Car finance query

fozzy97

Hey, wonder if anyone could answer a question for me. Getting a car imported and originally had planned to pay by credit union loan, due to one thing or other there was a mess up so application was delayed. Was cleared for finance on the car but haven't signed up to finance or anything else but paid the deposit to bring car in. The finance works out over 2 grand dearer but got call earlier to say loan was passed. Can I use the money to buy car out or do you have to follow through on finance although nothings been signed etc? Thks

Water2626262

fozzy97 wrote: »

Hey, wonder if anyone could answer a question for me. Getting a car imported and originally had planned to pay by credit union loan, due to one thing or other there was a mess up so application was delayed. Was cleared for finance on the car but haven't signed up to finance or anything else but paid the deposit to bring car in. The finance works out over 2 grand dearer but got call earlier to say loan was passed. Can I use the money to buy car out or do you have to follow through on finance although nothings been signed etc? Thks

If the credit union is 2k cheaper why are you considering finance? Finance is probably front loaded too so it’s more expensive to clear off early too vs credit union loan. You aren’t locked into the car finance just because they approved you. Up to you to choose credit union or finance.

I’d imagine whatever rate the finance is you are getting gouged if it’s 2k more expensive than the credit union.

con747

You have not signed anything to tie you into a contract with the finance company? If so you can just buy it with your credit union loan.

What interest is the finance company charging. If you don't know, you should. CU's aren't the cheapest either.

Also, how have you imported it without paying anything so far. Have you factored VRT?

Depending on how much you are borrowing an post money seems definitely the cheapest rate above 20k. 5.9% on loans above 20k with no early repayment fees etc.

fozzy97

So it's a car sourcing company, the car is an English speck, they buy it, bring it in, register and get the Irish plates. The finance is just under 23 grand on a car of 20 grand. They just assumed I suppose about the finance, said id been cleared. Then credit union rang and said Loan was passed. It's 5.9 interest on the CU. No idea what the finance is but it's AIB I think. I paid the 500 to bring car in so assuming I can just use the case instead. I've never had finance on anything before, normally save and buy, only debt is mortgage, own my other car outright. It was a pal mentioned you don't own the car under finance till last payment either? It's just I wasn't sure if I would be locked into the finance even though nothing was signed yet.. Took me awhile to find the model/colour I wanted and intend on keeping it for the foreseeable. Thks for the advice

fozzy97

fozzy97 wrote: »

So it's a car sourcing company, the car is an English speck, they buy it, bring it in, register and get the Irish plates. The finance is just under 23 grand on a car of 20 grand. They just assumed I suppose about the finance, said id been cleared. Then credit union rang and said Loan was passed. It's 5.9 interest on the CU. No idea what the finance is but it's AIB I think. I paid the 500 to bring car in so assuming I can just use the case instead. I've never had finance on anything before, normally save and buy, only debt is mortgage, own my other car outright. It was a pal mentioned you don't own the car under finance till last payment either? It's just I wasn't sure if I would be locked into the finance even though nothing was signed yet.. Took me awhile to find the model/colour I wanted and intend on keeping it for the foreseeable. Thks for the advice

In fairness, I was doing the CU a misjustice, that's a decent interest. Well wear!

carfinder

fozzy97 wrote: »

So it's a car sourcing company, the car is an English speck, they buy it, bring it in, register and get the Irish plates. The finance is just under 23 grand on a car of 20 grand. They just assumed I suppose about the finance, said id been cleared. Then credit union rang and said Loan was passed. It's 5.9 interest on the CU. No idea what the finance is but it's AIB I think. I paid the 500 to bring car in so assuming I can just use the case instead. I've never had finance on anything before, normally save and buy, only debt is mortgage, own my other car outright. It was a pal mentioned you don't own the car under finance till last payment either? It's just I wasn't sure if I would be locked into the finance even though nothing was signed yet.. Took me awhile to find the model/colour I wanted and intend on keeping it for the foreseeable. Thks for the advice

The car sourcing company cant just apply for finance on your behalf. You must have given consent to apply for finance - if you have not given consent, this would be a fairly serious breach of your data protection rights

fozzy97

carfinder wrote: »

The car sourcing company cant just apply for finance on your behalf. You must have given consent to apply for finance - if you have not given consent, this would be a fairly serious breach of your data protection rights

No they did ask if I wanted to apply, I hadn't been cleared by CU at that stage. I put deposit down to bring car in but I haven't filled any paperwork as such which is why I wondered if I was tied into the finance. Thks

carfinder

fozzy97 wrote: »

No they did ask if I wanted to apply, I hadn't been cleared by CU at that stage. I put deposit down to bring car in but I haven't filled any paperwork as such which is why I wondered if I was tied into the finance. Thks

If you havent signed anything then I dont know how you could be contractually bound for e finance. sounds like your CU is the best option anyways

James Bond Junior

Finance is 23k on a 20k car. Do you mean the finance is costing you 3k?

carfinder

James Bond Junior wrote: »

Finance is 23k on a 20k car. Do you mean the finance is costing you 3k?

Sounds like a front loaded HP deal. How good or bad it is depends on the term

fozzy97

carfinder wrote: »

Sounds like a front loaded HP deal. How good or bad it is depends on the term

Never had finance ever on anything so I'd rather the credit union loan to be honest.. Although I've been told they won't be happy when I suggest the cash and might have to pay more too by paying in cash! Ye can't win