In this example a St. Paul’s Car Loan, with the Dealer Scrappage allowance, could save you €2,478.82 when compared to the 0% PCP Dealer Finance! That difference should more than cover the cost of servicing the car over the 3 years and still leave you better off.
And for the past number of years St. Paul’s have paid a loan interest rebate on all loans which in 2019 would give 5% of the loan interest back to you, a further saving of €49.44 in this case. More on Loan Interest Rebate
You will make even further savings if you have a Share Covered Loan
CASHBACK – You can get up to €400 Cashback when you get a loan from St. Paul’s to purchase a new Ford or Hyundai!
One of the big selling points of PCP finance is that at the end of the 3 years you have the choice to
- Pay the Balloon payment and keep the car
- Give the car back and walk away (you may be charged penalties if the car does not reach their “acceptable return conditions”)
- Give the car back and begin the process again with a new car, same make
The big hidden cost of PCP finance is with options 2 and 3 as you are giving the car back to cover the Balloon payment which in this example is €8,369.50. Similar 3 year old cars to the model quoted are currently advertised for sale at between €17,950 and €18,950. (www.carzone.ie 19-June-2019) However under the PCP Lease Agreement, you are only guaranteed a minimum of €8,369.50 (Guaranteed Minimum Future Value) which is a difference of €9,580 to €10,580 on the value or equity of the car.
Other benefits of a St. Paul’s Loan include:
- No restrictions on kilometers driven, or where you service your car, or on what make of car to purchase next
- You own your car from the outset, you can sell it or change it anytime you like
- You can pay off your St. Paul’s Loan early, make additional lump sum payments or increase your repayments without a penalty. Other lenders may charge you extra for paying them back faster!
- Your St. Paul’s Loan is insured, subject to terms and conditions, at no direct cost to you. Other lenders may charge for this
You can apply for a loan online now by logging in to your online account or via the St. Paul’s Garda Credit Union App
To work out the cost of your St. Paul’s Car loan, go to our Car Loan Page, or call us on 021-4313355.
Loans are subject to approval. Terms and Conditions apply.