financing new(ish) car for 2006

I

irishpancake

Guest
hi folks

greetings of the season to one and all:)

mrs. pancake has decided that we need a new(ish) car for 2006, so i have been checking out financing options.

the car in question is costing €16500, i have a trade-in worth €10000, according to my local friendly car dealer;)

i need to finance €6000 over 4 years.

so far almost all the institutions i have tried (BoI, AIB, PTSB, NIB) are quoting around 8.9%APR fixed, which is working out at €148-€150'ish p/mth. (The Credit Union is actually no better, actually slightly worse, as it requires capital tied up in shares as collaterol)

Is this the "going rate", or can i get finance cheaper than this, considering i am not borrowing a large amount and the new car is actually a 2004 model??
 
Your numbers look about right. You can check some other rates in here [broken link removed]
 
Have you considered saying No to Mrs P? Some people seem to think that it is almost compulsory to have a car loan. As soon as one loan is paid off, they rush to take out the next one. Here's an alternative - put off the purchase until you have saved up what you need to spend. You'll save on interest payments & depreciation costs.
 
irishpancake said:
.
the car in question is costing €16500, i have a trade-in worth €10000, according to my local friendly car dealer;)
i need to finance €6000 over 4 years.
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Could not agree more with Rainyday, especially for €6000

Is it worth it??? car in question = €16500 from dealer so really worth €14000.
Trade-in to dealer = €10000 (i guess that the valueon the famous 'book' so your car is really worth €12000...

Are you simply not financing its profit?
 
RainyDay said:
Have you considered saying No to Mrs P?
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not with Crimbo fast approaching i haven't :D . I really do wanna get fed on Sunday.

RainyDay said:
Some people seem to think that it is almost compulsory to have a car loan. As soon as one loan is paid off, they rush to take out the next one.
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My previous car finance has been finished since 2004, next year it will depreciate further and new(ish) cars will cost more, so now is the time to strike. I can afford €35/wk

Happy Christmas to all AAM contributors
 
irishpancake said:
and new(ish) cars will cost more,
Happy Christmas to all AAM contributors
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Can you explain why new(ish) i.e. second hand car will cost more next year?
I would say they'll cost less....
 
bacchus said:
Can you explain why new(ish) i.e. second hand car will cost more next year?
I would say they'll cost less....
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a year-old car will cost more next year because my 2002 car will then be 4 years old and worth less, whereas a 2005 second-user will be more expensive (this time next year). i'm gettin a 2004 model now.

:( isn't it always the same on AAM, you ask a simple question and most ppl (except demoivre-btw thanks for the useful link) don't answer it, simply offer advise as to why you are making a disasterous financial decision ;)
 
hi Irishpancake

From my own experience - got a car for my wife in Windsor Motor City (or was it Merlin, you know what I mean!) - I had checked all the rates out and they were hovering around the 8% (around 10 months ago).

So in Merlin I asked about Finance - NOT about hire purchase - and they said they could organise it - ended up getting a fixed rate loan from PTSB at 6.2% - about 2% cheaper than PTSB themselves were offering their customers.

So if your car dealer has a relationship with any banks it's well worth checking out.

p.s I am also thinking of changing and have gone through the "Why do you have to change?" process !! As Charles Bronson said in a film I saw recently "I don't need one, I feel like one"
 
Well said lads, if you want to change your car, change your car and feck the begrudgers! A few years ago I was looking for a loan to purchase a car and I rang my own bank and asked for a quote. In the meantime my father spoke to his bank manager who phoned me with a better quote. I rang my own bank, told them I had a better quote and they gave me a better quote again. I thought this was brill until my dad's bank actually quoted me less yet again! I just top this loan up every time I change my car so I get the same good rate. I enquired from the new bank manager the last time I was changing if I could get a better deal and she told me I had a fanatasic deal (which I well and truly believe). The interest rate was 5.something on my last statement a few weeks ago. Shop around for a quote....it's a competitive market and they are well able to give a better deal if you ask.
 
I'd say you would do well to get favourable rates (i.e. less than the 8.9% you mentioned) given that you're only borrowing €6k.
 
CCOVICH said:
I'd say you would do well to get favourable rates (i.e. less than the 8.9% you mentioned) given that you're only borrowing €6k.
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Good News on the car loan front. I have got a €6000 flexible loan from GE Money direct (via [broken link removed]).

Variable 7.9% (8.1% apr) over 48 months, no documentation fees, no sneaky extra payments (like the 49 months sought by others) costing €146 p/month. I would advise anyone seeking small loans such as this to try all providers, as there are considerable differences.

I also sought a loan fron EBS, who use GEmoney, and they were looking for 9.9%, costing €150+ p/month. So be careful who you deal with.
 
Fair play, sounds like you did well. People usually have unfavourable things to say about GE, but it looks like that's better than you can get in most other places for €6k variable. Did you have to negotiate, or was this a standard rate?
 
Fair play indeed , hard to beat that I would say. There is another crowd Open finance that also claim they can get cheap car finance by shopping around on your behalf - never used them myself though so can't comment on what they are like to deal with.
 
CCOVICH said:
Fair play, sounds like you did well. People usually have unfavourable things to say about GE, but it looks like that's better than you can get in most other places for €6k variable. Did you have to negotiate, or was this a standard rate?
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hi there,

well, as for negotiation, i did'nt really.

However, their initial offer documentation contained a 54 month deal, with 6 months at an interest-only "low start" rate, d the above quoted rate for the following 48 months. :(

I declined this, and they said it had been included "in error". They then sent out an offer letter, with rate/repayments as quoted above. This is a variable rate, which can be cleared as soon as the SSIA permits, which is in a year's time in my case. :D

So these ppl (all financial institutions) will always make an error in their favour, caveat emptor ;)

Just wondering, as i have applied to multiple institutions for the finance, and only went with the best offer, will this in any way reflect on my credit rating with ICB?
 
demoivre said:
Fair play indeed , hard to beat that I would say. There is another crowd Open finance that also claim they can get cheap car finance by shopping around on your behalf - never used them myself though so can't comment on what they are like to deal with.
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Tried them, but gave up, their web-site says

Open has access to car loans from Allied Irish Finance, Bank of Ireland Finance, Anglo Irish Bank, Lombard, GE Capital Woodchester and IIB Finance amongst others. This means that we can get you the car loan that best suits your needs.
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but when you go to the calculator, it won't take anything under €7K. Guess i really am just too conservative as a borrower ;)
 
Yeah I looked at Open before and the rates quoted were only competitive if the amount borrowed was above €XXXXXX or something.

Also, my girlfriend had a bad experience with them a number of years ago, and for that reason I would be reluctant to throw business their way unless they were quite a bit better than a competitor.
 
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