Upgrading your car in 2018?

Looking to upgrade your wheels, either new or second hand? With a First Choice Credit Union Car Loan, members own their car from day one compared to PCP! Below we’ve highlighted the difference between a loan with First Choice Credit Union and PCP finance.
First Choice Credit Union Car Loan

FCCU vs PCP

First Choice Credit Union Car Loan

    1. You have ownership of the car from day one and can sell your car whenever you like.
    2. There are no hidden fees, admin charges, transaction charges or set up costs.
    3. Our loans are fully transparent and the interest is the full cost you pay, full stop.
    4. Repayments are calculated on your reducing balance, so you pay less interest with each repayment.
    5. With our Car Loan, there are no large balloon payments.
    6. You can avail of FREE Loan Protection Insurance – subject to terms, conditions and eligibility criteria – with a First Choice Car Loan. Other lenders may charge you for this.
    7. You can pay off your loan early, make additional lump sum repayments or increase your regular repayments, without a penalty!
    8. You can borrow for the full amount. Plus, you can get your approved amount in cash which makes you a cash buyer and gives you an additional bargaining chip.

The Credit Union is member owned and works on a not for profit basis, so the surplus generated by members borrowing with us goes back into our community.

The downfalls of PCP

    1. There is a lack of regulation around PCP, so people aren’t protected.
    2. Nearly all PCP’s have restrictions in respect to the condition of the car and/or the mileage you incur. So, if you drive a lot, it can mean a lower minimum guaranteed value.
    3. Also wear and tear may also mean you do not get the full value of the car agreed at the start of the deal.
    4. PCP’s are a way of trying to ensure that you will come back and buy another car from the same dealer or manufacturer. All well and good, but what if you don’t like the brand of car or range they have to offer anymore?
    5. Because a lot of the repayments are deferred, the interest costs may be low initially, but the total ends up being high over the full length of the agreement.
    6. Dealers and car-companies are able to offer lower interests rates on the deals for the first three to five years because they retain ownership of the vehicle, lowering their risk.

You can get your own loan estimate by using our Loan Calculator. Talk with a friendly member of staff you know and who knows you today in any of our branches in Castlebar, Ballyhaunis, Achill, Balla and Carnacon! Alternatively, you can apply online at any time by using our Online Loan Application Form, email us at loans@fccu.ie or call us on 094 9022 969.