The Society of the Irish Motor Industry issued its official 161 car sales figures for Kerry this week with an increase in Kerry sales of over 25%.
If the hype in PCP Dealer Finance is anything to go by Tralee Credit Union is one credit union bucking the PCP Finance trend.
So far this year, Tralee Credit Union has seen a 64% increase in uptake to its motor loans.
Since January 1st 2016 they have lent out €7.4 million in motor loans to its members in Tralee, Castleisland and Killorglin – that’s a €3 million increase on this time last year.
Put in Context
Tralee Credit Union CEO, Fintan Ryan put the new movement in context:
“The increase in car sales is due mainly to renewed confidence in people’s spending again in an improved economy and this is reflective in all our lending in general.
“When it comes to motor finance there has been a lot of hype and confusion around PCP Finance being sold in the dealers.
“While there is no doubt people are taking up PCP finance deals, our motor loan figures show the value people still see in taking out a credit union loan to finance their new or second hand vehicle.
“The main difference between PCP finance and a credit union loan is ownership, with a credit union loan you own the vehicle from Day One.
“With PCP/Hire Purchase agreements you don’t own the vehicle until the final repayment. A credit union loan offers you flexibility. You can repay your loan without any penalty. There are no balloon payments at the end, no mileage restrictions and we also insure your loan with free Loan Protection Insurance.
“What attracts people to PCP finance is the low repayment rate. To combat this, Tralee Credit Union reduced its motor loan rate earlier in the year and has just reduced it again for a limited period during July, August and September.
“If you need access to finance – you get what you pay for. Check out the different deals around and know what you are getting and be mindful of that and make an informed decision,: Mr. Ryan advised.
You can apply for a loan online at www.traleecu.ie, by phone on: 066 712 2373 (Dial 1) or in person at one of TCU offices in Tralee, Castleisland and Killorglin.