Difficulty obtaining car finance

  • Thread starter justindublin
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justindublin

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Hey Guys,

Having a major problem that hopefully you guys could help with.
I'm 18 and work two jobs, One in IT for a large Irish company and another in a part-time position on weekends in Retail store.
During November to January i was working THREE jobs and on adverage 55 hours a week, However one of these jobs was only for a sesional period for a events managements company and come January i was back to just my other two jobs.

Recently in the IT job i was given a promotion to a full-time position on a higher pay bracket and now earn approx €400 weekly from this while still taking home a further €50 weekly from my Part-Time position, all after tax.

I have has a current account with BOI for over 4 years and during this time all my banking was done with these including all my payments for my employers.

I have a €300 euro overdraft facility on this account with i sometimes use but as with overdrafts it is repaid weekly once my wages is lodged.
I also have a credit card with a limit of around €800, i think which i currently have a €400 balance on but is non outstanding or anything.

At present i do not have any outstanding debits appart from the balance on my mastercard which i havnt even recieved my first bill from yet. I have 4 direct debits on my account which are always paid ontime but sometimes use some on my overdraft but VERY seldom.

Recently i applied for a loan from BOI of €8000 euro to finance a new car, unfortunatly my application was turned down and i cant for the love of god think why. Off the top of my head i thought maybe this was because of my young age and attempted to re-apply for €6000 euro instead but i've been told i must now wait three months. I know several people who have only recently joined bank of ireland with very little banking history and recieved loans almost instalntly after applying.

After i was refused i applied to AIB and EBS who also turned down my load application. The only reason i can think of for this are:

1) Because i was refused by BOI this is marked on my ICB
(Does this happen?)

2) My bank statments on my current account would show my lodgements being withdrawn over the week frequently, leaving very little in my account by the next pay date.

3) My young age

Can anyone think of a way i might be able to get this loan?
I was thinking finance throught the dealer and provide written confimation from my employers stating my earnings and stable employment. I have several people who will go guarentour but non of whom are home owners.

Do bank managers still do meetings?
Do my 2 refused application affect my future applicaions?

Any advise would be greatly appriciated and i look forward to your replys, Cheers Guys!
 
They always want homeowners as guarantours.

The refusals will not be on record only the fact that bank x, y or z looked. This can have an adverse inference from other lenders. IE this guy has been applying for loads of loans.

Ask for a bank mangager meeting and work from there.
 
I have called the bank already but i've been advised that i cannot meet with the bank manager but instead can only speak to the person(s) incharge of Lending and Borrowing. Can the bank even approve a loan locally or does it have to be done from HO?

Would you say the letters and stuff from my employer will make any difference?
 
Loans can be approved locally. It depends on the relationship you have with the bank. You should be able to talk to your manager, if they won't allow that then tell em you will walk and take your custom elsewhere.

I would get your record from the ICB to see if there is anything wrong on it.
 
You could request your credit history from the Irish Credit Bureau to see if there are any black marks on your record.
 
Already d, got it today.

Theres noting on it. Only my Name Address (etc) and my old Job noting else. Apparently i dont have a credit history lol

It does however show anytime a Bank had looked at my credit history.

Would the letters from my employer make any difference?
 
Already did, It arrived today and theres noting on it appart from times the Bank look at my credit history. This is bacause the only thing close to a loan that i have is my new Mastercard.
 
That could be your problem, no credit history and loads of enquiries.

Ask to firmly to see the manager and show him the report and the letters from your employer.
 
Your age and lack of previous credit history would be a major stumbling block. Also 400 a week may seem like a lot of money to you, but in fact its below average income and so would reduce your chances of getting a loan.

Secondly the fact that you are looking to borrow 8k for a car loan at the age of 18 might ring alarm bells - though you may be an exception, there is a notorious reputation for young lads under 21 to write off entirely their first car - if not themselves and their passengers also (especially in Munster) so leaving you out of car and pocket. That doesn't even take into account the very high insurance you'll have to pay. So I'd suggest saving 250 euros a month for 10 months and buying for cash. OK it sounds distinctively untrendy, but it will save you hugely in the long run (believe me, I made the mistake of borrowing 10k for my first car and ended up not only crippled by the repayments but also was crippled by the high insurance costs that are frontloaded into the first 3 years or so of driving). Then in a couple of years time trade it in for something a bit nicer.

My advice to you now is save the credit for when you'll really need it later on.
 
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