Car finance seems like a viable option, right? Ask yourself this however, do you think they really have your best interests at heart?
Fortunately for you, there’s a local, affordable, ethical alternative to car finance that puts you in the driver’s seat. Although we aren’t financial advisors, we are going to help you cut through the noise of car finance and show you how a loan from us could be the perfect solution to getting your dream car.
Our loans don't offer representative APR
You have probably come across the term APR and may have even used it to compare your options. APR stands for ‘annual percentage rate’ and is essentially the amount of interest added to the amount that you borrowed.
So, what exactly is representative APR?
Representative APR is the lowest APR that a lender offers, however, they only have to offer their lowest APR rate to 51% of people who are accepted. For a quick example, if you see 16% representative APR advertised, it means that 51% of people who are accepted get the advertised rate.
What about the other 49% who are accepted? Those people will pay more interest than the advertised rate.
Your local credit union (that’s us!) will only ever advertise the exact APR – what you see is exactly what you get, and we aren’t interested in confusing people. Feel free to check out our loan calculator so you can see exactly how much you’ll pay if you’re accepted.
You aren’t restricted to a car dealership
Rather than being tied down to one car dealership through your car finance, getting a loan with us gives you the opportunity to shop around and find a deal that’s right for you. Once you have found your ideal car, you can use our loan to cover the exact costs.
Own the car from day one
Wouldn’t you prefer to own your car as soon as you drove it home for the first time? By getting a loan with us to cover your car costs, you can do exactly that. Use your loan to buy your car outright and it’s yours, no strings attached.
Financing a car means you’ll be paying for your car until the total amount is paid off, and only then do you own the car. There’s also risks associated with this, as missed payments can lead to the repossession of your car, leaving you high and dry.
On top of this, you won’t be able to sell your car if you fancy a change, as the car finance lender is the legal owner. When you use our loan to pay for your car, you have all the power. If you’re looking for something different, you have the right to do just that.
No balloon payments
Some car finance options require a balloon payment at the end of the finance agreement, which is a lump sum that is often larger than your monthly repayments. You may need to keep this in mind and plan ahead so you’re able to pay your monthly repayment plus the balloon payment at the end of your finance agreement.
We don’t have balloon payments here. Borrowing with us means paying the agreed amount each month, that’s it. If you want to pay more to bring your balance down faster, you can do that and at no extra cost.
Pay extra, pay less interest
We just mentioned there that you can make extra repayments with no fees attached. Even better than that, if you pay extra, you’ll actually pay less interest!
Our loans have no hidden fees or charges – zero. We pride ourselves on being transparent, friendly, and fair.
All interest on our loans is charged on the reducing balance. As your loan balance reduces, so does your interest. You pay interest on your balance today, not on your original balance.
What now?
Are you now thinking that maybe a loan may just be your best alternative to car finance? Visit our car loan webpage, apply for a loan through our online application form, or ask us any questions you have on our mobile messaging app.
