Credit Union Car Loan V PCP

Many of us are considering upgrading our cars at this time of year, and with that comes the question of car finance and what the best options are. There’s lots to consider, a Car Loan, PCP or something else? Before taking out a loan of any kind, it's worth taking the time to understand how lending works. That way, you can compare the benefits and be aware of the risks.

Let’s take a look at the key differences between PCP Finance and a Westport Credit Union Car Loan.

Ownership

A PCP is a kind of hire purchase agreement where you don’t actually own the car until you make the final payment. In effect, you’re hiring the car until you pay the GMFV (Guaranteed Minimum Future Value), the large final lump sum.

Alternatively with a Credit Union Car Loan, you own the vehicle straight away, no hidden fees or conditions.

Flexibility

Because PCP payments are fixed over a set term, there is no flexibility to pay extra each month to finish up early. Whereas with a Credit Union Car Loan, repayments are flexible, and there are no penalties for paying back your loan early.

Payments

A PCP agreement is broken into three parts;

1)Deposit, usually 20-30% of the car value

2)Fixed monthly repayments, usually low as a large portion of the cost of the car is not paid until the end of the agreement, and

3)The Guaranteed Minimum Future Value a large final balloon payment, which 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. Plus, there won’t be any interest increase in your repayments should you wish to keep your car longer than 3 years.

Car Loans from Westport Credit Union

We’re delighted to announce our new car loan rates, starting from just 5.5%. Our new tiered car loan rates make our car loan more affordable and accessible than ever, so whether it’s your first set of wheels, a new family car or you’re thinking of switching from petrol or diesel to an electric vehicle, we’ve got you covered.

Features & Benefits

• Local decision making
• Flexible repayments
• Borrow up to €65,000
• No penalties for early repayments.

Not a Member? No problem

It’s never been easier to become a Member of Westport Credit Union, simply download our mobile app from the App Store/Google Play Store and join online