Best place for a 19 year old employed to get a loan for car and insurance?

Mccabe96

Would the credit union be the best possible way to get a huge amount of cash for a loan? I've joined the credit union about a month ago and am saving 50 euro a week in it, it comes out of my bank and most weeks im going up and giving another 50 so saving 100 most weeks, any idea how much of a loan they would give me or is anywhere else better for loans? I'm 19 and have a full time job.

colm_mcm

The likes of bank of Ireland do insurance through direct debit, as do a lot of brokers.
Not much point taking out a loan with a longer term of a year to cover insurance.. I'd keep the two separate.

Mccabe96

colm_mcm wrote: »

The likes of bank of Ireland do insurance through direct debit, as do a lot of brokers.
Not much point taking out a loan with a longer term of a year to cover insurance.. I'd keep the two separate.

My current weekly wage wouldn't be able to cover insurance and then my every other needs, it's only about 340 a week. So a loan would be the only way possible for me to actually get a car and insurance etc..

Mccabe96

OSI wrote: »

I seem to remember a first time loan from most credit unions is limited to something like 3 to 4 times your current shares?

I was told I just have to save for 13 weeks and then you could apply for a loan, the minimum for a car loan is 3,000 the credit union told me.

billie1b

Most banks/finance companies wont give you a car loan or finance unless you earn €18,000 per annum after tax, you will also need a 20% deposit to put down on the loan. With a credit union your first loan with them is only double of what you have in your shares to check your repayments and if you'll keep up with the terms of it.

Nody

Mccabe96 wrote: »

My current weekly wage wouldn't be able to cover insurance and then my every other needs, it's only about 340 a week. So a loan would be the only way possible for me to actually get a car and insurance etc..

Then how do you expect to be able to cover all the costs of the loan and running the car?

Insurance at 19 would be around 2.000 EUR a year if lucky so about 40 a week
Car let's say 3.000 EUR loaned so let's say another 40 a week
Fuel adds another 30 a week (joys of driving etc.)
Maintenance on a older car will add another let's say 500 EUR at 10 a week (and that's hoping nothing major goes wrong!)

So already for your car you'd be looking at 120 EUR a week in additional cost and today you can't consistently make 100 EUR in weekly savings. I simply don't see how you're going to manage it and that's assuming nothing major goes wrong; what if you end up with a 2k repair bill on the car?

Even if we'd lower the mortgage rate you have no margin basically which is why I'd go over your spending another round before getting yourself a car on top of it all.

Mccabe96

billie1b wrote: »

Most banks/finance companies wont give you a car loan or finance unless you earn €18,000 per annum after tax, you will also need a 20% deposit to put down on the loan. With a credit union your first loan with them is only double of what you have in your shares to check your repayments and if you'll keep up with the terms of it.

So basically I would need to be saving in the credit union for a year or two before even applying to get a loan of about 6,000-7,000? I only have about 550 in it right now as I only started it recently

colm_mcm

You're basically financing your lifestyle if you take out a long term (more than 12 months) loan to cover your insurance.
Even if you finance the insurance over 2 years, you'll still be paying it when it comes time to renew next year.
You have to ask yourself if you'll end up working for your car.

Mccabe96

colm_mcm wrote: »

You're basically financing your lifestyle if you take out a long term (more than 12 months) loan to cover your insurance.
Even if you finance the insurance over 2 years, you'll still be paying it when it comes time to renew next year.
You have to ask yourself if you'll end up working for your car.

That's very true, but unfortunately I need to get my own car ASAP as i'm 19 years old now and can't keep relying on my parents to get up at 6am and drop me to work, I need my own car to get myself there, and when I get the car get myself an even better job with better pay, also need a B licence to join the fire brigade as i;ll be joining the next time they recruit.

colm_mcm

Do you have a full licence yet?
Is getting yourself a better job really dependant on having a car?
what if a great job came up where you'll need to move? You won't be able to afford rent because you're paying off your car.

I'm not trying to out a downer on the whole idea, just you're making a financial commitment for the next few years that rules out things like travel, holidays, lifestyle, flexibility.

Mccabe96

colm_mcm wrote: »

Do you have a full licence yet?

unfortantly no, you need to have your own car etc before even applying for a full licence, only doing my theory test on Tuesday then my 12 lessons, I have about 1,000 euro saved up for it all but then when I get the lessons over and done with it's the problem getting insurance and a car.

brightspark

Mccabe96 wrote: »

That's very true, but unfortunately I need to get my own car ASAP as i'm 19 years old now and can't keep relying on my parents to get up at 6am and drop me to work, I need my own car to get myself there, and when I get the car get myself an even better job with better pay, also need a B licence to join the fire brigade as i;ll be joining the next time they recruit.

If you haven't a licence yet, who will accompany you to work each morning?

colm_mcm

You don't have to own a car to apply for a full licence, of course you need practice driving to pass the test, but a learners permit is for learning to drive under instruction. It's not fair commuting to work (on your own I'm guessing?)

Nody

Mccabe96 wrote: »

unfortantly no, you need to have your own car etc before even applying for a full licence, only doing my theory test on Tuesday then my 12 lessons, I have about 1,000 euro saved up for it all but then when I get the lessons over and done with it's the problem getting insurance and a car.

So increase the insurance cost by about 1k EUR and add on top of that the car tax I forgot earlier at another 600 EUR a year.

So go over your budget how you're going to save 150 EUR a week on your current salary every week (and yes that means you'll need to cut other costs) to pay for your car.

Mccabe96

brightspark wrote: »

If you haven't a licence yet, who will accompany you to work each morning?

I'll just drive myself on the learner permit, the guards don't seem to care about driving alone on them were i come from, so i'm lucky.

brightspark

Mccabe96 wrote: »

unfortantly no, you need to have your own car etc before even applying for a full licence, only doing my theory test on Tuesday then my 12 lessons, I have about 1,000 euro saved up for it all but then when I get the lessons over and done with it's the problem getting insurance and a car.

When did the requirement to have your own car before you can apply for a license come in?

Marcusm

Mccabe96 wrote: »

unfortantly no, you need to have your own car etc before even applying for a full licence, only doing my theory test on Tuesday then my 12 lessons, I have about 1,000 euro saved up for it all but then when I get the lessons over and done with it's the problem getting insurance and a car.

Not sure why you think that you need to have your car before you can get a full licence. Plus it you've only got a learner's permit, who is going to accompany you at 6am while you drive to work.

You're clearly trying to start out in life with very good aims/intentions. My advice would be to find another way to get to work and save up for lessons, a car and insurance. Getting caught driving unaccompanied would not assist you in joining the fire brigade.

Mccabe96

brightspark wrote: »

When did the requirement to have your own car before you can apply for a license come in?

I thought you need to own your own car before u can do your full licence?

Mccabe96

colm_mcm wrote: »

You don't have to own a car to apply for a full licence, of course you need practice driving to pass the test, but a learners permit is for learning to drive under instruction. It's not fair commuting to work (on your own I'm guessing?)

I thought you needed your own car to apply for a full licence, but once I do my 12 lessons and get the certificate I can't apply to do my full licence for 6 months so i;ll be on a learners permit for them 6 months...

Tasden

Mccabe96 wrote: »

I thought you need to own your own car before u can do your full licence?

Nope. You can use an instructors car on the day to do the test in.

carzony

Reading this thread makes me sad how expensive a first car has become

unklerosco

Save your money and follow the Bangernomics Thread and get urself a decent cheap car for under €1k with a years NCT.. Sorted.

You mentioned a loan of €6-7000, are you mad! Get a Micra, will last for ever, cost you around €500, sip petrol and be cheap to insure and tax. Save the rest of your money for travel and fun... This is coming from someone who at 20 got a loan for a car and spent 5 years paying it off and missed out on the J1, summers in Thailand and Australia and a crap tonne of other stuff cause I had to spend all my time working any job I could get to clear my debts. I also missed payments so messed up my credit history which stuck with me for years after I was done with it.. It was the biggest mistake I ever made..

brightspark

carzony wrote: »

Reading this thread makes me sad how expensive a first car has become

It was never cheap!

I learned to drive in my parents car, but even after passing my test and buying a cheap car I was still broke every week. (And when the car became a manageable cost, I got a mortgage which meant I was broke every month instead of every week :rolleyes:)

Mccabe96

unklerosco wrote: »

Save your money and follow the Bangernomics Thread and get urself a decent cheap car for under €1k with a years NCT.. Sorted.

You mentioned a loan of €6-7000, are you mad! Get a Micra, will last for ever, cost you around €500, sip petrol and be cheap to insure and tax. Save the rest of your money for travel and fun... This is coming from someone who at 20 got a loan for a car and spent 5 years paying it off and missed out on the J1, summers in Thailand and Australia and a crap tonne of other stuff cause I had to spend all my time working any job I could get to clear my debts. I also missed payments so messed up my credit history which stuck with me for years after I was done with it.. It was the biggest mistake I ever made..

I was looking to get a 2006-2007 Fiat Punto 1.2

unklerosco

carzony wrote: »

Reading this thread makes me sad how expensive a first car has become

Ha, I think it's cheaper now than it was when I was 19.. My first car was a mini, cost me £300. I should have checked the insurance before buying it as the cheapest quote I got was £5,500 (€6,983). I was 18 at the time, ended up selling the car on and waited another 2 years before getting a car.

Toyotafanboi

DrIt's gas in fairness.

A young lad, 19 on minimum wage, looking to make some kind of a start in life and buy himself a car. Doing the maths logically, he simply can't.

You do have to wonder what the craic is when getting a minimum wage job and buying a car to get there leaves you worse off than sitting on your hole on the scratcher all week...

Traditionally, right now you'd tell a fella to put 50% down on his insurance and do the rest over 10 installments and buy a car for €1500 ish for learning in and forget the loan idea, but now €1500 cars can't be insured by young people.

The only way to start driving in Ireland now is somewhat like going on to third level education, you have two choices; either forget it as a concept or send yourself into spiraling debt.

Del2005

carzony wrote: »

Reading this thread makes me sad how expensive a first car has become

It was a joke before though. Get provisional licence and drive for the rest of your life. At least now people are being taught the basics of driving. They could do with teaching some lane discipline though, then hopefully in 30 years multi lane roads might work as designed.

LpPepper

Mccabe96 wrote: »

I'll just drive myself on the learner permit, the guards don't seem to care about driving alone on them were i come from, so i'm lucky.

That would be illegal. And a nightmare if you ended up in an accident. How far is work ? You could consider a bicycle. Buying a car and working just to pay off the car and insurance defeats the purpose of working in the first place.

Mccabe96

LpPepper wrote: »

That would be illegal. And a nightmare if you ended up in an accident. How far is work ? You could consider a bicycle. Buying a car and working just to pay off the car and insurance defeats the purpose of working in the first place.

Work is about over 30 minutes in a car, so about an hour-hour and a half on a bike!

Mccabe96

Toyotafanboi wrote: »

DrIt's gas in fairness.

A young lad, 19 on minimum wage, looking to make some kind of a start in life and buy himself a car. Doing the maths logically, he simply can't.

You do have to wonder what the craic is when getting a minimum wage job and buying a car to get there leaves you worse off than sitting on your hole on the scratcher all week...

Traditionally, right now you'd tell a fella to put 50% down on his insurance and do the rest over 10 installments and buy a car for €1500 ish for learning in and forget the loan idea, but now €1500 cars can't be insured by young people.

The only way to start driving in Ireland now is somewhat like going on to third level education, you have two choices; either forget it as a concept or send yourself into spiraling debt.

It's sad to be honest with ya m8, it's all a money racket with these multi millionaire companies, trying to make as much money as possible that's all its about for them.

carzony

Del2005 wrote: »

It was a joke before though. Get provisional licence and drive for the rest of your life. At least now people are being taught the basics of driving. They could do with teaching some lane discipline though, then hopefully in 30 years multi lane roads might work as designed.

If they were serious about road safety they should introduce a national teaching scheme in schools, fas, training centres ect.. and it should be partly funded by the state. Wouldnt it be a great investment considering in a few years a massive % of drivers would have proper, regulated training.

The actual tests and lessons should be more comprehensive with motorway driving (for a start)on the curriculum aswell as many other driving related scenarios.

This act of driving around housing estates for a driving test should have ended years ago.

shietpilot

IMO you'd be daft to take out a loan to get on the road. I think you're too young to be dealing with loans and stressing yourself out. I was in your shoes 2 years ago and I got myself my first insurance policy by working through the summer holidays. I literally spent the whole summer saving every cent I earned and I didn't really go out or do much but every day I went to work working towards the goal of getting on the road.

At the end of the summer I had enough money to buy a road legal car, pay for the insurance in full and tax it for a year with some cash left over for fuel. I got the car, insured it, taxed it and began driving to college in September. I was working part time 1 day a week which covered fuel costs.

€340 a week is plenty to be saving up for car insurance. Don't bury yourself with loans, especially at your age. Too many people out there take the easy way out and sign up to all sorts with banks!

endacl

Mccabe96 wrote: »

That's very true, but unfortunately I need to get my own car ASAP as i'm 19 years old now and can't keep relying on my parents to get up at 6am and drop me to work,

I was in exactly the same position at your age. Luckily, somebody had invented the bicycle. Cheap initial investment, and maintenance came to about 20 quid a year. In a bad year.

Added bonus: You'll have to be as fit as a fiddler's fart to join the fire brigade. Cycling to work will get you that way.

endacl

carzony wrote: »

Reading this thread makes me sad how expensive a first car has become

Was always expensive.

carzony

carzony wrote: »

Reading this thread makes me sad how expensive a first car has become

It not though, people just dont do it properly.

You need to start at 17 and use the parents car and get a couple of years NCB as a named driver built up on that, get your own car at say 19 by which time you will have a full licence and 2 years named NCB and after that do your time in a 1.2 or under for a couple of years until you get a bigger car.

My sister is 24 and she only has her provisional a few months and she was insured on my 1.6 Golf for 170 quid additional or something. She should have started at 17 but its not crazy money to put someone as a named driver no matter what age once the car engine isnt massive.

As for the original poster, living at home with no bills you can live on 150 a week. Buy a car for 1500 quid, small car like a 1 litre.

carzony

Jasper Green Steamroller wrote: »

It not though, people just dont do it properly.

You need to start at 17 and use the parents car and get a couple of years NCB as a named driver built up on that,

.

Insurance have copped on to that trick at this stage and even getting insured on your parents policy is still crazily expensive. Actually, I think many insurance companies don't even do it anymore.

I do agree that you need to start off young though. I got my own car at 18 which was a 1997 corsa Been insured ever since with even a theft claim against me and my renewal this year was under 600 euro.. Only driving a 1.4 atm but still cheap considering the state the industry is in.

CIP4

I think the best option would be to save as much as possible every spare cent and cut back where you can obviously no one here knows your spending habits his much your spending and where but you should be able to save more than 50-100 a week out of 340 considering you are young and I'd assume have little commitments. In the meantime while you are saving get the theory do 12 lessons, and be ready for the test if possible get named on your parents car and try and have the test passed before you even go looking at cars. Then when you have about 5k saved get a car and insurance and all that.

I really don't see the benefit of having your own car now when you don't even have a full licence and technically shouldn't be driving unaccompanied. Saving is definitely the better policy to getting a loan. I passed my test first time without having my own car and I know loads of others who did also.

LpPepper

Mccabe96 wrote: »

Work is about over 30 minutes in a car, so about an hour-hour and a half on a bike!

What distance is it each way? My 12km commute by car would be 45mins to 1.5hrs at rush hour. By bike it's 30mins or less... Obviously if you're doing 20km plus or motorway driving then bicycle isn't applicable but otherwise it's the logical choice. Cheap and efficient

Gatling

Op you could be looking at nearly paying 3 grand on insurance alone then what ever tax and fuel costs and maintenance
If I was you I'd be banking a lot more of your wages and seeing what your bank will give you for a loan .

Mccabe96

Gatling wrote: »

Op you could be looking at nearly paying 3 grand on insurance alone then what ever tax and fuel costs and maintenance
If I was you I'd be banking a lot more of your wages and seeing what your bank will give you for a loan .

It's 200 a year road tax the car I'm looking at, insurance for about 2,000 and only about 20 euro petrol a week

colm_mcm

€20 petrol for 5 hours driving?
€200 tax? Aren't you looking at a Punto?

carzony

carzony wrote: »

Insurance have copped on to that trick at this stage and even getting insured on your parents policy is still crazily expensive. Actually, I think many insurance companies don't even do it anymore.

I do agree that you need to start off young though. I got my own car at 18 which was a 1997 corsa Been insured ever since with even a theft claim against me and my renewal this year was under 600 euro.. Only driving a 1.4 atm but still cheap considering the state the industry is in.

Its not a trick, currently getting insured as a named driver on a car is not crazy money. Sure you are not covered fully comp until you are over 25 so it really a win situation for them

Friend just got his 21 yr old gf insured on a 2002 golf gti named for an extra 250 euro, provisional licence.

OP,have you considered a moped until you save for the car? will at least get you out of the situation where your parents have to drive you to work?

Gatling

Mccabe96 wrote: »

insurance for about 2,000 and only about 20 euro petrol a week

I think you should read back on the many threads on here recently on car insurance for first time drivers ,
I'm in the same boat and getting quotes of 3k for a 1liter fiesta and I'm older

CiniO

Toyotafanboi wrote: »

DrIt's gas in fairness.

A young lad, 19 on minimum wage, looking to make some kind of a start in life and buy himself a car. Doing the maths logically, he simply can't.

You do have to wonder what the craic is when getting a minimum wage job and buying a car to get there leaves you worse off than sitting on your hole on the scratcher all week...

Traditionally, right now you'd tell a fella to put 50% down on his insurance and do the rest over 10 installments and buy a car for €1500 ish for learning in and forget the loan idea, but now €1500 cars can't be insured by young people.

The only way to start driving in Ireland now is somewhat like going on to third level education, you have two choices; either forget it as a concept or send yourself into spiraling debt.

Was it different in Ireland some years ago?
Was it easier for young people to start driving at reasonable cost?

It's interesting to read all that, but also it's sad to think that in Ireland, which is one of the highest GDP per capita countries in the world with great living standard, it's so hard for young people to start driving in their own car.

It looks like buying a car is not really a bother as €1500 will get you very reasonable yoke, and that's only really an equivalent to 1 month salary on minimum wage, so shouldn't be a problem for anyone. But paying multiple's of that in insurance (and tax in case of any nicer car) makes it prohibitory expensive for most.

For me when I was young and living in Poland, it was bit different.
I got my licence as early as I could. I did my lessons with instructor at age of 16, and applied for a test right on my 17th birthday, so had my full licence soon after that.
Insurance cost wasn't really a problem, but cost of buying a car was.
I was lucky enough that my grandmother offered to buy me one as a present after passing leaving cert at the age of 19. It was 4 year old Cinquecento Sporting, and it was pretty much my dream car. Some might think it's nothing special, its cost was about €4000, but in Poland then its cost was equivalent of about 2 years nett salary on minimum wage, or 1 year nett salary on average pay. So comparing to these days in Ireland, we are talking about car for about €30k. You could get cheaper ones, but you'd struggle to get anything reasonable for less than half that amount.
So in short words - cars were pretty much inaccessible for most young lads due to price of purchase.
Insurance though wasn't a problem at all.
Once I had a car, I could insure it myself for about €100 third party or €200 fully comprehensive, but I chose to add my dad to the policy so I could use his NCB, and ended up paying about €80 for fully comprehensive annual policy.
Hence it was only about 2% of car cost or only about 2.5 weeks pay on minimum wage, so in comparison to nowadays in Ireland, where young lads sometimes need to pay about 200% of car value in Insurance or more, or equivalent to about 2 month pay on minimum wage or more, it seemed very cheap. It also wouldn't be much more expensive if car was 2 litre or something...
No motortax as well.

carzony

Jasper Green Steamroller wrote: »

Its not a trick, currently getting insured as a named driver on a car is not crazy money. Sure you are not covered fully comp until you are over 25 so it really a win situation for them

Friend just got his 21 yr old gf insured on a 2002 golf gti named for an extra 250 euro, provisional licence.

OP,have you considered a moped until you save for the car? will at least get you out of the situation where your parents have to drive you to work?

I'm 24 and been covered fully comp for the last 3 years atleast?

In relation to your mates girlfriend, that's the cheapest quote i've ever heard for a provisional license on any car let alone a gti. When we called around a few weeks ago for my brother to get named driver on a 1.0 nissan pixo it was nearly the same price as getting him his own policy.. Many refued him given his experience.



It is more expensive now than it ever was to get on the road.

Some argue insurance is actually cheap? maybe it was but if you look at the added cost of petrol and your 12 lessons today it's gotta be much more expensive when comparing to 'years ago'.

hurleronditch

The only thing that's going to fit your budget and get you to work without pedaling yourself. You're able to drive on a provisional, without the expense of lessons, and much cheaper to ensure and run.

Embarrassing? Yes.
Sensible? Definitely.

hurleronditch

Sorry, I forgot to say it was a moped I was talking about!!

veetwin

carzony wrote: »

I'm 24 and been covered fully comp for the last 3 years atleast?

In relation to your mates girlfriend, that's the cheapest quote i've ever heard for a provisional license on any car let alone a gti. When we called around a few weeks ago for my brother to get named driver on a 1.0 nissan pixo it was nearly the same price as getting him his own policy.. Many refued him given his experience.



It is more expensive now than it ever was to get on the road.

Some argue insurance is actually cheap? maybe it was but if you look at the added cost of petrol and your 12 lessons today it's gotta be much more expensive when comparing to 'years ago'.

Not really. I bought my first car 22 years ago. Ok I didn't have the mandatory lessons and learned on my parents car so I had a full licence before buying.

My first car was a 8 year old Renault 5 which was nearly £4000. Insurance was £1600. Translate that into € and 22 yrs inflation and I suggest it is much cheaper nowadays. Cars in particular are much cheaper with €2000 getting you a fairly decent yoke. That wasn't always the case. Insurance for young males was always a killer.

The OP has no business getting a car. Bicycle or moped.

shietpilot

veetwin wrote: »

The OP has no business getting a car. Bicycle or moped.

Ah come on, that's so not true. With some saving it's easily possible to run and maintain a car!

veetwin

shietpilot wrote: »

Ah come on, that's so not true. With some saving it's easily possible to run and maintain a car!

Yes but the OP has little or no saving and his income is so small that he would be effectively working for his car.

Tasden

Op i would suggest you use the figures here to work out how much you would be paying out for the car- loan repayments, fuel etc as broken down by one of the helpful posters. Put that much into your credit union every week. You're prepared to be spending it on your car so it shouldn't be any hassle to do this. You'll get your savings up in no time and you'll know for sure if its financially realistic/feasible. You're currently getting a lift with your mam so its not like you're paying travel fees or anything. If it works out for you and the money is no issue then you'll have sufficient savings to actually take out the loan in a short while and you won't have financial uncertainty/doubt about ability to afford it.