Personal Finance

Barry McCall gives us tips on how to avoid that cowboy contractor and St. Patrick's Credit Union unveil the benefits of availing of their car loan in the New Year.

Home improvements

Despite recent slight falls in house prices the cost of moving home is still quite prohibitive for most people. This has led to renewed interest in extending and refurbishing existing homes. But this too can be an expensive business if you don’t go about it properly.

Take even a relatively simple and straightforward job like having your windows replaced, for example. Prices quoted to this column for an average four bedroom semi-detached house ranged from around the €6,000 mark to more than double that. But how do you pick the right one. Which one is the cowboy who will leave you with ill-fitting windows and draughts and can’t be found later to fix the problems?

And don’t be fooled by the expensive companies with the big ads. In most cases these will do a perfectly fine job, but not necessarily a better one than cheaper competitors. The fact is that the big advertiser may be primarily a sales organisation which sub-contracts the actual work out to other operators.

This is where good research comes in. There really is no replacement for this. You start with your friends and their friends and find some people who have had their windows replaced recently. Ask if they are satisfied with the work, who did it, how much they paid, and how they found the contractor. When you’ve got three or four names that look satisfactory it’s time to start seeking quotes.

Honesty is vital at this part of the process. If you want the contractor to put their best put forward and give you their best price you have to be upfront with them about the process you are carrying out. When you contact them tell them that you are looking for a quote for window replacement, not that you want your windows replaced.

If they ask how many other contractors you are contacting be honest and tell them. A reliable contractor who is confident in the quality and value of their work will have no fear of such a process.

And don’t be pressured into accepting a quote by a smooth or fast talking salesperson. This may be more easily said than done, particularly when the person is sitting in your living room almost putting the pen in your hand. A good trick here is always to meet such people on your own. If they try to pressure you into accepting a quote or signing an initial contract tell them you have to consult your spouse or other party first and you’ll get back to them. They can’t really argue with this.

Once you’ve got your three of four quotes it’s then a question of selecting the one that you think is the most reasonable. Remember, the cheapest may not always be the best value. But before signing anything get references from previous customers and go and view their work. Also, if you have Internet access you can enter the company name on a search engine like Google and that will quickly show you if there have been any public complaints about them in the past.

This process applies to just about every piece of work around the house that is more major than fitting a new electric socket. When it comes to very major jobs like large extensions you might consider having an architect carry out the tender process for you. However, this service does not come cheap and the architect will probably charge about 10% of the total contract price for the full end to end design and tendering job. This can work out quite expensive so you might be as well off to do this bit yourself.

Finally, whoever it is you are dealing with, always make sure that they are members of the relevant trade or professional organisation such as RECI for electrical contractors or the Construction Industry Federation for building contractors and that they have the right insurances in place to cover both their own workers and you in case anything goes wrong.

St. Patricks Credit Union - Car Loans

Alot of people like to buy a new car in the New Year. If you are planning on buying an 08 Reg or a secondhand model and plan to finance your purchase through borrowing, then take out a loan from St. Patrick’s Credit Union and save yourself hundreds of euro in the process.

Their interest rate is just 6.5% pa. It is one of the lowest rates offered for car loans by any financial institution in Ireland. Example: The repayment on a €10,500 loan with the Credit Union over three years is €321.82 per month – ie a total interest charge of €1,085.52.

Compare this with the same loan from a bank or building society with a typical monthly repayment of €334.00, which would result in a total interest charge of €1,524 The credit union loan would save you of €438.48.

No hidden charges or extra payments at the start or end of the loan term, as with banks and building societies.

• AIB Bank charges a Documentation Fee of €63.46 and a Completion Fee of €12.70
• Bank of Scotland charges a Documentation Fee and a Completion Fee of €75 each

There are no penalties for making lump sum payments or clearing your loan early. National Irish Bank charges €30 for clearing your fixed rate loan early and does not allow lump sum payments to be made. St. Patrick’s offer free Loan Insurance on all loans. If you are in good health at the time of making your application, your loan balance is insured (in the event of death) at no extra cost.
Banks and building societies do not provide such a service free-of-charge.

For further information or to make an application please see our website www.stpatrickscu.ie or contact the office on 01-6325100.