Bridging loan for car.

C

colly

Registered User
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Can anyone tell me how easy/difficult it is to get a temporary loan until I sell my car? I bought a car off a mate recently, I gave him half, with the rest to follow upon the same of my car. But I am having trouble selling it quick enough, and I still owe him 8k. He now needs this asap, but I can't shift my car quick enough. Do banks do this or is it too much of a risk for them? I've dropped the price on my car so hopefully it will shift but if it doesn't I'm in trouble!
 
Get a personal loan from Tesco (7.5% APR) and then repay it when you sell your car. You don't have to tell them what your intentions are, i.e. it is short-term. There is no penalty for early redemption.
 
europhile said:
What do credit unions charge these days?
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If they charge less than 7.5%-well and good-but don't they have a requirement that you must have savings with them as well?
 
CCOVICH said:
Get a personal loan from Tesco (7.5% APR) and then repay it when you sell your car. You don't have to tell them what your intentions are, i.e. it is short-term. There is no penalty for early redemption.
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Yeah that sounds like a good idea. However I currently hvae 2 10k loans at the moment - 1 through AIB, and the other through a broker/reseller called Open.ie, but its still underwritten by AIB anyway.

Will tesco check and see these? If they see 2x 10k loans will they be reluctant to give me a 3rd? I'm on about 50k what are the boundres of personal loan amounts vs income? Thanks
 
One more question. I have recently changed jobs - its a far better job with more money but I know companies look badly upon this as there is some uncertainty and risk. What can I do about this as I have only just started last month?
 
colly said:
Yeah that sounds like a good idea. However I currently hvae 2 10k loans at the moment - 1 through AIB, and the other through a broker/reseller called Open.ie, but its still underwritten by AIB anyway.

Will tesco check and see these? If they see 2x 10k loans will they be reluctant to give me a 3rd? I'm on about 50k what are the boundres of personal loan amounts vs income? Thanks
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Yes, they will see these loans (Tesco loans are provided by Ulster Bank), and even though I'm not an underwriter, I would imagine that you would struggle to get another loan for €10k, given that you will have €30k of debt on a salary of €50,000.

And yes, the fact that you changed jobs recently will almost certainly count against you. I belive (from anecdotal evidence) that Tesco have fairly stringent lending criteria.

Nearly 2 weeks later and no car sale-doesn't look too good.
 
CCOVICH said:
Get a personal loan from Tesco (7.5% APR) and then repay it when you sell your car. You don't have to tell them what your intentions are, i.e. it is short-term. There is no penalty for early redemption.
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CCOVICH, are you sure this is in fact the case, i.e. no penalty for early redemption?

Looking at the FAQ on the tesco web-site they say

Q. Can I pay it off early?
A. Yes. Simply call the Tesco Loans Helpline on 1850 520 520* and the full amount of your loans outstanding will be calculated and you will be advised of the amount payable to close the account.
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Not quite the same thing IMO :(
 
Well if you look at this page

http://www.tesco.ie/finance/personalloans/index.html

you see the following:

No surprises... just guarantees!
  • The Tesco Loan is a fixed rate loan, so your repayments are GUARANTEED NEVER TO CHANGE…unlike variable loans.
  • No set up fees, and NO EXIT PENALTIES
(Their emphasis)

It would of course be worth getting clarification in writing if you do consider taking out a Tesco loan and repaying early.
 
Thanks for that CCOVICH, i had missed the obvious and went straight to the FAQ :eek:

It does clarify things, and makes Tesco a very attractive option for those who want a personal loan, given how ECB rates are increasing presently.
 
Don't forget under the Consumer Credit Act 1995 if you pay off a loan early you have a right to an interest rebate. This doesn't however cover penalties ofr early redemtion so still have to check for these.
 
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