UK Loans in Euros

- A
- Arturo Ui
  
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posted
18 years ago

Sat, Feb 4, 2006 3:23 PM

I'm looking to buy/import a car from Germany, Netherlands or Belgium but live here in the UK.

I'm looking to finance the car, but will need a loan that I can repay in GBP via direct debit from my UK bank, but will want to draw down the loan in Euros, I really don't want to change the money from GBP to EUR as the change transaction will cost me.

Are there any recognised/reputable finance companies that will do this that will loan to me, based on a loan value of approx. 14,000 GBP? Has anyone successfully done this before or will I have to take the change transaction costs 'on the chin'?

Unless someone can persuade Lancia to start selling here in the UK again!

Artie

- A
- Andy Pandy
  
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posted
18 years ago

Sat, Feb 4, 2006 4:19 PM

Well if you have to pay for the car in EUR and your income is in GBP, you have to change money somewhere along the line, whether it is a EUR loan that you are paying for in GBP, or a GBP loan which you take out and convert to EUR to pay for the car.

Can you pay for the car by debit card? If so, you could get a loan for GBP

14,000, open a Nationwide flex account and pay the money into it, and pay for the car by debit card. You'll get a rate pretty close to the interbank rate. Although check if there are any limits on foreign debit card payments.

- J
- john boyle
  
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posted
18 years ago

Sat, Feb 4, 2006 6:09 PM

In message , Arturo Ui writes

You would not be able to set up a Direct Debit that involves a currency exchange. You would need to remit a fixed amount of euros every month by bank transfer. I really don't want to change the money from GBP to EUR as the change

This doesnt make sense. If the loan is in Euro, then you will need to make a currency exchange every month, which will work out far more expensive than one single exchange at the beginning, in addition you expose yourself to exchange rate fluctuations during the life of the loan and because the loan payment is denominated in Euro the sterling amount will change every month.

Why are you asking for the loan in GBP?

Yes, but it will work out cheaper than the way you planned.

I suggest you ensure the loan is repaid over a period shorter than the expected life of the car./ If it is anything like the expected life of the Lancias that used to be sold in this country, dont take the loan out for more than few months. :-)