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Taking out a car loan can be a complex process. There are so many finance options available from car dealers and large financial institutions that it is easy to become confused. However, it doesn’t have to be that way. Let the B&S Credit Union break it down for you!
Why is a B&S Credit Union Loan Better?
- You OWN the car from the outset
- We do NOT charge any additional fees
- Our terms and conditions are completely transparent
- NO ‘balloon’ payments
- NO mileage restrictions
- NO penalties for early repayment or lump sum payments
- NO penalties for payment rescheduling
- FREE Loan protection insurance (T&C’s apply)
- If you arrange your finance with B&S Credit Union BEFORE you go car shopping, you will be in a much stronger negotiating position.
What is a PCP?
Personal Contract Plans (PCP)’s are a widely used car finance option, however they are among the least flexible forms of finance. They are effectively a lease agreement between the buyer and the car dealership/garage. You usually cannot increase your monthly payment if you want to, nor can you extend the term without paying a reschedule fee. You are effectively hiring the car for a fixed period. Unlike our personal loan, you do not own the car under a PCP:
At the end of the term the buyer is left with three options:
- Pay the balloon payment owing on the car and then you become the owner.
- Give the car back and walk away. However, you may be charged penalties if it does not reach the ‘acceptable return conditions’ (eg mileage limits).
- Give the car back and sign into a new PCP for a new car, but of the same make.
Making Your Decision
Before you make your final decision, make sure you 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
For more information on PCPs and how they work go to https://www.consumerhelp.ie/pcp
Have your eye on a Car? Why not talk to us today on Freephone 1800 290 390, apply online: https://www.bandscu.ie/Apply-Online or call into our office: B&S Credit Union Limited, Main Street, Ballybofey.
8.2% (8.54% APR)*
Representative example as at 06/01/2023
* This rate is applicable only for approved CAR Loans from €12,000
Loan repayment term 3-6 years.
Loans are subject to approval. Terms & Conditions apply. If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating which may limit your ability to access credit in the future.
B&S Credit Union Limited is regulated by the Central Bank of Ireland.