Advertisement
Please note that it is not permitted to have referral links posted in your signature. Keep these links contained in the appropriate forum. Thank you.

https://www.boards.ie/discussion/2055940817/signature-rules
Help Keep Boards Alive. Support us by going ad free today. See here: https://subscriptions.boards.ie/.
https://www.boards.ie/group/1878-subscribers-forum

Private Group for paid up members of Boards.ie. Join the club.
Hi all, please see this major site announcement: https://www.boards.ie/discussion/2058427594/boards-ie-2026

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

  • 22-05-2016 07:38PM
    #1
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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.


«1345

Comments

  • #2
    colm_mcm
    Registered Users, Registered Users 2 Posts: 73,328 ✭✭✭✭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.


  • #3
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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..


  • #4
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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.


  • #5
    billie1b
    Registered Users, Registered Users 2 Posts: 3,897 ✭✭✭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.


  • #6
    Nody
    Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,647 CMod ✭✭✭✭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.


  • Advertisement
  • #7
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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


  • #8
    colm_mcm
    Registered Users, Registered Users 2 Posts: 73,328 ✭✭✭✭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.


  • #9
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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.


  • #10
    colm_mcm
    Registered Users, Registered Users 2 Posts: 73,328 ✭✭✭✭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.


  • #11
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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.


  • Advertisement
  • #12
    brightspark
    Registered Users, Registered Users 2 Posts: 2,637 ✭✭✭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?


  • #13
    colm_mcm
    Registered Users, Registered Users 2 Posts: 73,328 ✭✭✭✭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?)


  • #14
    Nody
    Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,647 CMod ✭✭✭✭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.


  • #15
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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.


  • #16
    brightspark
    Registered Users, Registered Users 2 Posts: 2,637 ✭✭✭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?


  • #17
    Marcusm
    Registered Users, Registered Users 2 Posts: 11,126 ✭✭✭✭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.


  • #18
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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?


  • #19
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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...


  • #20
    Tasden
    Closed Accounts Posts: 4,166 ✭✭✭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.


  • #21
    carzony
    Registered Users, Registered Users 2 Posts: 2,852 ✭✭✭carzony


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


  • Advertisement
  • #22
    unklerosco
    Registered Users, Registered Users 2, Paid Member Posts: 7,830 ✭✭✭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..


  • #23
    brightspark
    Registered Users, Registered Users 2 Posts: 2,637 ✭✭✭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:)


  • #24
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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


  • #25
    unklerosco
    Registered Users, Registered Users 2, Paid Member Posts: 7,830 ✭✭✭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.


  • #26
    Toyotafanboi
    Registered Users, Registered Users 2 Posts: 12,903 ✭✭✭✭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.


  • #27
    Del2005
    Registered Users, Registered Users 2 Posts: 19,148 ✭✭✭✭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.


  • #28
    LpPepper
    Registered Users, Registered Users 2 Posts: 638 ✭✭✭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.


  • #29
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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!


  • #30
    Mccabe96
    Registered Users, Registered Users 2 Posts: 187 ✭✭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.


  • Advertisement
  • #31
    carzony
    Registered Users, Registered Users 2 Posts: 2,852 ✭✭✭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.


Advertisement
Advertisement