“Don’t tell the Credit Union it’s for a car!”

[annointedb]

So I’ll be looking at a new car in the next few months (single M with parents earning 32kpa gross, 5k loan getting paid off so there will be space for it). The advice I’ve got is to tell lenders “it’s NOT a motor loan.”, basically taking a “personal loan” instead because of supposed lower rates. I’m not comfortable with that advice but they assure me “everyone does it”. I’m not going to do it, but are they right? Is it as rife as TV licence “forgetting” & dodgy boxes or would I be seriously on the hook if I did this?

 

[peter1000]

@annointedb Car loans tend to be cheaper than unsecured personal loans, not the other way around

 

[sapiens]

@peter1000 Often credit unions lowest rate is for a personal loan unlike in a bank. I’m unsure why, but my personal loan was lower than my car.

 

[peter1000]

@sapiens Both the credit unions near me have "green" and car loans down at the cheapest and personal significantly more. I guess there could be differences around the country

 

[brawlmasterx]

@peter1000 I went through An Post Money for a loan(Avant) recently for a new electric car.

I got offered their lowest rate for a personal loan, lower than a car loan or a green car loan. Spoke to them over the phone and they told me to take the personal loan

 

[peter1000]

@brawlmasterx Interesting, I think the message is shop around and make sure you're looking at all the options.

 

[captainfarkus]

@annointedb I'm sorry, but I don't think you can afford a new car at the moment. You still have a 5k loan (for what?). You need to pay that off ASAP.

You don't mention savings. Therefore, I assume you have none? You need to start saving ASAP, both on a regular and lump sum basis. Once you have 10k-15k saved, then you can look at buying a car in the 5k-10 price range if you still want one.

You never borrow for luxuries. You never lie when borrowing money.

 

[broker50]

@captainfarkus He's kinda right.
You may get the car, 2 months in have a major fault.
You'll be left with no transport, no way to earn and a big bill.

The adage goes, don't buy anything you can't afford to replace.

 

[annointedb]

@broker50 I’ve had that happen with my current beater a few years back. I managed. The question was about the advice, not about the viability of getting a new car in the first place.

 

[broker50]

@annointedb fecking shocking, when things do go the way you asumed.

 

[annointedb]

@captainfarkus Not a “new” new car i.e. out of the showroom. A budget of 5-7k, and I’m looking to clear the 5k debt first anyways. I was asking about the “don’t tell the Credit Union it’s for a car” advice. It feels dodgey and I’m not doing it. Am I right?

Also I see you don’t have ADHD. How nice for you.

 

[trulyunsure]

@annointedb It doesn’t matter if it’s new or what the price is. The point they are making is, instead of getting a loan, you need to save first.

And plenty of people with ADHD save money, myself included.

 

[jane1923]

@trulyunsure I have ADHD, age 30, I earn 6 figures and drive a 17 year old car. I put away €6500 a month into my savings. What’s any of this got to do with ADHD?