Car loan enquiries on the rise at Enniscorthy Credit Union

ENNISCORTHY Credit Union is reporting a recent increase in the number of car loan enquiries from the local area. The upsurge may be down to two factors. The weaker sterling may have fuelled increased interest in buying a car from the UK. Also recent media coverage of the concern around the unregulated nature of Personal Contract Plans (PCP) may have encouraged people to opt for the more traditional route of the car loan.

Commenting on the rise in car loan enquiries, Liz Cullen, Manager of Enniscorthy Credit Union said “We are firm believers at Enniscorthy Credit Union that shopping locally for a car is the best way to go with some terrific value to be had. Recently, however, we have witnessed an upsurge in car loan queries from people saying they are considering buying in the UK. The trend appears to be reflected nationally with an increase of 44% in used car imports between January and May this year.* We would urge anyone considering going to the UK to talk to us at Enniscorthy Credit Union in the first instance. Our car loan is straightforward, affordable and fair with a great value 7.1% APR rate.”**

“When you arrange a loan with Enniscorthy Credit Union before going shopping for a car, you are effectively going as a cash buyer to the car dealer, and may well be able to negotiate a better deal. This is the case whether you are buying at home or in the UK.”

Concerns raised in the media in recent weeks about the unregulated nature of PCPs are thought to be another reason behind the influx of car loan queries. PCPs are generally not sold by financial professionals and concerns have been raised that people may be entering into such agreements that they cannot fully afford, and that they do not fully understand.

Liz Cullen continued “What we may be seeing here is a renewed interest in the more flexible and straightforward credit union car loan. The essential advantages of our car loan is that you can simply borrow the money you need to pay for the car, which you own immediately, and which you can drive as much as you please, and sell on at any time you wish. Crucially, with a PCP, you need to be conscious of the mileage you are racking up on the car, because that balloon payment looming at the end of the agreement will have been calculated with your annual mileage in mind.”

“Should your financial circumstances change and you find you can no longer afford the monthly PCP repayments, you cannot sell off the car to pay your debt. With our car loan, you can sell the car at any time. If you find yourself in the happy position of being able to pay the loan back earlier, you will not be penalised for this in any way as there are no hidden transaction fees or charges.”

Enniscorthy Credit Union has also compiled some guidelines for those tempted to avail of the weaker sterling and head to the UK for their next car:

v Buy from a recognised car dealership in the UK and avoid buying privately if possible. Shop around online and ensure you are getting the best value possible. Choose your car before you go.

v Inform the UK authorities that you are exporting a car by obtaining and filling out the V5C document.

v You will need to make an appointment for a Vehicle Registration Tax ( VRT) inspection once back in Ireland, and you will also need to make the VRT payment.

v You may also need to pay VAT if the car is less than six months old or has less than 6,000 kilometres clocked up.

v You will need to purchase new registration plates.

v Ensure you are fully up to date with all requirements and documents needed for importing a car by consulting the Citizens Information and the Revenue Commissioners websites.

v Ensure you have also checked out your local car dealership. There is often great value to be found right on your doorstep. Don’t forget you have to factor in the cost of VRT, possibly VAT, new registration plates and fuel to get you home from the UK when importing a car.

“If you have made the decision to go to the UK for your next car purchase, remember to pop into us here at Enniscorthy Credit Union as you will need to arrange finance before you go. Our friendly staff will tell you all you need to know about our great value car loan rate” Liz concluded.

* Society of the Irish Motor Industry Report 2017

** For a €10,000, 5 year variable interest rate loan, with 260 weekly repayments of €45.48, an interest Rate of 6.9%, a representative APR of 7.1%, the total amount payable by the member is €11,823.96. Information correct as at 30th June 2017.