Taking out a Car Loan is a common part of people’s financial planning but it shouldn’t be a decision filled with confusion. There are so many finance options now available, that it is easy to become distracted by the headline rate. Let us break it down for you!

Why is a Credit Union Loan Better?

  • you own the car from the outset
  • we do not charge any admin or transaction fees
  • our terms and conditions are completely transparent
  • no balloon payments
  • no mileage restrictions
  • repayments calculated on your reducing balance
  • no penalities for early repayment or lump sum payments
  • no penalities for payment rescheduling
  • Free Loan protection insurance (T&C’s)
  • if you arrange your finance with Rathkeale & District Credit Union before your car shopping you will be in a much stronger negotiation position

What is a PCP?

Personal Contract Plan (PCP)’s are a car finance option now available, however they are among the least flexible forms of finance. They are effectively a lease agreement between the buyer and the car dealership or garage.

At the end of the term the buyer is left with 3 options

  1. Pay the balloon payment owing on the car and keep it.
  2. Give the car back and walk away. You may be charged penalties if it does not reach their “acceptable return conditions”.
  3. Give the car back and sign into a new PCP for a new car, but same make.

Making Your Decision

Before you make your final decision, read all the small print

  • There can be hidden costs with PCPs
  • Compare the total amount payable on a credit union car loan (cost of credit) with the PCP cost (the deposit, plus monthly repayments and final payment)
  • Compare the terms and conditions

Got your eye on a Car? Click here to use our loan calculator to calculate your repayments

Talk to us today about your new car. Call 069 64444, email us or call into one of our branches.

For more information on PCP’s and how they work check out; http://www.consumerhelp.ie/pcp