Bridging Loan for a Car

  • Thread starter gerry2scopes
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gerry2scopes

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Hi there guys I was wondering if it is possible to get a bridging loan for car finance or to use as a personal loan ? The reason I ask is that I wanted to get a new car this month and perhaps if i gave some of my financial details i might get some advice as to what type of loan i can get.

I am a home owner and I am looking to re-mortgage my home in October releasing 24k. Of this 24k i was using 4.5k to pay off my existing car loan and a further 8k to put towards a new car. The balance is going on decorating the rest of my home. So i came across a great deal this week on the car i wanted to get, the price of the car is 15k after discount and the dealer is willing to give me 6k as a trade in for my car leaving a balance of 9k.

As i know that i will be re-mortgaging in October and i will be releasing enough to cover the 9k balance and the 4.5k to pay off my existing loan, what i was really wondering was whether i should try and get a bridging type loan.

If it would help i am an AIB customer anyway and have my car loan with them and i was planning on moving my mortgage to them also.

I haven't gone to any banks or the credit union to ask about this type of loan yet. But i really was looking to get the best finance type package for a short term loan where i won't have to pay too much interest as opposed to getting a longer term loan and paying it off early.

Any one who might have undertaken something similar or any advice i get would be sound

Cheers,

G2S.
 
Normally a bridging loan refers to buying a house & deals with larger amounts of money, so I'm not sure this is what you need. I would talk with your bank, term loans are normally >1yr so it might just be an overdraft you need.
It looks like personal loan/over draft rates vary from about 7% to 11%, which over 4 mths would be about €200 to €330 in interest.

On another note, it's not considered a good idea to re-mortage to fund "lifestyle" spending. Given that you'll probably be changing car every 2-3 years, you should be looking to pay off the 9K in that time frame. Similarly for home decor, 5-10 years maybe.
 
yeah i know what youre saying about lifestyle funding with a mortgage but i reckon for every K that i invest i will make double back, minimum, with some shrewd purchases and keeping an eye on the bargains. I only want to invest now to recoup in a year on the back of the SSIA's hopefully

Cheers for the info a chat ewith the bank and the CU on tuesday will tell the tale
 
Make sure that whatever loan you take out is variable rate, so you won't have any penalties for early repayment. BTW, I agree with Tiger that it's not a great idea to buy a new car with borrowed money.
 
RainyDay said:
Make sure that whatever loan you take out is variable rate, so you won't have any penalties for early repayment. BTW, I agree with Tiger that it's not a great idea to buy a new car with borrowed money.
Click to expand...

Also note that second-hand car prices are plummeting, so you can pick up a very good deal of a recent car for good money. Remortaging to fund a depreciating asset (car) does not make financial sense, sorry. You will never make money on a car.
 
Correct me if I'am wrong - If you use the money from your (re)mortgage of your property are you not paying 3.8 - 4.0% APR over 10 - 20 years which works out alot more than if you borrowed this sum using a credit union or bank loan at maybe 6% APR over a shorter period of time 3 - 5 Years. Will you not be paying double interest on the carloan of 4500 if you borrow this money instead of paying it off quickly in a short space of time.
 
don,t know what you guys think of the old adage "never a lender or a borrower be" but it has worked out well for me, i tend to live within my means always
 
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