PCP Car Finance - Member First Credit Union

PCP Car Finance

If you're looking to buy a new car this year, take a look here to find out more information about PCP car finance as a financing option. This type of financing is available through your chosen car dealership, however, not many people know about the harsh realities of PCP car finance.

What is PCP Car Finance?

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.

Do you want to hire or purchase a car?

A car loan is a much better idea than PCP finance if you’re intention is to own the car at the end of the contract. Although PCP finance seems enticing with smaller monthly repayments while in the “hire” stage of the contract, however, after this you the decide whether to make a lump sum final payment to own the car or give it back. At MFCU, we have helped a lot of our members that chose PCP finance to pay off this large balloon payment by issuing car loans. 

Is there a catch with a MFCU car loan?

Not at all! With a MFCU car loan there’s no hidden fees, admin charges, transaction charges, set-up costs or balloon payments. If that’s not enough,  you can also pay off your loan early, make lump-sum repayments or increase your regular repayments, without a penalty. Take a look below at an example of loan repayments with car loans.

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.

MFCU Car Loan Example
Loan Amount
€15000
Weekly Repayments (5 years)
€70.03

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 info@mfcu.ie. 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.

For Car loans to suit you

Check out our loan calculator here.

Calculate repayments

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