following year

Ok, so like I said in my post, the fact you are unemployed and have only been a member for 3 months with no history with means you will probably get no loan.
Maybe you could ask your parents to get the loan for you and you repay it.

micko4

On the dole saving 50 a week I'd keep that on to yourself..first loan theyl only give you double..so get a loan of a couple of hundred first and pay that back then go back and chance your arm for the 5 grand..

toyotaavensis

OP i dont think that anyone truely appreciates the cost of running a car until they actually buy one and run it. There is always some little thing that costs a few bob every few months to the expensive repair like a clutch that happens every few years.
Remember you will have a fuel bill as everyone drives their first car more than they planned. Servicing costs of the average driver run to a few hundred every year. Here is mine for 2013

Just to put it in perspective since last January,
I have done 13000 miles this year. That is about €2400 in fuel. €2400
Two tyres at €80 a pop - will be replacing two more next year €160
Three services (2@€75 one at €115) €265
Tracking €25
Unplanned trip to garage (gear linkage and gear oil) €125
NCT €55
Car wash incl underbody before NCT €12
Insurance €430
Tax €514
Wiper Blades €24
Deicer €10
Bulbs €20

These are just the things that I have receipts here for and it comes to €4040. There is probably more I dont remember. If you do less miles then you will have less to spend but I do 13000 p,a. and the average is 12000.

Just because you are saving fifty euro a week now does not mean you will be able to repay the loan. In my case excluding the cost of buying the car it costs about €77.69 a week to keep the car on the road. If this is where your savings of fifty per week goes here there is nothing to repay the loan with. In the previous year it was more as I had an expensive clutch replacement.

Also my main hobby is hurling and I go to a lot of matches. If I didnt have the car I wouldnt be going to them. These matches cost money on petrol and tickets which is an additional spend arising from having the car that I wasnt buying before I had my first car.

I urge you to be completely sure you have thought this true as if you fail to make the repayments you will have a bad credit rating for a long time to come. I dont think fifty euro per week will cut it OP.

However if after thinking it true you are sure it will all work then best of luck and happy motoring.

vwhead

yeah im gunna chance for 5k and if they refuse il get a couple of hundred and pay it back then start again and see toyota avensis trust me ive been into cars all my life i worked in garages for summers since i was 10 i know everything there is to know about maintaining a car i have my head on my shoulders and im confident i can pull it off thats kinda the reason why i wanted 5k so i will have money left by just incase **** hits the fan someday and im not stuck ive thought about everything repayments tax insurance diesel money etc and il still have a bit to throw by every week so i can safe up for servicing parts that i can do myself to keep the cost down. thats partly the reason aswel as to why im going for a 1.9tdi bora is because they run on the smell of diesel a cousin of mine had a bora and 20 euro wud do um the week and he done deliveries for 4 nights a week so whatever i spend on diesel i would be saving were as if i got a petrol yoke id be spendin more + cheaper insurance i know its bananas but i got an insurance qoute of 990 on a 1.9 my first car my own policy with no1 but myself on it still on a provisional and no no claims bonus how i managed it i dont know but so far its tickin all the boxes. dont forget insurance gets cheaper every year so thats more money to go towards parts or tax or whatever needs to be paid. i have been around cars my whole life as i said im a car enthusiast il have no problom keeping it goin and paying back the loan if everything runs good and if it doesnt it pays to have friends who are qualified mechanics and a few gagrages that owe me for helpin out when they were stuck ( before i left school ) so i hope i awnsered your opinions lads im not being scorpy or thick or anything sorry if i come across that way its just ive been wantin a car my whole life for them ta turn around and tel me at the end of the month to **** off is gunna be a big kick in the teeth so im just trying to find out how ta get on there nice side

discombobulate

You might also want to check with your parents if they would sign as guarantee for your loan.

PS use paragraphs in your posts as its very hard to read big blocks of text

kermitpwee

What is your total income in the week? 50 euro a week is a steep loan, you could get a loan for half that in the week, it might be more manageable. I think a mk2 golf or mk3 or vento might be more manageable imo. I know the young lads love the bora sport but it might stretch you a little far at the moment. Good luck

mfergus

Can't see them giving it to you being unemployed.

But if you've saved 1000 euro in 3 months I'd advise that you just keep saving

By my calculations it should take you another 4.5 months and you will have 2500. Then go and ask for 5000.

vwhead

sorry for the big paragraphs :P yes i was chattin to my dad and he said he will co sign it with me but if i get in **** its on my own head wich i understand im willing to bite the bullet and sell up if it gets to tight just need the signature

my income is 100 euro a week and if i get the 5k il be payin back 15 or 20 euro a week so its less than half so il have plently for insurance and tax nd diesel if i put it away each week and pay it off at the end of the year ahhh tbh it doesnt make a difference its still a 1.9 litre car nd diesel so its gunna be very little if any difference i might aswel just get the car i want that way il be more inclined to mind it i understand what your saying tho



ive been readin a few of these threads and there was a thing a lad put up from a credit union email he got stating how you can prove ur income and they mentioned social welfare reciepts so surely they consider it if they mentioned it ? ahh i know yea like if it does come to it il save abit more and then try again but just gunna chance it with what i have for now or maybe take out a loan of a couple of hundred nd pay it back by the books nd see where that gets me what do ye think ?

Supergurrier

You wont run a car on 100e a week.

Well not while maintaining any standard of life for yourself.

vwhead

i live at home with the oul pair still and i live right in the middle of town so the only time id be drivin is to a friends or a few laps of the town on a saturday night i wouldnt be goin mad with it insurance is very cheap surprisngly and its diesel so cheap to run just tax is abit steep but sure it evens itself out

christy02

vwhead wrote: »

i live at home with the oul pair still and i live right in the middle of town so the only time id be drivin is to a friends or a few laps of the town on a saturday night i wouldnt be goin mad with it insurance is very cheap surprisngly and its diesel so cheap to run just tax is abit steep but sure it evens itself out

Why are you getting a 1.9 diesel if that's all you want it for? Why not get a 1.4 bora. Cheaper to insure and run IMO.

christy02

vwhead wrote: »

i live at home with the oul pair still and i live right in the middle of town so the only time id be drivin is to a friends or a few laps of the town on a saturday night i wouldnt be goin mad with it insurance is very cheap surprisngly and its diesel so cheap to run just tax is abit steep but sure it evens itself out

Why are you getting a 1.9 diesel if that's all you want it for? Why not get a 1.4 bora. Cheaper to insure and run IMO.

vwhead

sorry thats just a routine kinda thing there will be other things like going to other towns droppin cvs around or if i haveta bring my oul lass somewhere diesel wud be the cheapest. not only that this is the problom with thinkin of cars more than a mode of transort i like many other young fellas treat them like children im very fussy when it comes to a car and i cant stand petrol vws lol

mfergus

vwhead wrote: »

sorry for the big paragraphs :P yes i was chattin to my dad and he said he will co sign it with me but if i get in **** its on my own head

Does he have any idea what he's signing? The point of his signature is so that if you get in the ****, he accepts it's on him!

OP. I think at this stage you have tunnel vision.
you're prepared to sign or do anything to get this loan. Even if it was 60 euro per week, you'd still say it's fine and try to justify it!
Although I can understand this as we were all in this boat at some stage.

vwhead

i know he will be taking it on his shoulders but the point i am making is i wouldnt let him i might be young but i wudnt but my parents in my mess if you understand

also im not worried about running costs all im asking for is advice on the best way to go about talking with the credit union proven it to them if you do the maths its not hard to see its within budget

smelly sock

vwhead wrote: »

i know he will be taking it on his shoulders but the point i am making is i wouldnt let him i might be young but i wudnt but my parents in my mess if you understand

also im not worried about running costs all im asking for is advice on the best way to go about talking with the credit union proven it to them if you do the maths its not hard to see its within budget

Keep chasing your dreams kid.

The guys are correct though. No matter what your income is they will only give you a small loan for starters.

Eg,

I got 700 for my first loan. After that I got 7,000.

vwhead

when cars mean more to ya than just a way from a to b ull understand my impatients lol yea someone mentioned a small loan first and then ask so maybe il do that nd see then thank anyway for the advice and sorry for the arrogance

adam88

Don't really want to read through all the previous comments but this sh1t about double your savings is bull. It depends on the credit unions. If you live in a huge town like Tralee that loan would have a good chance of getting through. However if you live in the sticks it would be a little harder. Fair play to you for doing your homework and saving away.
What you need to so is get to the credit union and just apply. The worst they can say is NO

vwhead

what would the chances be in longford town im right in the town ? yeah thats what im gunna do but need to wait for these 3 months to be up before they will even let me apply

Scortho

What's gone wrong with this country when a diesel bora has became a car enthusiasts ideal car? :mad:

Op I'd get a petrol. You'll pay a seriously high premium for a diesel over the same model petrol, and with your milage you won't get that back for long and many a day. Unless your doing 20,000 miles plus a year (in which case you've seriously underestimated the amount of fuel needed) there isn't much point in having diesel.
Yeah it might be 5 cent a litre cheaper to buy at the pump, but if you've to pay a higher price of say a grand over an equivalent petrol bora, that's a lot of 5 cents that's needed to make it worthwhile.
Also you'll pay a hell of a lot more in tax, to drive a car that's slow as ****. I'd be seeing if I could get a quote on a 1.8 turbo

vwhead

trust me the diesel option is way cheaper than the petrol i got a qoute of 990 on my own policy on a diesel bora then i tried the same company and details on a 1.3 corrolla g6 and they wanted 2500 grand off me so theres ur savings straight away and yeah the fuel is abit cheaper but it has better mpg than a petrol version and way more power. and i wudnt even get the sniff on insurance on a 1.8 litre petrol car diesel is cheaper to insure no matter the engine sizes

_Kaiser_

OP the only one who can tell you how much you can get, or if you'll even get a loan at all is your credit union. None of us here can answer that as it depends very much on the credit union themselves as well as your income and saving history.

The reality is that under your current circumstances, the chances are you won't get a loan unfortunately. If your dad applies for it/co-signs yours that may change but again that's up to the credit union.

As for the choice of car, you say that you're not a boy racer and then talk about doing laps of the town and wanting the stereotypical 1.9 TDI (old model Passat or Golf I'm guessing) that's so common among that age group. Even if you yourself AREN'T into acting the eejit, an insurer will look at you, your age, and the car, and charge you a fortune for it - if they even quote you at all.

I'm sorry if all that sounds harsh but it's the likely outcome. If you're serious about getting on the road you'd be far better trying for a smaller 2/2.5k loan and getting something like a Fiesta/Yaris etc.. especially given your current unemployment. A 1.9 TDI Passat isn't cheap to run - I had one and my ex had one as well, and there's a lot more to them than just putting diesel into it.

Anyway, thats my 2c on it

kermitpwee

Scortho wrote: »

What's gone wrong with this country when a diesel bora has became a car enthusiasts ideal car? :mad:

Op I'd get a petrol. You'll pay a seriously high premium for a diesel over the same model petrol, and with your milage you won't get that back for long and many a day. Unless your doing 20,000 miles plus a year (in which case you've seriously underestimated the amount of fuel needed) there isn't much point in having diesel.
Yeah it might be 5 cent a litre cheaper to buy at the pump, but if you've to pay a higher price of say a grand over an equivalent petrol bora, that's a lot of 5 cents that's needed to make it worthwhile.
Also you'll pay a hell of a lot more in tax, to drive a car that's slow as ****. I'd be seeing if I could get a quote on a 1.8 turbo

Young lads want the diesel for the booo! Anyway the 1.4 in the bora is a total ****e of an engine, worst engine of all time. Also there is no accounting for taste. I work with teenagers and they all want vag, simple as that! early twenties its jap and rwd.

vwhead

i think you should just deleta that comment read over the thread and try again

vwhead

Young lads want the diesel for the booo! Anyway the 1.4 in the bora is a total ****e of an engine, worst engine of all time. Also there is no accounting for taste. I work with teenagers and they all want vag, simple as that! early twenties its jap and rwd i could not agree with you more kermit ^^^^

veetwin

Scortho wrote: »

What's gone wrong with this country when a diesel bora has became a car enthusiasts ideal car? :mad:

The same country that pays it's unemployed 19 year old guys enough to consider buying and running a car even though by his own admission he only needs it for doing laps of the town on a Saturday night:rolleyes:

vwhead

kermit you got a hole in one there lol

Scortho

kermitpwee wrote: »

Young lads want the diesel for the booo! Anyway the 1.4 in the bora is a total ****e of an engine, worst engine of all time. Also there is no accounting for taste. I work with teenagers and they all want vag, simple as that! early twenties its jap and rwd.

I'm 21 and bought an alfa v6, I'd know most of my friends certainly wouldn't have an interest in Japanese, bar one or two who like Japanese cars. Feck most of my friends are still going around in corsas and polos.
The golf tdi has became the new civic for young lads into felting I suppose.

vwhead

yeah wel if it wasnt for the lads that ****ed up the country when i was a kiddie i probaly wouldnt be unemployed right now would i ?

kermitpwee

Scortho wrote: »

I'm 21 and bought an alfa v6, I'd know most of my friends certainly wouldn't have an interest in Japanese, bar one or two who like Japanese cars. Feck most of my friends are still going around in corsas and polos.
The golf tdi has became the new civic for young lads into felting I suppose.

Look I live in the west of the country, young lads want vag and then jap later. Maybe its different in the city:) Down here its boras golfs ventos passats and lexus and altezza. Its young lads, its great, they need to express themselves. Hopefully they wont kill themselves, spinning round the town is great craic for them and sure what harm are they doing. Anyway good luck with the alfa, proper order!

adam88

vwhead wrote: »

what would the chances be in longford town im right in the town ? yeah thats what im gunna do but need to wait for these 3 months to be up before they will even let me apply

No I mean it depends on your area and what. Size credit union is there etc

_Kaiser_

vwhead wrote: »

yeah wel if it wasnt for the lads that ****ed up the country when i was a kiddie i probaly wouldnt be unemployed right now would i ?

Look, I know it's frustrating but there's no point giving out to people because you're not getting the answers you want to hear.

I could tell you: Sure, you'll get 5k easy and you will have no bother running a 10-15 year old VW on €100 a week ... but the fact is that that's not how it is.

The only ones who can tell you what you will/won't be able to get in this case is your credit union and insurance company.

vwhead

thats very easy to say when you probly have a job ? i dont want to be sittin on my arse all day but i have no choice theres nothing out there i am sick puttin out cvs and watchin them being thrown in the bin before i even leave the place. the way i see it is i have nothing to lose havin a car will just increase my chances of work outside of town that others mighnt be able to reach. why should i wait for the country to get better or wait til i have a job before i start having fun ?

vwhead

im not getting frustrated because im not getting the awnsers i want im getting frustrated because ur saying i shouldnt be able to enjoy myself because im unemployed and when your comment is completly off topic thats what im gettin frustrated about

vwhead

ok cheers adam

Scortho

vwhead wrote: »

thats very easy to say when you probly have a job ? i dont want to be sittin on my arse all day but i have no choice theres nothing out there i am sick puttin out cvs and watchin them being thrown in the bin before i even leave the place. the way i see it is i have nothing to lose havin a car will just increase my chances of work outside of town that others mighnt be able to reach. why should i wait for the country to get better or wait til i have a job before i start having fun ?

You could always try and go to college? Chances are if you're able to get the full rate of dole for a person you're age, you'd get a grant to go to college.
Then before the country recovers you'd have better job opportunities other than working in the non skilled sector of society.

_Kaiser_

vwhead wrote: »

thats very easy to say when you probly have a job ? i dont want to be sittin on my arse all day but i have no choice theres nothing out there i am sick puttin out cvs and watchin them being thrown in the bin before i even leave the place. the way i see it is i have nothing to lose havin a car will just increase my chances of work outside of town that others mighnt be able to reach. why should i wait for the country to get better or wait til i have a job before i start having fun ?

I was unemployed myself a few years back for a while so I know exactly how frustrating it is trying to find something and having your time wasted by recruitment agencies and so on. Truth be told I almost gave up myself towards the end but then I was lucky enough to find something again.

I do agree that living in the country without a car is a pain in the ass, but unfortunately your current circumstances make it unlikely that you'll get what you want - I'm not saying that to be a pryck but that's just how it is now

Maybe - depending on the jobs you're looking for - you should be thinking about moving somewhere else where you might have a better chance of getting one and then you WILL be able to spend money on the things you want

Scortho

vwhead wrote: »

im not getting frustrated because im not getting the awnsers i want im getting frustrated because ur saying i shouldnt be able to enjoy myself because im unemployed and when your comment is completly off topic thats what im gettin frustrated about

He's advising you that it'll be very difficult to run a car properly on a wage of 100 a week.

vwhead

im not even a year out of leaving cert and i didnt have secondary school easy im in no rush going back to eduacation + majority of my mates have gone to college and done course and still ended up back on the dole

Nino Brown

I recently got a credit union loan for a car. The loan was for about 1/6 of my annual salary, and it was for 5 times the amount of savings I had in my account.
I was expecting it to be a done deal when I walked in, but they had to think about it, they told me to go home and called me later to tell me it was approved. Anytime I've got a loan before I walked out with the cheque straight away.
I can't see them giving you a loan that size with your income, they're being very careful now. I would guess the most you'd get is X3 your savings.

vwhead

i know it will be difficult scortho theres nothin in life thats easy and im aware but i dont drink dont smoke dont pay rent dont do anything other than mess around with cars so why wudnt i be able to ? and if i find a job all the better

Nino Brown

Scortho wrote: »

You could always try and go to college? Chances are if you're able to get the full rate of dole for a person you're age, you'd get a grant to go to college.
Then before the country recovers you'd have better job opportunities other than working in the non skilled sector of society.

Yeah but you can't pull chicks with a degree!

vwhead

cheers for that nino if i got 3500 id be happy it wud cover most stuff

_Kaiser_

vwhead wrote: »

im not even a year out of leaving cert and i didnt have secondary school easy im in no rush going back to eduacation + majority of my mates have gone to college and done course and still ended up back on the dole

At the risk of getting completely off topic for a Motors forum, I totally agree that current government policy seems to be about forcing people like you and your mates to emigrate than giving them a chance to live/work here and it's absolutely scandalous - something the rest of us should remember when TD's and Councillors arrive at our door in a few months canvassing! FF may have wrecked the place, but FG have only made things worse.

Anyway, as I said I'm really not trying to be a prick about it but I can't see you running a 1.9 TDI VW, taxing it (€200 every 3 months or €710 for the year), insuring it (another grand upwards maybe?), putting diesel in it, and having enough left to fix it when it goes wrong (as it will) .. never mind having enough left to feed yourself, meet the lads for a pint, take the gf out, buy clothes etc

I agree a car would help with the job hunting given where you live, but the cost of running one is not cheap no matter how much you're making as anyone here will tell you.

I think your best bet is to go back and get your exams and get a small, cheap car for now.. then in a few years (and I know, it seems like forever but it's really not!) you will hopefully be able to buy something much nicer than a 10/15 year old Passat/Bora/Golf AND still have money left over for yourself.

tony1985

No

Scortho

Nino Brown wrote: »

Yeah but you can't pull chicks with a degree!

Plenty of chicks in med school! :cool:

Nino Brown

Why are people in the motors forum trying to talk the guy out of buying a car? He lives at home, I'm sure his parents won't kick him out or let him starve. If he doesn't have the cash to go out drinking, the so be it. I'd rather have a car than drink. You're right that it's going to be a stretch, but if you know your way around a car servicing and repairs isn't much. I say go for it OP, you're only young once. There's plenty in the dole pissing it against a wall or putting it up their nose, you could do worse than buying a car.