“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?

 

[annointedb]

@trulyunsure Not to sidetrack, but you’re telling me poor people put 5 figure sums away without neither a plan for what it goes towards nor massive pressure from the moneyscum to give it to them for something or other? And I have made it clear the plan is to pay off the debt before accruing new. Most likely there will be savings alongside the debt paydown (yes you do both) and I’ll have some money aside.

I’m not saving the equivalent to the Canadian entry wealth requirements to just look at it. People with that kind of control are living a charmed life or suffer in other ways.

 

[gallinal]

@annointedb I'm on a similar salary to you, I don't live with parents, I pay rent, I have ADHD, and yes I save money every month. 32K is not poor. If you think 32K yearly is poor then you have never lived in true poverty.

 

[trulyunsure]

@annointedb I was renting in Dublin City centre , paying expenses and on a 28k salary and still saving. 32k is not poor.

Your attitude will keep you poor, not your salary.

 

[annointedb]

I never brought blame into this. If someone brings blame into finance they’re fighting battles and making the very kinds of poor decisions that they espouse to abhor. We all have our savings journeys to make and I never brought mine into this. It was a simple question about bad advice I was given and wanting to verify that yes, it was bad advice. What I call Tory is the “faulty person finder” mindset. It’s zero-sum political bullsh*t that helps no one. To hell with fault, and all who seek it. Find out what works, and advocate for that. Processes, actions succeed & fail, not people.

I’m not going to personalise this only to say I could be out of a mental health break, a prison sentence, messy divorce, failed emigration attempt, family issues, or I could have just peed away everything I had down at Paddy Power. None of it is any concern of theirs, and irrelevant to the question asked. (For the record, none of the above actually apply.)

I’ve blocked them, and will block anyone else who wants to have a go at me for not mentioning my savings situation.

EDIT: and I’m blocking lifestory p*nis measuring contests. Not sharing my story, not interested in yours.

 

[cree4christ]

@annointedb Damn you have a really fuckin shitty attitude. Sort yourself out guy.
Do me the honour of blocking me please so I don't ever have to see this type of bullshit in this sub again. Holy fuck!

 

[southernyankee]

@cree4christ Hey leave him..he thinks borrowing for a new car is a good idea whilst owing 5k and having no savings. Then he thinks anybody who disagrees is a bluedhirt. Financial illiteracy often goes hand in hand with general ignorance so leave him be.

 

[minsimte]

@annointedb CU car loans are lower than personal loans mostly. Also, having just got a credit union loan for my car, I withdrew the money for the car dealer via bankers draft so credit union print the name of the dealer on the cheque.