Our Loans and Rates

Tipperary Credit Union’s standard loan rate. This rate is available for loans such as Holidays, Special Occasions, Bridging Loans, Medical Expenses etc. Top ups are available on this loan rate.

Proof of earnings, Guarantor and/or other conditions may be required. Normal Terms up to 5 years. Up to €60,000 unsecured.

This Loan product is available for new lending between €5,000 (Home Improve)/€10,000 (Business) and €60,000 where the loan purpose is either structural home improvement or for Business Purposes. Expenditure must be verified (Invoices/Quotations, Business Plans etc). Contact the credit union for an information brochure.

Normal Terms up to 5 years. Security required for loans above €60,000.

8.5% APR. With a Tipperary Credit Union car loan you own your car from day one. Have your finance arranged before you enter the dealers showroom, this puts you in control. Terms up to 5 years. Max unsecured loan of €60,000.

Benefits of  Tipperary Credit Union Car Loan:

•  Arrange your car finance quickly and conveniently with Tipperary Credit Union.
•  Greater purchasing power – with an “up-front” car loan from your Tipperary Credit Union, you can shop around for the deal that suits you.
• You are the owner of your car! Finance companies retain ownership of a car until the last repayment is made. If you default, the car is repossessed.
• Simple paperwork and we don’t have a minimum amount you can borrow.
• No small print and no surprises – what you see is what you get, great value and total transparency.
•  No Balloon Payment, No Mileage Restrictions – Just Your Car, Your Way.
• *Free Life Loan Protection Insurance.

Normal Lending Terms and Conditions Apply. Tipperary Credit Union is regulated by the Central Bank of Ireland.

*Free Loan Protection Insurance subject to Terms and Conditions.

When it comes to financing the purchase of a car, personal contract plans (PCPs) has seen a dramtic increase over the last number of years. People need to be aware of what they are signing up to when  they enter into a PCP loan. Below is an article from the Competition and Consumer Protection Commission which explains what exactly what a PCP loan is.  Remember we at Tipperary Credit Union beleive that our alternative to a PCP loan will help you get on the road with flexible repayments, no hidden charges or conditions, no balloon payment at the end and more importantly you own your own car from day one!

Below is the link to the article on the Competition and Consumer Protection Commission website.

http://www.consumerhelp.ie/index.jsp?a=1381&n=482&p=329

Pros

•        Low monthly repayments
•       Small deposit 
•        A choice of what to do at end of repayment term
•        Quick and easy to arrange

Cons

•           Mileage and condition of car affects the costs
•           Total amount paid may be more than with hire purchase
•           Have to pay the outstanding balance to keep the car
•           You don’t own the car until the final repayment

Many car dealers are now offering finance in the form of a Personal Contract Plan (PCP) to consumers when they are buying a car. PCPs can appear very attractive because of the low monthly repayments and the convenience of being able to buy your car and sort out your finance in the same place. However, it is important to understand how these products work before you sign any agreements.

How does a PCP work?

Example of a typical 0% APR PCP repayment schedule

Comparing a PCP with a personal loan

How flexible is a PCP?

What to watch out for

How is interest charged?

Can your car be repossessed?

PCP and your credit record
Security tips

How does a PCP work?

A PCP is a type of hire purchase agreement.  You don’t own the car until you have made the final repayment. With a PCP, repayment is broken down into three parts:

The deposit – the deposit is typically between 10% and 30% of the value of the car, depending on the finance provider. Your deposit can be paid in cash or if you already own a car, you can trade this in for part or all of the deposit, depending on its value.

Monthly repayments – PCP agreements are usually made for terms between three and five years. PCPs generally have low monthly repayments, which can make them seem more affordable when compared to other forms of finance.

Guaranteed Minimum Future Value (GMFV) – The GMFV is the amount you will have to pay to own the car at the end of the agreement. It is calculated by the finance company and is based on its estimate of the future value of the car at the end of the agreement, e.g. 3 or 5 years. It takes into account such things as, the car you are buying, length of agreement, the condition of the car at the end of the agreement and your annual mileage.

When your agreement ends: At the end of the PCP agreement, there are a number of options depending on whether you want to carry on or end the agreement:

Pay a final payment (the GMFV, also known as a ‘balloon payment’) and keep the car.

Hand the car back. Be aware that if you do opt to hand the car back, while you generally don’t have to pay the dealer anything, you might end up having to pay a penalty if you have not complied with all the terms and conditions. You also will no longer have the car.

Put the car down as the deposit on another car and enter into another PCP agreement. It is important to be aware that the deposit you put down for the first car will not be given back to you if you use the car as a deposit for a new PCP agreement. The equity you have built up in your monthly repayments and the difference of the GMFV is what you put towards the new car. All you have to put towards the new deposit is whatever equity you built up from the first PCP. This equity may be less than the deposit required for the new PCP, so be aware that you might have to top the deposit up. This could amount to a couple of thousand euro.

Example of a typical 0% APR PCP repayment schedule 

Comparing a PCP with a personal loan

The main difference between a PCP and a personal loan is that with a personal loan you borrow the money, pay for your car, and own it immediately. With a PCP agreement, you don’t own the car, you are essentially hiring it for an agreed period of time, typically 3-5 years. You only own it when you make the final repayment. This is important because if you were to run into financial difficulty during your PCP agreement, you cannot sell the car to pay off your debt.

How flexible is a PCP?

These agreements are among the least flexible forms of finance. Because the repayments are fixed for the term of the agreement, you usually cannot increase your repayments each month if you wish to do so. If you want to extend the term, you may be charged a rescheduling fee.

What to watch out for

Before you sign up to a PCP make sure you know who is providing you with the finance, that you fully understand the terms and conditions attached and you know what other things you need to look out for such as:

Mileage: At the outset you agree the number of kilometres you are going to clock up over the period of the agreement. If you keep to this, the car will have a GMFV at the end of the agreement. If you exceed the agreed annual mileage you may find that you owe more on the final payment than you think – even if you were to hand the car back it would cost you money. This is often charged at a set fee per kilometre over the agreed estimate.

Half rule: The ‘half rule’ allows you to end a PCP agreement at any time and return your car, but you have to pay half the purchase price. If you have not yet paid half the purchase price you can still return the car but you will owe the difference between the repayments you have made and half the purchase price. If you find yourself in financial difficulty, returning the car using the half rule may be a good option for you because the finance company may decide to repossess the car if repayments are not met.

Small print: At the beginning of the contract you will agree to a number of different terms and conditions. For instance, the cap on the number of miles/kilometres you are allowed to clock up over the period of the agreement. They may also request that you commit to certain car servicing requirements. Always read the small print before you sign up.

Finance options: When comparing finance options, take the time to compare the total amount payable on a personal loan (cost of credit) with the PCP cost (the deposit, plus monthly repayments and final payment). Use our personal loan cost comparison to help you. Make sure you also compare the terms and conditions of each option.

Fees and charges: Always enquire about any additional fees and charges. You are entitled to a list of all additional charges and fees, so ask the garage for this before you sign up to any agreement. For instance, ask if there is any documentation fee for setting up the agreement, missed repayments fees or repossession charges.

How is interest charged?

If interest is charged, the rate on PCPs will vary depending on the finance company and the car you are financing. Interest is calculated at a fixed rate on the total amount you borrow for each year of the agreement. If you pay off the agreement earlier than planned, this type of agreement will often work out more expensive than if you had taken out a variable rate personal loan. Also, the deposit you pay at the beginning of the contract will have an impact on the amount of interest you pay.

Can your car be repossessed?

With a PCP, your car can be repossessed if the terms of the agreement are broken, for example, by missing repayments. If you have paid less than one-third of the purchase price, the car finance company can take back your car without taking legal action against you. If you have paid more than one-third of the purchase price, a lender cannot repossess the car without taking legal action. In addition the car cannot be repossessed from your home, regardless of how much money you’ve paid back.

If your car is repossessed, the finance company will generally sell the car and the money goes towards the outstanding debt, but you will still have to make repayments until the entire debt is paid off.

PCP and your credit record

As with other types of credit, when you take out a hire purchase agreement, your lender will send details of the repayments you make to a credit-reference agency, such as the Irish Credit Bureau (ICB). Find out more about what information is shown in your credit history.

Security tips

It is worthwhile checking the registration documents of a second hand car to make sure that it is not already owned by a finance company, in which case the person trying to sell you the car does not actually own it and therefore does not have the right to sell it to you.

Tipperary Credit Union have put together a student loan package to deal with the financial difficulties of going to college. Our smart start student loans are one of the most competitive student loans on the market. Contact us for more details.

Note: a Guarantor is required for this loan product, an ICB check will have to be carried out on the guarantor to process the loan application. Student members can also borrow for a PC or Laptop at  this great low rate. Terms up to 5 years.

Back to School Loans

At Tipperary Credit Union  we know how expensive it can be sending a child to Primary or Secondary School. We have put together a Back to School loan package to deal with the financial difficulties of this. Our Start Smart  Back to School loans are one of the most competitive student loans on the market. Contact us for more details.

Note:  Terms and  Conditions Apply.

Available for loans that are fully covered by shares.

For new loan amounts above €40,000. Security is required and you can incorporate existing borrowing if security is adequate to cover 125% of the loan.

Available for site purchases, extensions, council mortgages/buyouts etc. Contact the credit union today for more information.

Contact the office for more details on this rate.

Telephone us on (062) 80400.