Join Us
Low-Cost Loans
One Of The Best Car Loan Rates Around
Over €22 million
In Car Loans Issued Last Year
High Approval
Most Loan Applications Are Approved
Fair Lending
You Always Get a Fair Decision
Say goodbye to PCP Finance
Personal Contract Plans made it appear that owning a new car was more affordable than ever because rather than financing the full cost of the car, you were financing a portion of it at lower monthly repayments. The downside was that you had to finance the deposit and the final balloon payment.
Our PCP Buster Car Loan is a great value alternative to PCP Finance. With our PCP loan, you can tailor your repayments to suit your budget and own your car outright, at one of Ireland’s lowest rates – 5.5% (5.64% APR).
With PCP Finance, you’re essentially renting the car until you make the final payment. The final payment can be a hefty sum, and you may also have to pay for mileage penalties, excessive wear and tear, and crash damage. Our PCP Buster car loan is a more flexible and affordable option that combines low monthly payments with the benefit of owning your car outright.
Did you know that we loaned over €22 million last year to help our members buy cars? Apply for our PCP Buster car loan today and say goodbye to PCP Finance, and hello to simple and affordable repayments. You can use our handy calculator below to estimate your monthly payments and work out an affordable repayment plan.
Why choose a CLCU PCP Loan
- 5.5% variable rate (5.64% APR)
- No deposit required
- No balloon payment
- Own your car outright, from day 1 (unlike PCP finance)
- Tailor your repayments to suit your budget
- Borrow between 3 and 8 years
- Minimum loan value of €25,000 up to €80,000
- Free Loan Protection Insurance (T&C apply)
- No mileage restrictions
Apply for a loan today. Not a member? You can join & apply at the same time.
Loan calculator
- Weekly Total Interest
- Fortnightly Total Interest
- Monthly Total Interest
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. If you are experiencing difficulty repaying your loan, or believe you may in the future, please click here.
Types of Car Finance Agreements
Car finance is a popular way to purchase a vehicle because it allows you to spread the cost of the vehicle and plan your repayments. There are different types of car finance options available, including Personal Contract Plan (PCP), Hire Purchase (HP), and a standard Car Loan. Each type of finance has its pros and cons.
Personal Contract Plan (PCP) Explained
With the current shortage of used cars, and the advancements in hybrid and electric car technology, many people are considering purchasing a new car. A Personal Contract Plan (PCP) is a type of car finance that allows you to hire a vehicle for a period of time and then decide whether to buy it or give it back.
PCP Finance is often promoted by dealerships as an option for purchasing new and used cars, offering flexible financing options for different types of vehicles. The deposit can be made up of a cash payment and/or a trade-in of an old vehicle. The bigger the deposit, the lower the repayments will be. PCP finance offers lower monthly payments compared to other finance options, but you are kicking a large portion of the cost down the road in the form of the final GMFV payment.
To a lot of people, PCP Finance can be confusing, but here’s how it works:
(1) You pay your deposit and monthly payments. Often the deposit advertised is 30%, and this is to make the monthly payments look attractive and affordable.
(2) At the end of the contract, you have three options:
(i) Pay the Guaranteed Future Minimum Value (GMFV) payment to own the car. (ii) Give the car back. (iii) Take out a new PCP Finance agreement and pay the GMFV (balloon) payment, along with a deposit on a new car.
Please note: The deposit will be the difference between the market value of the car (what the dealer offers) and the GMFV. For example, if the dealer offers €17,500 for the car and the GMFV is €15,000, you will have €2,500 to contribute towards your new deposit.
When applying for car finance, you’ll need to provide information about your income, employment, and credit history. The dealer will use this information to determine your creditworthiness and decide whether to approve your application.
Whilst a PCP may look attractive on paper, you should always compare personal loans, consider your budget and financial situation, and research different lenders and their rates to find the best car finance agreement for you.
Hire Purchase (HP) Explained
Hire Purchase (HP) is a type of car finance that allows you to hire a vehicle for a period of time and own it outright at the end of the agreement. With an HP agreement, you make regular repayments over a term to cover the purchase price (minus your deposit) plus interest. It’s worth noting that as with PCP, you do not own the car until the last instalment is paid.
Our PCP Buster Car Loan
A Croí Laighean PCP Buster Car Loan is a more transparent option. You own the car from day one, and there are no hidden fees, no deposit, and no balloon payment. You can tailor the loan to suit your repayment ability, and you even get free loan protection insurance.
Here are some of the key differences between PCP Finance and a PCP Loan:
(1) With PCP Finance, you don’t own the car until you pay the balloon payment. With a PCP Loan, you own the car from day one.
(2) PCP Finance typically has lower monthly payments than a PCP Buster Loan, but with the PCP Loan, there is no deposit or final balloon payment.
(3) PCP Finance may have hidden fees, such as mileage charges and excess wear and tear charges. A PCP Loan does not have these hidden fees.
If you’re considering purchasing a new car, it’s important to understand the different financing options available to you. A PCP Buster Loan can be a more transparent and affordable option than PCP Finance. Check out our loan comparison guide to find out why you should choose CLCU for your next loan.
Here are some additional things to consider when choosing between PCP Finance and PCP Buster Loan:
Your budget: How much can you afford to spend on monthly payments?
Your plans for the car: Do you plan to keep the car for a long time, or do you want to upgrade in a few years?
With a Croí Laighean PCP Buster Car Loan, you get an incredibly transparent car loan with no hidden fees and you own the car from day 1. You can tailor the loan to suit your repayment ability and we even offer free loan protection* for extra peace of mind.
Electric Cars: Thinking of buying an electric car but you’re unsure if it will suit your needs? We asked a recent EV adopter to share their insights and let us know the pros and cons of their experience. Read the full post here.
Repayment Example:
PCP Buster Loan @ 5.5%. A PCP Buster Loan of €25,000 over 5 years would cost €477.53 per month at a variable rate of 5.5% (5.64% APR). The cost of credit is €3,652 and the total amount repayable is €28,652. Variable rates may increase which would cause the cost of credit to increase.
While every care has been taken in the production of this web page, the Credit Union, or any of its staff, cannot be held responsible for any omissions, errors, or other mistakes on the site. This PCP car loan calculator is for illustrative purposes only, and to give you, the borrower, an overview of the potential cost of borrowing.
Loan amounts and 99% approval rate is based on figures from 2020. Rates are correct as of 1/02/2022 and are subject to change. Croí Laighean Credit Union is regulated by the Central Bank of Ireland.
Frequently Asked Questions
How much can I borrow with a PCP Bsster car loan?
You can borrow from €25,000 up to €80,000 with repayment terms of between 3 and 8 years.
How competitive is the PCP Buster Car Loan?
It’s a very competitive rate. Personal loan rates with the main banks vary from 6.8% up to 10% [23/09/24 – source: bonkers.ie]. Whilst some dealers offer 0% PCP, in many cases, this applies to specific models and variants. It’s also worth noting with a PCP, you will have to pay a deposit, normally between 10% and 35%, and a balloon payment at the end (this is usually around 30%).
How is PCP so cheap compared to a standard loan?
With PCP, you’re only financing a portion of the car. If you pay a 15% deposit and the balloon payment is 30%, then you’re only financing 55% of the car cost. With a PCP Buster loan, you don’t need to save up a deposit or save for the final balloon payment. You spread the overall cost over a term that suits your repayment ability. Nice and simple.
What is Free Loan Protection Insurance?
Free Loan Protection Insurance means your loans are insured at no direct cost to you. Should a member with an outstanding loan balance die, the balance is repaid in full, subject to terms and conditions. Potential loan protection for members aged 70 years or younger, is up to €100,000, and up to €40,000 for members aged between 70-85 years. Terms and conditions apply.
Can I get approval and then shop around?
Absolutely! With our Credit Union car loan, you can get pre-approval and shop around like a cash buyer. This gives you extra leverage when trying to get a better deal.
Can I get car insurance through Croí Laighean Credit Union?
Yes, we work with Peopl insurance who offer fantastic quotes that are underwritten by some of the largest global insurers. Click here to get a quote >
Apply for a loan today
Need some help or advice?
Our member services are on hand to help in any way we can.