Applying for car loan while paying back student loan?

robocode

Hi, I'm in my late twenties, in a good job. Unfortunately I still have quite an amount to pay back to AIB for loans taken out during college and to pay for a masters. I repay it monthly and never miss a payment. I need to get a car in the next few months, nothing extravagant, probably looking at ~€5k.
Will the existing student loan count against me or is it a case of if you can prove you can repay another loan while continuing to pay down the existing loan it's ok?
We'll hopefully be buying a house in the next two years, so I really hope a student loan doesn't count against me!

sparkynash

If you a good job and its only 5k your after save dont borrow.

robocode

Yeah I think you're right, ideally I'll save it but I was just thinking if it was an emergency and I had to get it sooner would it be ok. But I'd rather just pay cash and not add to my existing loan. I like seeing the loan amount going down each month, don't want to see it go back up

sparkynash

Its out of debt were trying to get not back into it.save your few pound and get the car and ya can bargain on the price with cash.

coylemj

sparkynash wrote: »

Its out of debt were trying to get not back into it.save your few pound and get the car and ya can bargain on the price with cash.

Is it really appropriate to apply macroeconomic principles to an individual who wants to borrow to buy a car if he can afford it?

If he borrows the money from the bank or the credit union he will be a cash buyer same as if it was his own money. I'm not sure how you can get a better deal with your own money rather than the banks - can the salesman in the dealer smell the difference? When people talk about a 'cash deal' buying a car they mean there is no trade-in, it has nothing to do with where the money is coming from.

OP, if you can afford the repayments and it's something that you need now rather than later, go for the loan and buy a car.

The student loan will not count against you when applying for a mortgage, provided the repayments are still manageable or you have cleared it by then. If as you say you have made every payment in time then the record of that loan will be a positive mark on your credit history - taking out a loan and paying it back on time is what a lending institution wants to see on your credit history, especially if you go to someone other than your own bank. A blank sheet or a record of missing payments or being late with credit card minimum payments is what would count against you.

robocode

Great to hear, thanks coylemj. I did receive my credit report from the Irish Credit Bureau last year and there were no marks against me which was good!