Why a Car Loan from Enniscorthy Credit Union Car Loan is the best deal on Car Finance

IN RECENT years PCPs, or Personal Contract Plans, have become a popular way to finance a new car. Many dealerships can offer you a very attractive-sounding deal on the spot – affordable deposit, low monthly payments, trade in the car after 2-3 years. What could possibly go wrong?

Unfortunately, it’s not quite as simple as all that and there are a number of pitfalls to be aware of when entering into a PCP agreement – most of which can be avoided completely by taking out a car loan with your local credit union instead. Here are some reasons you should talk to Enniscorthy Credit Union rather than enter into a PCP.

OWNERSHIP

A PCP is a kind of hire-purchase agreement, where you don’t actually own the car until you make the final payment. This means if you want to change cars or encounter difficulties during the term of the contract, you can’t sell the car without the agreement of the finance house/ dealer. With a credit union car loan, the car is yours from day one.

FLEXIBILITY

Because PCP monthly payments are fixed over the term of the agreement, you can’t pay extra each month to finish up early and you will be charged a fee if you need to restructure the agreement in any way. With the credit union there are no penalties for paying off a loan early, so you can pay more than the minimum each month if you wish.

BALLOON PAYMENTS

A PCP is broken into three parts – deposit, fixed monthly repayments and a large final payment, often called a balloon payment, that can be anything up to 50% of the value of the car. You won’t own the car outright until you pay off that final amount. With a credit union loan there are no nasty surprises left at the end of the term – your payments will stay the same throughout.

MILEAGE

As part of a PCP agreement, there is usually a restriction on how much mileage you put on the car. Going over the agreed maximum mileage can affect the final value of the car and end up costing you more money. The credit union have no interest in how much driving you do in your own car.

If you are thinking of changing your car talk to us at Enniscorthy Credit Union about a car loan. You can apply for a car loan from us and you have 60 days to collect the money, so you can shop for your car with your loan approved and only start making payments once it has been drawn down. For further information on a car loan, please call in to us in Enniscorthy, Ballymurn, Murrintown or Taghmon, or email us at loans@enniscorthycu.ie.

Check out our website enniscorthycu.ie for more information on our Car Loans.