Benefits of a credit union car loan
Ballinascreen Credit Union offers personal loans for a range of purposes, including purchasing a new or used car loan. There are many advantages of choosing a credit union loan rather than other methods of car finance. A summary of car finance options is shown below.
Overview of car finance options
Credit Union Loan
- No deposit required
- Flexible repayments
- No fees or charges
- Own the car outright from the outset
- Early repayment at no cost
Hire Purchase
- Deposit required
- Admin fees or charges
- Will not own the car until final payment has been made
- Car could be repossessed if you do not maintain repayments
Personal Contract Purchase (PCP)
- Deposit required
- Admin fees or charges
- “Balloon Payment” needed to secure car ownership
- Possible mileage restrictions
- Credit Check required
Points to consider when choosing car finance
There are a number of key factors you should consider when looking for car finance including;
1. Shop around Compare the different types of car finance deals that are available. Look at the APR (Annual Percentage Rate) and the total cost of borrowing associated with each deal to identify the one that suits you.
2. Don’t stretch your finances Only sign up to what you can afford. Don’t over-extend yourself to get that better model and make sure you can afford the monthly repayments. Remember that if you pay a bigger deposit then the monthly bills will be smaller and the overall costs will be kept down.
3. Be aware of additional charges Check the small print and pay particular attention to additional charges that you might incur if you decide to pay the loan off early, or if you exceed the mileage limit.
