Credit Union Car Loan Vs PCP Finance - Capital Credit Union

Credit Union Car Loan Vs PCP Finance

Credit Union car loan VS PCP Finance?


There are many factors to consider when looking for car finance. What kind of credit score do you need to buy a car? Should I get a new car through PCP? Is it better to finance through a bank/car dealership or the Credit Union?


All these questions can cause a headache before you even get to the fun part (picking out your dream car). Crafty sales words like cheap car loans, 0% finance, and 3 hour approval rope you into finance deals that you might not be fully aware of the long term conditions.

Did you know if you buy a car through PCP finance, you don’t own the car until the last payment is made?


Credit Union Car Loan Vs PCP Finance


You might also notice the term balloon payment thrown around; this is basically the remaining amount to repay at the end of PCP deal for example €8,000 even though your car maybe worth €5,000. Transaction and administration fees tend to build up unknowingly so if you are thinking of taking out a car loan with other financial institutions, don’t bank on it!


Benefits of a Credit Union Car Loan


Visit your local Credit Union and arrange your finance first. This way you will now have bargaining power when picking out your car and not fall into any PCP balloon payment traps. The beauty of taking out a loan with the Credit Union is:

  • You own your car from the first payment and not the last
  • No restrictions on what car you can by
  • No mileage limits
  • No penalties for early repayment of loan


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How to apply for a Credit Union Car Loan


A lot of people still think you need to have savings to borrow from the Credit Union, this is not true. To apply for a loan, all you need to do is become a member. You can apply for a loan the same day you become a member. Loans are assessed on your ability to repay. Why not see how much you can borrow on our Credit Union Loan Calculator.








What documents do I need for a Credit Union Car Loan


If you are an existing member of Capital Credit Union, you will need some documents such as photo id e.g. passport, proof of address e.g. recent bill and three months recent bank statements. Additional or less documents may be required depending on the size of the loan.



If you are not a member, why not join today?



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