Car loan ireland
In the current market scenario, sometimes we face a tough situation of making a decision for financing an asset. It becomes quite difficult to decide our options, as one need to think twice prior making a decision of getting a car loan. Our ever growing needs pushes us to make a decision of taking up various types of loan options available in the market with several banks for instance personal loan, holiday loan, mortgage loan, car loan, etc. During the process of making a decision most of the times we tend to ponder whether it is a right decision or not or whether it is the right time or not, as we don\'t want to have a poor credit report on our account.
Times have changed now as we try to set out guidelines of simple pros and cons for people who want to land their dream car in their garden or premises and be a proud owner of it. With this article we will help you to chalk out various pointers you need to keep in mind before making a decision of buying a car loan.
For starters we shall list key factors that are important before buying a car:
Vehicle needs:
As a buyer you need to first figure out your buying needs. What kind of car you want to buy whether a brand new car or second hand car. Once you have decided what kind of car you need to buy then you should decide on the type of car you intend to buy based on your family requirements i.e. whether sports utility vehicle (SUV) or a truck or a wagon or a minivan.
Budgeting:
This is a very important step as it will decide your financial concerns. The most important question of how much you can afford to spend? You should set a reasonable price range for the vehicle and begin to eliminate vehicles that are out of that price range. You should keep in mind of how much you can afford for your monthly payments based on your income and other monthly expenses. Be sure to include the costs of gas, insurance and maintenance.
Dealer:
After the assessment of what kind of car you want to buy and budgeting your finance, you need to find a recognize dealer or a reliable source from were you want to buy your car.
Before buying:
Finally, before buying the car you should clarify the paper work and understand the warranty aspects of your transaction. You should keep your finance agreements with you and in a safe place where you can retrieve it easily. Also you should take a test drive before taking an action and may be you can hire a mechanic to inspect a car if it\'s a used car.
Hopefully, the above factors will help you to settle your buying needs of a car. If the above key factors are kept in mind, then you should not have any problems in buying the car you intend to. It will make your job very simple in financing your car if you have done the basic work thoroughly.
Financing your desired car is the most important deal that you will have to crack with less time and at a fair deal. There are various stages involved in financing your dream car. We have list out the following that will help you to make your decision easy and quick.
Where to buy
The first question that pops up is who will finance the car loan? Not to worry as, today there are several options available in the market, all you need to do is to the dial a number and the executive or representative will provide you the complete set of details. We are here listing few of the options available in the market for instance Halifax, Car Finance, Bank of Ireland, Permanent TSB or E-Billing solutions (EBS). These are the most influential and active lenders available in the market today.
Lending Criteria
The banks or the financers have the following lending criteria's:
X Good credit history-You need to have a successful credit history. Any default made by you in the past will hamper your chances of getting a car loan. Most of the financers cannot arrange funding for the applicant who has defaulted in the past. Once the application is received from the applicant, the lender will carry out inquiry with Irish Credit Bureau to check the credit history.
X Recognized Dealer: Usually the bank will not entertain applicant if the car is to be purchased from the private dealer. Cars must be purchased through a recognized dealer only.
X Car reg 2005 and onwards-To qualify, the car must have a reg dated 2005 or after in order to qualify for the loan
X Affordability-You need to have the ability to repay your installments and the same is assessed by the lender as they do not want to have an applicant with a possibility of default.
Interest Rates
Borrowing money in Ireland is not difficult today as most of the dealers offer zero percent interest rates for specific time frames. The interest rates may vary between lenders although the simple rule applies the more you borrow less is the interest rates charged. Before buying one can compare interest rates offered by different bank so as to keep their Annual percentage Rate (APR) as low as possible and get a best deal. For instance, Halifax has launched its new car loan product, with fixed rates of 6.5 to 8.8 per cent. EBS loan rates range from 7.99 per cent to 11.37 per cent too high to even consider. Anything below 10% APR is a good deal.
Insurance
No matter which car you buy, the law states you need to insure it. Insurance is the most important subject you need to discuss with your dealer before buying the car. There is a possibility that your car being involved with an accident, being vandalized or stolen and with insurance you can cover the future damage. The cost of your insurance will depend on the car you buy weather used or new car, your age, occupation and driving record, your anticipated annual mileage, and whether or not you use the car for business, as well as pleasure. It is wise to discuss these intricacies of insurance with your dealer.
Tax
Road tax seems to be an unimportant point although this will increase your cost depending on the size of your engine. So consider this before buying.
Documents required
Before you apply for a loan application, ensure that you are ready with the document required for submitting your application form with your lender. Documents like proof of address, identity, driving license, confirmation of your regular income (generally last six months) and proof of employment are the standard documents required.
Pre application checking
Pre application checking involves using a simple option of loan calculator available on the lenders website. Answer simple questions like your borrowing amount, tenure, type of loan etc and you will get your repayment schedule based on your APR. This will give you the idea of your monthly installments payments. Apart from the loan calculator checking, ensure the underlying hidden cost involved with the loan, as some bank do charge processing fees etc. This will add up to your cost.
The above pointers will prove to be a great help if you stick out your plan and plot necessary details mentioned above. There are no secrets hidden, all you need to do is to be sure about your options available in within the market. So, next time you need to buy a car loan you know what you need to do!!