Interest rates on the car loans typically revolve around 8.5% to 12% depending upon individual credit score and loan amount. However, online loans have more flexibility in interest rates than traditional loans.
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 Loanstopocket, 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.
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:
| Factors | Car Loans | Hire Purchase | Personal Contract Purchase |
|---|---|---|---|
| Ownership | Get the car ownership straightway | You can only get the ownership after the final payment | You need to pay the final balloon payment to own the car |
| Payment Pattern | Borrow a lump sum and repay in monthly instalments | Deposit and fixed monthly instalments until the balance is completed | Deposit + monthly payments + last balloon payments |
| Monthly payments | Higher monthly instalments | Decent loan payments | Lower instalments |
| Deposit | No mandatory car loan deposit in Ireland | Usually, 10% of car value | Same as Hire purchase, i.e., 10% of car value |
| Flexibility | You can sell the car anytime | You are not allowed to sell the car until last payment | Must return the car or pay balloon payment to keep the vehicle |
| Interest rates | Depend upon the personal credit score | Fixed interest rates but higher than car loans | Reasonable interest rates, but it largely based on balloon payments |
| Loan term | 12-84 months | 12-60 months | 36-60 months |
| Collateral (as car) | No collateral car loans | Yes required | Not required |
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 Loanstopocket 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.
Interest rates on the car loans typically revolve around 8.5% to 12% depending upon individual credit score and loan amount. However, online loans have more flexibility in interest rates than traditional loans.
You can get a car loan for a repayment period of 12 months to 84 months. Repaying the loan is generally affordable, where you can make fixed monthly instalments with an automatic deduction option.
Anyone with a credit score above 500 has a better chance of a car loan approval. However, with online lenders, the credit score requirements are flexible. It means individuals with a score of less than 500 can also get acceptance. There may be higher interest rates, but they can reduce the loan cost by including collateral or a guarantor.
An asset like the vehicle itself often backs a secured car loan. This must have an equal value to the borrowing amount. It brings loans at lower interest rates and longer duration. On the other hand, unsecured car loans have higher interest rates as no collateral is involved. These are particularly the short-term loans.
Loanstopocket does not impose early loan repayment penalties. Still, you need to inform us early of the prepayment so that we can make suitable arrangements for you.
Down payment requirements vary among the lenders. Generally, a 10-20% deposit is required. Depositing as much as you can will improve your loan approval chances. It further benefits you in fetching lower interest rates.
Your credit score does affect the interest rates. If you have a good credit score, lender often offers loans at lower rates. In contrast, bad credit impacts rates due to the risk factor. You need to face stricter loan terms. We can do an interest rate adjustment if you have maintained recent financial commitments.
Most of the time, only the basic documentation is needed for the bad credit car loan process. Sometimes, lenders may require extra documentation, such as a guarantor or collateral, if involved.
Online lenders usually take a few hours to approve your car loan. Sometimes, loan processing time may extend if some corrections are needed to your personal details.
If you have been rejected for a car loan, you have to improve your financial record. It means you should enhance your credit score, add a guarantor with a good credit profile, or pledge an asset and look for alternative options. Doing this will keep the lender at no risk, and thus, it may approve your loan.
Multiple car financing options are available in Ireland, which may be confusing when finding the difference between leasing and buying a car. You need to compare the loan costs of both these options. Remember, leasing may have lower interest rates, but you have no ownership. On the other hand, car loans give you ownership but may be costly than leasing.