PCP Car Finance | Life Credit Union

PCP Car Finance

You know the old saying; If it looks too good to be true..

By Admin | October 28, 2016

You know the old saying; If it looks too good to be true…

 

pcp-or-not-image2Not so long ago, buying a car was easy. You chose a car, found out the cost of buying it, the trade in value for your own car and then worked out if or how much you need to borrow to pay for it. Simple!

 

For anyone who has tried to finance a car purchase in recent times, the process can now be a lot more complicated. One emerging trend in car finance is the introduction of Personal Contract Plans (PCPs). Essentially a PCP is a lease scheme which makes financing a new car seem affordable for lots of us with low monthly repayments. But all is not what it seems!

 

COMPARE PCP WITH A CAR LOAN FROM US

 

Our Car Loan

PCP Car Loan

Do I own the car from the outset?YesNo, the garage own the car until the final payment is made
Do I have to pay an initial deposit?NoYes, typically a deposit of 10-30% is required
Can I sell the car at any time?Yes, it is 100% yoursNo, you do not own the car until the final payment
Are there any extra fees?NoYes, there are often documentation, administration and completion fees
Can I pay off my loan early, make additional payments or increase my monthly payments?YesPCPs are often the least felxible for of finance, and payments cannot ususally be changed
Is my loan insured?Yes, subject to terms & conditions your loan is insured in the event of your death at no extra chargeNo, this is not standard with PCP’s and if available will incurr an extra charge
Is there a cap on my annual mileage?No, the car is 100% yours with no restrictionsYes, there is often a cap on the annual milegae that you are allowed to clock up over the period of the agreement
Do I own the car at the end of the agreement?Yes, you actually own the car when you buy itNo, you only own the car once you have made the final balloon payment at the end of the PCP agreement
Does my interest reduce with my reducing balance?Yes, repayments are calculated on your reducing balance, so you pay less interest with each paymentNo

 

So, as you can see, it’s not always as good as it first looks. Choosing us for your car loan is the smart thing to do, and means that you own your car from day one. Come in a talk to us today and we’ll help get you on the road!

Share this News article

BUMPER CAR LOAN

Get the new car you've always wanted - €20,000 to €40,000!

Calculator is based on our current lending rates and is only intended as an indication of payments. Lending is subject to a credit assessment. Terms & Conditions Apply

BUMPER CAR LOAN
Loan amount € 20,000 APR* = 6.43 %
  • Loan Amount € 20000
  • Repayment €---
  • Loan Term 1 Years
  • Total Repayments €---
  • Total Cost of Credit 1 Years

*APR = Annual Percentage Rate

CAR LOAN

Own your car straight away - no balloon payments, no mileage restrictions!

Calculator is based on our current lending rates and is only intended as an indication of payments. Lending is subject to a credit assessment. Terms & Conditions Apply

CAR LOAN
Loan amount € 1,000 APR* = 8.57 %
  • Loan Amount € 1000
  • Repayment €---
  • Loan Term 1 Years
  • Total Repayments €---
  • Total Cost of Credit 1 Years

*APR = Annual Percentage Rate

HOME IMPROVEMENT

Make your house the home you've always wanted, with our low cost Home Improvement loan over €10,000

Calculator is based on our current lending rates and is only intended as an indication of payments. Lending is subject to a credit assessment. Terms & Conditions Apply

HOME IMPROVEMENT
Loan amount € 10,000 APR* = 8.57 %
  • Loan Amount € 10000
  • Repayment €---
  • Loan Term 1 Years
  • Total Repayments €---
  • Total Cost of Credit 1 Years

*APR = Annual Percentage Rate

PERSONAL LOAN

A loan for the things that matter most to you - now that's personal!

Calculator is based on our current lending rates and is only intended as an indication of payments. Lending is subject to a credit assessment. Terms & Conditions Apply

PERSONAL LOAN
Loan amount € 1,000 APR* = 9.93 %
  • Loan Amount € 1000
  • Repayment €---
  • Loan Term 1 Years
  • Total Repayments €---
  • Total Cost of Credit 1 Years

*APR = Annual Percentage Rate

SECURED LOAN

Up to 60% loan to value, with payment term up to 20 years

Calculator is based on our current lending rates and is only intended as an indication of payments. Lending is subject to a credit assessment. Terms &amp: Conditions Apply

SECURED LOAN
Loan amount € 1,000 APR* = 4.07 %
  • Loan Amount € 1000
  • Repayment €---
  • Loan Term 1 Years
  • Total Repayments €---
  • Total Cost of Credit 1 Years

*APR = Annual Percentage Rate

EASY LIFE LOAN

Move multiple loans to us for one more manageable monthly payment

Calculator is based on our current lending rates and is only intended as an indication of payments. Lending is subject to a credit assessment. Terms & Conditions Apply

EASY LIFE LOAN
Loan amount € 1,000 APR* = 8.57 %
  • Loan Amount € 1000
  • Repayment €---
  • Loan Term 1 Years
  • Total Repayments €---
  • Total Cost of Credit 1 Years

*APR = Annual Percentage Rate

STUDENT LOAN

Let us take the stress out of college with a low rate Student loan.

Calculator is based on our current lending rates and is only intended as an indication of payments. Lending is subject to a credit assessment. Terms & Conditions Apply

STUDENT LOAN
Loan amount € 1,000 APR* = 6.17 %
  • Loan Amount € 1000
  • Repayment €---
  • Loan Term 1 Years
  • Total Repayments €---
  • Total Cost of Credit 1 Years

*APR = Annual Percentage Rate

BIG LIFE LOAN

Borrow over €40,000 for the lowest rate on the market!

Calculator is based on our current lending rates and is only intended as an indication of payments. Lending is subject to a credit assessment. Terms & Conditions Apply

BIG LIFE LOAN
Loan amount € 40,000 APR* = 6.17 %
  • Loan Amount € 40000
  • Repayment €---
  • Loan Term 7 Years
  • Total Repayments €---
  • Total Cost of Credit 1 Years

*APR = Annual Percentage Rate

INDI LOAN

A loan for 18 – 25 year olds at an incredibly low rate

Calculator is based on our current lending rates and is only intended as an indication of payments. Lending is subject to a credit assessment. Terms & Conditions Apply

INDI LOAN
Loan amount € 1,000 APR* = 8.57 %
  • Loan Amount € 1000
  • Repayment €---
  • Loan Term 1 Years
  • Total Repayments €---
  • Total Cost of Credit 1 Years

*APR = Annual Percentage Rate

Contact information

Are You a Member of Life Credit Union?

Please note by submitting your information, you are agreeing to the terms and conditions of our privacy notice.