Declined for €10k car loan & don't understand..

I had a similar problem a few years ago when we bought our first house. We knew we could afford the loan to pay for a newer car but the bank didn't see that we could and kept on reciting affordability problems when we asked for a loan. So I had to prove them wrong.
I did up a pack, detailing our weekly/monthly expenses and gave them my logbook of spending for the previous year and they then approved the loan on the spot at a reduced interest rate.
Have you tried the credit union though? My local one are offering 6.99% on car loans which is a really good rate and they tend to take their time over applications I have found.
 
bacchus said:
oups, got my figures all wrong then.

I had a closer look at the limits and indeed banks seem to set it up between 30% and 40%.
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With two dependents, would the banks not lean towards the lower end of this range?

Also, what type of mortgage do you have - fixed, or tracker/variable. I think this may be significant in that banks might be pricing a couple of rate rises in on top of the 1600 a month you already pay.

You never mentioned whether your husband had an existing car-loan either.

As I calculate it, you'd be liable for half the mortgage (€800) plus a €200 car loan, on income of €2700 a month - that brings loan repayments up to 37% of your take-home pay, which is borderline.
 
The only loan we have is the mortgage (which is 3 year fixed with IIB), we own both our current cars outright and never had car finance. We have a loan with the credit union for hubbies car and some more money we borrowed for doing the house up but our credit union is not on the ICB and we pay them cash every week so in that sence we are okay.

I haven't contacted AIB again as I am still furious, but a joint income of €5,300 per month, €1600 on our mortgage and €1535 on childcare leaves us with €2165 disposable and our household bills are not that much so it's really annoying me. I really don't know where to turn now as I am afraid to apply to another crowd incase I am declined again and it's down on my credit record.
 
Mag2006 said:
The only loan we have is the mortgage (which is 3 year fixed with IIB), we own both our current cars outright and never had car finance. We have a loan with the credit union for hubbies car and some more money we borrowed for doing the house up
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humm...the above does not add up....
 
How is that??. I own my car outright, never owed a penny on it,(my bonus payment paid for the balance due when I originally bought it) hubbies car we only needed to borrow €7k off the credit union towards it in Feb and borrowed an extra €5k for the house. So, when you take income less mortgage less childcare it does add up and we are not mad spenders. We pay a cash amount to the credit union every Sat so we are well covered.
 
Panic over, got full approval from Tesco ten mins ago!!. Yippie and they are cheaper!!. Yippie and bye bye AIB!!
 
It does not add up.... in the context of the quote.
The only loan we have is the mortgage (which is 3 year fixed with IIB), we own both our current cars outright and never had car finance. We have a loan with the credit union for hubbies car and some more money we borrowed for doing the house up
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I make it at least 2 loans (one mortgage + one CU loan), and only one car is owned outright because of loan on the second...

So one can now only rightly ask if there is not other "unclaimed things" that would explain why you are getting refused for a very small loan with a good family income. It is somehow very strange IMO.


 
Nothing unclaimed Baccaus, the credit union loan is not secured on hubbies car so as far as our credit rating goes the only thing on it is our mortgage. I am very organised as regards finance, even have an accounts book that everything is recorded in and check everything. We have always ensured that we don't over borrow.
 
Car loan declined

Applied for a car loan last week thru a car dealer & it was declined. The loan was for 13k. My monthly income is 4k & my only major outgoing will be my mortgage payment of 1k/month. I asked for a reason why it was declined, the dealer told me that the banks normally dont tell the reason. Am I entitled for a reason from the bank? How can I get the reson from the bank?
 
VW bank are very good and quick approval, rates are excellent, any of the VW, Skoda, Seat dealers offer finance through VW bank and the rates are as low as 4.9% in some cases.
All online approval based on credit score so no hassle with paperwork etc..
I bought a car through them and it was done and arranged in 24 hours.
 
johnnygman said:
VW bank are very good and quick approval, rates are excellent, any of the VW, Skoda, Seat dealers offer finance through VW bank and the rates are as low as 4.9% in some cases.
All online approval based on credit score so no hassle with paperwork etc..
I bought a car through them and it was done and arranged in 24 hours.
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Isn't VW Bank Hire Purchase though, rather than a loan?

[broken link removed]
 
moneyhoney, I was wondering that too, are all garage-arranged finance HP rather than loan?? They seem to me to be. I would have always preferred avoiding HP but these days it seems easier dealing with the garages than the banks, is HP generally good value ? My main concern was always that you don't have the same flexibility to pay off lump sums etc as you could get with a personal loan
 
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