credit union car loan

DonkeyOfDeath

Hi there,

I recently applied for a car loan from the credit union. It was approved but they will only give me cheque if they can sign it to the car dealer for the exact amount. This means that if i buy in the uk they will only pay for the dealer and it will not include the vrt. Had anyone else encountered this when getting a car loan or is this just a locally made up rule.

Cheers,
Aidan

Atlantic Dawn

I know a couple years back I wanted a bank loan from AIB for a car and they wouldn't give me a cheque to pay a UK dealer.

When I got the car loan from the credit union I had no such problem. I either took the money in cash or got a cheque (I can't remember which) and lodged it in my current account in the bank so that I had it ready when I needed it to buy the car as I hadn't one picked at the time.

My loan was secured against savings though which might make a difference when it comes to this sort of thing.

bladespin

Looks like you applied for a car loan not just a loan (for a car)? There's a difference.

Guess they want the security to be on the car and not on your savings, any time I've borrowed from my CU (many times for cars and bikes) and never had any hassle, even over funded a few just to be safe.

phormium

They are just making sure the money is being spent on what the loan was applied for, there are tons of new regulations for credit unions now, much stricter than the way things were.

Does the total of the purchase price and the vrt equal the loan, if so, then I don't see why they would not be open to giving you two cheques, they may need to lodge the original loan cheque in your account and do two withdrawals for the separate amounts.

gemma1988

DonkeyOfDeath wrote: »

Hi there,

I recently applied for a car loan from the credit union. It was approved but they will only give me cheque if they can sign it to the car dealer for the exact amount. This means that if i buy in the uk they will only pay for the dealer and it will not include the vrt. Had anyone else encountered this when getting a car loan or is this just a locally made up rule.

Cheers,
Aidan

hi i applied for a loan on sat im just waiting to see if it gets approved they metioned to me about what dealer i wanted to purchace the car from but ill be looking at private sales not car dealers i had also planed on taxing the car for a year and paying insurance for the year and what ever i had left would be twards my sons communion day in may but if there only issuing cheques to dealers what would happen there? noone will except a cheque for a car and i wouldnt fancy handing someone a cheque and having to wait for it to clear not everyone is onest they could do a runner with your cash

Lexxie

Hi I too am wondering about this just recently applied and am awaiting a response, she asked me did I have a dealer I said I was still looking, found a good deal private though. Did any of ye have any issues getting the loan in the end?

dobsdave

DonkeyOfDeath wrote: »

Hi there,

I recently applied for a car loan from the credit union. It was approved but they will only give me cheque if they can sign it to the car dealer for the exact amount. This means that if i buy in the uk they will only pay for the dealer and it will not include the vrt. Had anyone else encountered this when getting a car loan or is this just a locally made up rule.

Cheers,
Aidan

Ive seen it before, did you explain about the UK/vrt? what was their response?