Time to change your car

According to TheCarExpert.co.uk up to half of all used cars sold by dealerships are now financed by PCP car finance.

But what is PCP?

According to the Charles Hurst Group, Personal Contract Purchase is a form of finance that allows you to loan a car from a finance company. 

Make sure you do your research and read the small print before entering any finance agreement.

• Though the monthly payments may seem less on PCP than a normal car finance/loan agreement, remember there will be a large lump sum to be paid at the end should you wish to “own” your car. If you are nearly at the end of your PCP term, you could consider one of our lower cost loans to pay this. 

• There’s also mileage to consider, if you exceed any agreed mileage on PCP, you could incur fees per mile exceeded.

We’ve set out some examples from a local car dealership and their PCP deals in comparison to our Standard £5K+ (7.9% APR) and £20K+ (5.9% APR) loans:

Example of £20K+ value

Example of £10K+ value

Harp and Crown Car Loan Benefits in summary:

• Remember our loan interest rates are fixed for the duration of your loan.

• Loan interest (APR) is only charged on your reducing balance eg if you take out a £20,000 loan (Year 1) and in Year 2 have £17,000 to pay, you’ll only pay interest on £17,000, not the original loan value of £20,000. Banks and Car dealership finance tend to front load interest, with payments reflecting the original loan plus interest, throughout your payment term.

• We can offer an affordable monthly repayment plan, spreading the cost over a maximum 5 years (60 months) term, whereas most PCP agreements tend to be over 48 months with a large sum to pay at the end, should you wish to buy your car outright.

• Our loan rates are clearly defined and there are no hidden fees.

• We won’t charge you any penalty for paying your loan off early - members can also chip chip away at their loan via "one-off" payments as often as they wish (unlike banks and HP firms).  Simply make a debit card payment by phone for as much / little as you can comfortably afford.

• Members can apply for a loan 5 x their savings balance (with the exception of the Loyal Saver Loan which can be to taken to the value of your total savings).  If you have £2,000 in savings, you could be eligible to apply for a £10K loan (standard £5K+ loan at 7.9% APR).  If you have £4,000 in savings, you could be eligible to apply for our £20K plus loan at 5.9% APR.  If you need to top up your savings balance, just let us know.  Email creditunion@harpandcrown.co.uk 

• “Human way” to get a loan – your loan application with us will be based on more than a credit score, talk to us to see how we may be able to help you finance your new car

• Finally, your loan is protected by free life cover up to the age of *70 years old. *In the event of your death, any outstanding loan balances are cleared.

Try our LOAN CALCULATOR today to find out how much your lower cost Harp and Crown car loan could cost per month.

Contact us for more details.

Email creditunion@harpandcrown.co.uk or phone 028 9068 5198.

"Save regularly and borrow only what you need".

The Harp and Crown Credit Union provides safe, secure, flexible finances for the wider police family in Northern Ireland.