Your dream car is within your reach. Fund it with our car loans with a starting APR of 6.5%. While other lenders require at least 10% as a deposit, we are willing to approve your application even if you have just 5% of the purchase price to pay upfront. In addition to a deposit, you should have a good credit score.
You may have a very poor credit score or no credit history. You may be willing to apply for car loans with no credit check from us. These loans involve a soft credit check that does not impact your credit score because no inquiries will be shown on your credit file.
Conducting a soft credit check will help us gauge whether or not you are eligible for our car loans. You can prevent yourself from borrowing money when you know your financial condition is weak. Consequently, there is no possibility of taking out an unaffordable car loan.
At Financealoan, you will get personalised deals that match your current financial condition. Just let us know how much money you want to borrow by filling up our application form. We will then peruse your financial situation to ensure you do not borrow more than your affordability.
A car loan is personal funding from a direct lender that you use to buy a car. It allows you to buy a car from a dealer directly. After that, the car will be yours from the date of purchase. However, you will get the title at the end of the settlement of car loans in Ireland.
| The size of the loan | Fixed interest rates | APR* |
|---|---|---|
| €1,000 - €24,999 | 8.5% - 12.5% | 8.9% - 13.9% |
| €25,000 - €50,000 | 6.2% - 11.9% | 6.5% - 12.5% |
*The APR is a representative example. The actual APR may vary based on your credit score and repaying capacity.
A car loan is different from car finance. Two types of car finance deals are hire purchase and personal contract purchase. While a lender provides you with car loans, car dealers provide car finance deals.
Here is how a hire purchase and personal contract purchase are different from an auto loan:
Deposit size
Hire purchase will require you to have at least 10% of the deposit size, which can go up to 15% in the case of personal contract purchase. If the purchase price of the car is high, you will certainly have to arrange a lot of money to put up the deposit. It can be quite difficult for you.
FinanceaLoan can provide you with an auto loan with as little as 5% of the deposit size as a direct lender. The loan-to-value will increase in this case, yet you will find them way cheaper.
Car finance deals are subject to too many risks
Your car will serve as collateral against hire purchase. You will be required to pay down the debt in fixed instalments, normally in three years. Failing to pay down the debt on time will allow lender to take the possession of your vehicle. Further, the interest rates will be higher than that of a car loan from a direct lender.
Personal contract purchase is like leasing a car. You get a car from your dealer and keep paying a fixed sum of money every month. While you can drive as much as you want when you apply for a car loan or hire purchase, personal contract purchase will put restrictions on mileage.
You will end up paying fees when you cross the mileage limit set in the contract. When the agreement is about to expire, you will be given to choose between these three alternatives:
Leasing could be a better option only when you need to keep updating your car frequently.
You will get a more expensive deal when you have a bad credit score
Some car dealers can give you a chance to have your car financed despite a bad credit score, but this will burden your budget. The interest rates will be very high whether you sign a hire purchase or a personal contract purchase agreement.
Comparing the best car loans in Ireland, you will find that our car loans are available at favourable interest rates. Traditionally, it was difficult for borrowers to get the nod for a car loan with a bad credit score.
Still, technological advances have made it far easier for lenders to assess individuals’ circumstances as accurately as possible. Now lenders do not make a lending decision solely based on your credit history. They rather check your overall financial position.
Some unavoidable circumstances like out-of-the-blue medical expenses can be responsible for a ding in your credit score. This cannot push you away from applying for a car loan from us.
You must fulfil the following conditions to qualify for bad credit car loans from us.
Your bad credit score should not be due to poor money management
Under most cases people have less-than-perfect credit rating. It is because they take on too much debt that they cannot afford to pay back. This clearly raises doubts on your repaying capacity. A lender may turn you down on the grounds of previous defaults, and if they approve, chances are you will end up messing with your auto loan.
A bad credit report will not come your way if it is due to unexpected or unavoidable circumstances such as:
However, if you have missed a few payments due to other than uncontrollable events, you are still eligible to get our car loans for bad credit.
You should not have an outstanding loan
You may want take out a loan for a car with a bad credit rating. Still, you should ensure that you do not have an outstanding loan. When you have already other debts to pay back, your repaying capacity may be called into question.
If you have a credit card, the balance should not be more than 30% of the total limit. If you have emergency loans like doorstep loans and quick loans, try to maintain the debt-to-income ratio up to 25%.
Borrowing money cannot be too large
A car loan with bad credit can be expensive as it carries higher interest rates. Borrowing a larger amount will make it tough to repay the debt on time.
In the event of a weak credit history, you will not be able to borrow from us more than €25000. We restrict the borrowing limit as small car loans for bad credit will be more manageable to repay.
Car loans in Ireland can take three to five years to pay off. You must get them at the lowest possible interest rates. You need to keep some basics right and then seek a loan while purchasing your dream car.
Here are some things to consider while aspiring for cheap car loans:
Compare car loans
Apart from direct lenders, banks and credit unions also provide these loans. Before you decide, you should do proper comparison of the deals available in the market. There are some websites that exclusively compare the interest rates, monthly payments and the repayment terms of car loans from credit union with banks and direct lenders.
Borrow what you can afford
Think carefully about how much amount you feel is affordable for you. If you can pay from your savings, you should use them first. Try not to borrow more than your affordability. If you cannot make a decision, you can always contact us. Our customer care team will help remove your confusion and doubts.
Pick a shorter repayment term
Choosing a shorter repayment term is the best way to lower your car loan interest rates. It will add to the size of your monthly payments, but you will pay less in total. However, if your budget can pay down smaller monthly payments, choosing a longer repayment term makes sense. Although you will be paying more, it will not let you fall into debt.
Keep your credit record in a good condition
Before you apply for a car loan, you should try to go through your credit report to see if there are any corrections needed. Try to improve your credit score so you do not struggle to get a loan at a lower interest rate.
Use a car loan calculator
A car loan calculator will help you know the estimated amount you will likely pay off. Although it cannot determine the actual cost the loan will incur, you will have an idea of whether your budget has the potential to settle the debt. Make sure you can pay more than the amount the calculator shows, as the actual interest rate will also involve processing fees.
There are various direct lenders offering car loans. Each lender has their own policy, so not all of them might suit your financial condition. With us, you can use your car loan the way you want. There will be no restrictions on the mileage use. No documentation and monthly fees are charged, and the interest rates of car loans are lower than unsecured loans.
Here are the reasons why FinanceaLoan is different from other mainstream lenders:
Getting a car loan with no deposit might be possible if you apply with a guarantor or co-signer who has been maintaining a decent credit score.
A car loan will improve your credit score if you make the entire payment on time. You can fully utilise our affordable repayment terms.
You will have a 7-day cooling-off period to terminate the contract. If you do not sign the agreement by then, we may think you have already backed out.
Contact us if you are struggling with the payments of car loans. We analyse your current financial condition again and then put you on a new repayment plan.
If you want to arrange adequate finance your dream car, apply for our car loan today.
You can do that, but it will be better if you inform us well before doing that. However, you cannot do this in the first year of your loan. After that, you can make additional payments or repay the pending amount to close your loan early. We do not ask for any fees if you do this in the last 6 months of your loan term. Doing this before that period may attract some fees, but it will be affordable.
