No gimmicks, no extra charges
When it comes to financing the purchase of a car, many people simply look for the lowest rate on offer and believe it to be the best option. Headline rates may attract the most attention but many ‘car finance loans’ offered are actually hire purchase agreements.
With a hire purchase agreement you do not own the car until you make the final payment. If you experience difficulties with repayments you may be charged an additional fee for missed payments, a rescheduling fee if you need to change the terms, and a higher rate of interest may be charged on the repayments you missed. At the outset you may be charged a documentation fee and a completion fee at closure. Interest is front-loaded on these hire purchase agreements.
A credit union car loan is a personal loan. A credit union car loan is different.
What makes a car loan from Castlebar Credit Union different? Credit union rates are fair and interest repayments are calculated on your reducing balance, so you pay less interest with each repayment.
Once you are eligible for a credit union loan repayment terms can be designed around your needs.
You borrow the money from your credit union, you pay for the car, and you own the car immediately.
You arrange your finance before going shopping for a car, putting you in a stronger position. It helps to know exactly how much you have to spend. You are effectively a cash buyer at the dealers and you may be able to negotiate a better deal.
Your credit union loan is insured, subject to terms and conditions, at no direct cost to you. Other lenders may charge for this.
You can pay off your loan early, make additional lump sum repayments, or increase your regular repayment, without a penalty. Other lenders may charge extra for early repayment. But remember, at your credit union you are only charged the interest on your CU car loan based on the term you owe it for and the outstanding balance.
On a typical four year loan of €10,000, with monthly repayments of €246.49, at an APR of 8.86 per cent, the total amount repayable by the member would be €11,832.25.
It is estimated that credit unions provide approximately 30 per cent of all car finance deals, the vast majority of which was spent in the local economy, thereby assisting many local businesses and protecting many local jobs.
So, if you are thinking about your options for financing a car purchase look no further than your local credit union.
Contact the loans team on 094 902 2969 ext two or email [email protected]