Consolidating car loan into mortagage

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buyaka

Registered User
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I've a mortgage of 280k with BOI and an outstanding car loan of about 22k with a different bank.

I want to upgrade my car to something thats around the 35 to 40k mark.

Would it be possible, sensible and likely that my bank would allow me to consolidate this car loan onto my mortgage?

Any opinions very much welcome
 
You would be financing an asset with a life of 4/5 years with a loan over 20+ years.

If you paid additional amounts to the sum of the car loan against the mortgage over those 4/5 years it may make sense as the loan rate for a mortgage is cheaper than an unsecured loan.

However given the current climate borrowing 40k to buy a car is questionable.
 
buyaka said:
Would it be possible,
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Depends on a number of issues including your bank's policy, your loan to value ratio, your credit standing and your income.

buyaka said:
sensible
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In my opinion, no, for the reasons Bricktop's already mentioned.

buyaka said:
and likely that my bank would allow me to consolidate this car loan onto my mortgage?
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Depends on your answer to the first point.

I wouldn't do it - if you run into financial difficulty, you could be risking your home for a car. There are perfectly good reasons to top-up a mortgage, but I don't consider that upgrading a car is normally one of them.
 
would you like it if you were still paying for a car you bought in 1984 today?
 
Hi,

If you kept your car for 5 years and didn't change it and with what you would save by going on to mortgage rate versus car finance rate - if you put the balance towards paying off your mortgage quicker then you could save money. For example you would be paying E40,000 over 5 years approximately in the region of E800 per month - add E40,000 to your mortgage paying extra E280 per month - difference of approximatley E520. Otherwise just adding price for the car on to your mortgage and spreading it out over the life of your mortgage would make it a very costly car.


Angela59
 
And people wonder why this country has gone belly up! You do not need a new car. You do not need further debt. The car you have is probably perfectly ok. Get real. Visit your local dole queue. Read the papers. Give some money to your local svdp instead.
 
why do you wish to upgrade your car, my guess you sound like a 2.

1) current car is old and breaking down regurarly.
2) current car is a not a shiny new 09 model like the neighbours one.
3) current car is perfectly ok but i like to pretend im financially well off.
 
I have never understood why people take out loans to buy cars, let alone put a car on your mortgage!

In my book, if you cannot save enough money to buy the one you want for cash, then you cannot afford it and anyone thinking about putting a car on his mortgage must be nuts, especially in a recession. In a recession it is best to reduce your debts as much as you can, not to increase them.

You have to learn to distinguish between "wants" and "needs". You may want a new car but do you really need a new car? If you buy a new car it could depreciate by 40 to 50% in its first year, meanwhile most of your loan will still be outstanding...so you are thinking about walking into negative equity on a car!
 
Buyaka,
Maybe you should take your own advice.
Two montsh ago you asked advice about a payment break. See this thread.
And you ending it with ...

buyaka said:
...Probably a nice little kick in the This post will be deleted if not edited to remove bad language for me anyway ... force me to look at bad spending habits etc and cut back a bit.

I might downgrade the car and bring the car payments down to compensate for the increased mortgage payments.
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Has your situation changed drastically since then?
 
buyaka said:
Would it be possible, sensible and likely that my bank would allow me to consolidate this car loan onto my mortgage?
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It's possible, not sensible, in fact downright stupid (unless you are earning a vast amount, which you're not as you wouldn't have to borrow) and I hope for your sake the bank doesn't allow it.
 
tloan said:
And people wonder why this country has gone belly up! You do not need a new car. You do not need further debt. The car you have is probably perfectly ok. Get real. Visit your local dole queue. Read the papers. Give some money to your local svdp instead.
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Is correct!
 
Hi,

I don't think you can blame the op for the reason the country is in such a state. I can't say a know the op financial situation but I'd say you can point a finger at banks for throwing money at people and greedy developers who in turn charged exhorbitant prices for substandard houses that weren't worth the price they were charging. At least he didn't buy a casino in Macau with other people's money and gamble on whether oil would be found in Uganda, or bleed money from his school mates to fund his champagne lifestyle - I'd say you can point the finger of blame for the state the country is in to these "type" of people. In fairness he asked a question and at least it would be coming out of his own pocket.

Angela59
 
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