Thinking of buying or leasing a new car?
Car manufacturers advertise PCP leasing finance rates to entice you to lease a car from them for typically three years. At the end of the term you can buy out the lease, by paying the balloon payment, enter another lease agreement or return the car.
When comparing PCP leasing with a car loan, you cannot compare by APR alone because with PCP finance you are postponing paying a large portion of the price of the car for a number of years. Then, at the end of the term you could face penalties and charges for not meeting the acceptable return condition of the car or exceeding kilometers allowed.
You are better off if you buy the car with a car loan from St. Paul’s Garda Credit Union as you will be treated as a Cash buyer and can negotiate real discounts and save yourself money. You can drive the car as often as you like with no worries about exceeding the kilometers limit, and you can change or sell the car whenever you choose because you own it.
If you already have PCP finance, you can get a car loan from St. Paul’s to clear the Balloon payment when due.