Choosing the Right Finance to get Motoring in 2020

Buying a car can be complicated enough without all the car finance that comes with it. It’s all too easy to get distracted with attractive headline rates. At Roscommon Credit Union Limited we encourage car buyers to consider your car finance options carefully in order to get the best value for your money.

Unless you are a cash buyer, when buying a new car the chances are you are likely to consider opting for a PCP or personal loan to finance your purchase. We have put together a no-frills explanation of PCP finance and how PCPs differ from a traditional car loan to help you make an informed finance decision.

 What is PCP Finance?

First off, PCP simply stands for Personal Contract Plan. And ultimately, that’s where the simplicity ends. Don’t get us wrong, we know PCP finance is very convenient. But we also know it’s incredibly inflexible.

Essentially PCP finance is a lease scheme. It makes financing a new car seem affordable – due to low monthly repayments. In effect, with a PCP you hire the car for a period of time, usually between three and five years. And you make the repayments over this time. At the end of the PCP agreement, you’ll have to make the balloon payment in order to actually own the car. This payment is also known as the guaranteed minimum future value (GMFV).
The balloon payments can come as a nasty sting in the tail for many. Bernie Moran, CEO Roscommon Credit Union Ltd. explains “members are often shocked to find they have to make a substantial balloon payment at the end of their PCP agreement, and come to us to take out a personal loan to cover the cost of this payment. I would urge anyone looking to buy a new car to speak to us, we offer great value flexible loans, with a host of free member benefits and importantly the personal touch, we take the time to understand your needs and build a loan around you!”

Crucially, with a PCP you are also restricted with what you do while you are still ‘hiring’ the car. If your financial circumstances change and you find you can no longer afford the monthly repayments, you can’t sell the car to pay your debt, as it’s not yours to sell.
What is the difference between PCP finance and a Credit Union Car loan?

The simplest way to finance the purchase of a new car is a personal loan. Unlike a PCP, a credit union car loan is far more clear cut, you own the car from the outset. There are no hidden fees or charges and definitely no balloon payments or mileage restrictions, plus you can pay off your loan early, make additional lump-sum repayments or increase your regular repayments, without a penalty.

Another advantage is that you essentially are a cash buyer so this should give you some scope to shop around and negotiate a higher discount. If you want to own the car you’re driving and want the freedom to decide when to sell it, a credit union loan may just be for you.

Roscommon Credit Union Ltd are offering its members there LOWEST EVER CAR LOAN rate of 5.9% (APR 6.08%)* for the months of January and February. The table below offers representative examples, to Apply, Speak with a member of our team Today, call 090 6626657, email info@roscommoncreditunion.ie or call in to any of our 3 branch offices to discuss your loan requirements.

Submit a Loan Enquiry


Over 36 months

INTEREST RATE 5.9% (6.08% APR variable)






5.9% (APR 6.08%)





5.9% (APR 6.08%)





5.9% (APR 6.08%)





5.9% (APR 6.08%)





5.9% (APR 6.08%)





5.9% (APR 6.08%)




*This Limited Offer is valid until 28/02/2020. All loans are subject to approval. Terms and Conditions apply. Approved loans must be drawn down on or before February 28th, 2020.

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