PCP Car Finance is a growing trend in Ireland. This is a hire-purchase agreement which means that the car buyer does not own the car until they have paid all the monthly instalments on this agreement, along with one final large payment at the end (known as the ‘balloon payment’). Naturally we’re not fans of the PCP finance route at MFCU. We would instead recommend our Car Loan which gives our members a promotional loan interest rate, and means you own the car from the beginning.
A recent report by Carzone showed that almost 30% of people are unsure what happens at the end of a PCP agreement. This is where the balloon payment can catch many by surprise.
“Members who are faced with balloon payments are eligible for our Promotional Car Loan interest rate.”
How can MFCU help?
As mentioned, one of the biggest issues with PCP is the final balloon payment faced by car buyers. This means that you either hand the car back and are left with nothing after years of repayments, or you pay the large sum to buy the car outright. Our members who are faced with balloon payments are eligible for our Promotional Car Loan interest rate. This means that you can apply for a Car Loan and spread this repayment over a longer period, just like you would do with a used car loan.
What should I do now?
If you’re stuck with a PCP Balloon Payment, consider our Car Loan. Even if you’re not sure of your next step – get in touch. You can call us on (01) 851 3400, message us on Live Chat, or email email@example.com. If you’re not in a PCP contract, we would strongly recommend our Car Loan to buy your next car. Open up our Loan Calculator and see how much it will cost. You might be surprised at how affordable a Car Loan with MFCU can be.
Lending criteria, terms and conditions apply.
WARNING: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating which may limit your ability to access credit in the future.
Congratulations to the winners of our Prize Draw in November 2022, where €50,000 in cash prizes was up for grabs. Sign up for future draws in any MFCU branch. Winner Prize Dominic Casey €15,000 Karen Lawlor €5,000 Lisa Crowe €5,000 Teresa Caffrey €2,000 John Woods €2,000 Sandra Boylan €2,000 Amos Phillipson €2,000 Donna Coleman €2,000 […]
Congratulations to the winners of our Prize Draw in October 2022, where €50,000 in cash prizes was up for grabs. Sign up for future draws in any MFCU branch. Winner Prize Saorla Kelly €15,000 John Cooke €5,000 Kathleen O’Neill €5,000 Shane Burke €2,000 Edward Morgan €2,000 Lee Chandler €2,000 Jimmy Lodge €2,000 Margaret McCann €2,000 […]
There’s lots of talk about credit union mortgages recently. But the truth is, MFCU have offered mortgages to our members for a number of years. That means we have plenty of experience in helping you land your dream home. We’ve put together a short post to highlight the benefits of getting a mortgage with us. […]