The initiative, launched in January 2011, will see many credit unions around the country offer special car loan rates to their members.
Commenting on the launch of the car loan campaign Kieron Brennan, CEO, Irish League of Credit Unions said: “Irish people are still buying cars but are shopping around for better value in the car financing deal. Some of the special car loan promotions being offered in 2011 from the credit union are as low as 6.5% APR, this is particularly noteworthy.
Based on 2010 figures, the average car loan across credit unions was *7.1% APR, so it is worth calling in to your local credit union to see what is on offer in 2011. Many of the loan rates are very favourable compared to other financial institutions.”
Some of the things that make a loan from your credit union different to a loan from the bank include:
• There are no hidden fees or transaction charges;
• Credit union interest rates are fair and reasonable and capped by law;
• Repayments are calculated on your reducing balance, so you pay less interest with each repayment;
• Once you are eligible for a credit union loan, repayment terms can be designed around your needs;
• Your credit union loan is insured – subject to terms and conditions – at no direct cost to you. Other lenders charge for this;
• You can pay off your loan early, make additional lump sum repayments or increase your regular repayments, without a penalty.