With thousands of motorists across Louth and Meath considering purchasing a new car or upgrading this Summer, Drogheda Credit Union have put together a Smart Buyers Guide to Car Finance to help customers better understand their finance options and choose the solution that best suits their needs and budget.
With so many finance options available when purchasing a car, it can be difficult to know which choice is right for you. “Many people are naturally drawn to the lowest rate when financing a car,” said Cian Matthews, Lending Manager, Drogheda Credit Union. “However, it’s important to understand exactly what you’re signing up for. The lowest rate doesn’t always tell the full story, and some agreements can include additional fees, ownership restrictions or large final payments.”
Cian Matthews from Drogheda Credit Union spoke to us about the top questions you should consider before purchasing a new car.
What’s the first thing I should consider before buying a new car?
Before looking at cars, look at your budget. The monthly repayment figure is most important but don’t forget to consider insurance, tax, fuel, servicing and unexpected repairs. It’s important to be comfortable with the overall cost of owning the vehicle, not just the monthly payment.
Does the lowest advertised rate always mean the cheapest finance option?
Not necessarily. A low rate can sometimes be accompanied by administration charges, documentation fees or a final balloon payment. Always look at the total amount you’ll repay over the length of the agreement and ask about any additional costs before signing anything.
Who owns the car when it’s being financed?
That depends on the type of finance. With a Drogheda Credit Union Car Loan, you own the vehicle outright from the beginning. With a Hire Purchase agreement, the finance provider owns the car until the final repayment has been made.
What is a balloon payment?
A balloon payment is a large lump-sum payment that can fall due at the end of some finance agreements. While lower monthly repayments can seem attractive, buyers should always be aware of any final payment they may need to make before taking ownership of the vehicle.
Can I pay off my car loan early?
This is an important question to ask. At Drogheda Credit Union, members can repay their loan early, make extra repayments or increase their repayments without penalty. Not every finance agreement offers the same flexibility, so it’s worth checking the terms carefully.
Are there hidden fees I should watch out for?
You should always ask whether there are any set-up charges, documentation fees, completion fees or penalties for missed repayments. Understanding all costs upfront can help avoid surprises later on.
What’s the best piece of advice you would give someone buying a car?
Take your time and compare all your options. Consider all factors, ownership, flexibility, fees, early repayment options and the total cost of credit. A little research before you sign can save you money and provide peace of mind.
Whether purchasing a first car, upgrading to a family vehicle, or making the switch to an electric car, Drogheda Credit Union wants to ensure you fully understand the finance options available before committing to a finance agreement.
Drogheda Credit Union currently offers a standard Car Loan from 8.9% (9.29% APR) and an Electric Car Loan from 5.9 (6.08% APR). For more information or to apply online, in app or visit https://droghedacu.ie/car-loans/
Drogheda Credit Union is regulated by the Central Bank of Ireland. Loans are subject to approval. Terms and Conditions apply.
This is a sponsored article in partnership with Drogheda Credit Union.
