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Refinance PCP or credit union loan?

  • 29-09-2020 7:57pm
    #1
    lcstress2012
    Registered Users, Registered Users 2 Posts: 598 ✭✭✭


    Hi, I’m going to keep my car that I have on pcp. Balloon payment is €8,000. Should I refinance with finance company or take out a credit union loan.

    Anyone been in this position what’s the best thing to do in regards to interest rates etc.?


Comments

  • #2
    bazz26
    Registered Users, Registered Users 2 Posts: 51,363 ✭✭✭✭bazz26


    Surely going with which ever costs you the least amount in interest over the term, makes the most sense?


  • #3
    keysersoze0330
    Registered Users, Registered Users 2 Posts: 2,051 ✭✭✭keysersoze0330


    lcstress2012 wrote: »
    Hi, I’m going to keep my car that I have on pcp. Balloon payment is €8,000. Should I refinance with finance company or take out a credit union loan.

    Anyone been in this position what’s the best thing to do in regards to interest rates etc.?

    Compare the cost of refinancing with the cost of the credit union loan. Bear in mind the refinance monthly payment will probably be more than you were paying previously, as it’s not a ‘new’ car anymore and different interest rate may apply.


  • #4
    ShadowHearth
    Registered Users, Registered Users 2 Posts: 22,929 ✭✭✭✭ShadowHearth


    Check what apr both offer. You can decide over how many years you want to take loan too. My bet will be that dealer will actually offer you better apr. Keep in mind, you don't need to refinance 8k. You could put 2k of your own and finance only 6k etc.


  • #5
    carfinder
    Registered Users, Registered Users 2 Posts: 314 ✭✭carfinder


    Rate is obviously important - I doubt the refinance rate from finance company will be any better than most CU's rates. The key difference being your car is not held as security on the loan with the CU. This might affect you if you decide to sell the car privately during the term of the refinanced loan, as the potential buyer will run a car check and find finance owing on yours if you go with the finance company. Its not a big deal to sort out but might put off a buyer - worth taking this in to consideration.


  • #6
    lcstress2012
    Registered Users, Registered Users 2 Posts: 598 ✭✭✭lcstress2012


    carfinder wrote: »
    Rate is obviously important - I doubt the refinance rate from finance company will be any better than most CU's rates. The key difference being your car is not held as security on the loan with the CU. This might affect you if you decide to sell the car privately during the term of the refinanced loan, as the potential buyer will run a car check and find finance owing on yours if you go with the finance company. Its not a big deal to sort out but might put off a buyer - worth taking this in to consideration.


    That’s the thing I won’t be selling the car for a good few year down the line, so I won’t have to worry about any outstanding finance being on the car for a potential buyer.


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  • #7
    carfinder
    Registered Users, Registered Users 2 Posts: 314 ✭✭carfinder


    lcstress2012 wrote: »
    That’s the thing I won’t be selling the car for a good few year down the line, so I won’t have to worry about any outstanding finance being on the car for a potential buyer.

    Go with the cheapest APR in that case! It shouldn't have any effect on the price of the car. You have a contract for the purchase of a car presumably so finance option should not affect the price


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