Car Loan vs PCP

5 January, 2022

Today we’ll be looking at one of the most important topics that often trips people up – the differences between a car loan and a PCP
finance plan. Will you own the car straight away, will you have to pay a deposit, and are there any mileage restrictions?

Keep reading to find out.

Will you own the car straight away?

With a loan from First South Credit Union, yes!

But with a PCP finance agreement you won’t own the car until you make the final payment. Essentially you are paying to hire a car
rather than actually purchasing one.

Can you buy the car without a deposit?

With a loan from First South Credit Union, yes!

But with a PCP finance agreement you should expect to pay between 10% and 30% upfront.

Am I free to drive as many miles as I want?

With a loan from First South Credit Union, yes!

But with a PCP finance agreement there is typically a Mileage cap and a penalty if you go over it.

Can I sell the car at any time?

With a loan from First South Credit Union, yes!

But with a PCP finance agreement, you don’t actually own the car, remember? So you need to seek permission from the PCP provider
first.

Own the car of your dreams with a Car Loan from First South Credit Union.

Call us today on 021-4965134 or apply online now.

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