The headline rates on some car finance deals such as PCPs can easily distract from a range of additional charges and a great deal of inflexibility. With a personal car loan from Mulcair Credit Union, you own the car from the outset. If you run into difficulty, you can talk to us to adjust the repayment schedule and if you are in the happy position of being able to repay the loan early, you can do so without any complications or rescheduling fees.
PCPs are among the least flexible forms of finance. Essentially they are lease schemes which makes financing your car affordable due to low monthly repayments. You have, in effect hired the car for a particular period of time, usually 3-5 years, while you make these repayments. At the end of the agreement, you will have to make the balloon payment in order to own the car.
If you arrange finance with Mulcair Credit Union before going shopping for a car, you are in a much stronger position. You are effectively going as a cash buyer to the car dealer, and may well be able to negotiate a better deal. So if you’re thinking about bursting that balloon payment you should consider your local credit union.
A few things to consider before signing a PCP
- To extend the term of a PCP you may be charged a rescheduling fee.
- Take note of the cap on the number of mile/kilometres you are allowed to clock up over the period of the contract.
- You may be requested to commit to certain car servicing agreements.
- Ensure you always enquire about additional fees and charges, you are entitled to a list of all additional charges so ask the garage for this before you sign any agreement.
For more information on PCP’s and how they work check out; http://www.consumerhelp.ie/pcp