Most dealers offer hire purchase agreements as their car finance loans. Hire purchase differs from a loan in that you won’t own your car until you make the final repayment. With a loan, you own your car from day one.
Dealers who offer hire purchase tend to do so as agents for finance companies in return for a commission. These finance companies provide the loan, not the dealer. The finance company then rents the car to you in return for a regular repayment over a number of years. Once the last repayment is made, the ownership of the car passes from the finance company to you.
Hire purchase agreements are one of the least flexible forms of finance. The interest rate is fixed for the term of the agreement, so there is no option to increase repayments, and increasing the term of the agreement may result in a rescheduling fee. If you want to pay the full hire purchase price early, you can do so. You won’t have to pay the full interest amount owed, but you will end up paying more than you would in a less restrictive loan. Missed repayments can also result in interest surcharges and penalty fees.

Typical fees and costs on a hire purchase agreement

The fees and charges on hire purchase agreements can vary, but may include:
• Documentation fees – a fee for setting up the hire purchase agreement
• Interest surcharge for missed repayments – an additional interest charge on any missed repayments
• Penalty fees – for missed or late payments, in addition to interest surcharge
• Completion fee – to facilitate transfer of ownership of the car to you
• Repossession charge – a fee for repossessing the car
• Rescheduling charge – a fee for changing the loan terms
• Balloon payment – a large repayment at the end of some hire purchase agreements

Skibbereen Credit Union Car Finance

• You own your car from day one
• You can sell your car at any time.
• You can borrow for the full amount, or borrow more to cover insurance, tax, etc.
• There are no hidden fees, admin charges, transaction charges, set up costs or balloon payments.
• Repayments are calculated on your reducing balance, so you pay less interest with each repayment
• If you pay off your loan early, there are no fees or charges
• Increased repayments will result in less interest being charged
• If you need to reschedule your loan, we will work with you to adjust your repayments
• Your loan is insured in the event of your death at no direct cost to you.

The Irish League of Credit Unions (ILCU) recently published their 2015 ‘Third Level Education Survey'. They asked parents and students about how they plan to meet the costs of third level education.

The results show that 59% of parents expect to get into debt to cover college costs, with €5,030 the average debt per child per college year. The research also shows that parents contribute an average of €453 per child per month, up on last year. With money worries being a big concern for parents and students, we at Skibbereen CU have come up with several tips to help new students to manage their financial needs in this new stage of their lives.

Tip 1: Work out all the new expenses you will have. For many of you, this is your first time living away from home, your first time buying your own groceries, preparing your own meals, paying bills. Without a clear plan in place, you may overspend. It is a good idea to set up a budget to help track your expenses. See our tables below for the average cost of living for college students.

Tip 2: Track your spending and income for a few weeks at the start of the college year. This will give you an idea of your average spending over the year. It will also show you instances where you were overspending and give you opportunities to cut back for the next month.

Tip 3: If you need to borrow, calculate your total borrowing requirement, but don’t draw down the entire loan immediately. This will allow you to maximise your efficiency and avoid overspending. If you are in receipt of a student grant, borrowing each term will also ensure that you need to borrow less.

Tip 4: Always shop around for the best deal. Whether this means doing your shopping in Aldi or Lidl, or buying your textbooks online, it always pays off to look for the best deal. This applies to loans and borrowing too. Always check out the different loans available, the APR and any other charges.

Tip 5: Sometimes, things can be overwhelming and it helps to talk to someone. All colleges have a support structure in place for their students. If you run into any financial difficulties, you can always talk to us at Skibbereen Credit Union.

No Grant Costs

With Full Non-adjacent Grant Costs

Saving for College

The Money Advice and Budgeting Service (MABS) have said they are very concerned at the reliance of Irish people on legal and illegal moneylenders. Some families use them to keep up with their weekly expenses, while others turn to moneylenders at more expensive times of the year, especially in September when children return to school and December as Christmas approaches.

Some of these moneylenders can charge up to 270% annual interest on the money they lend, while illegal moneylenders can charge up to 400%.  Families who borrow from moneylenders face huge repayments, which they sometimes can’t afford without borrowing more money.

MABS has called for struggling families to come to them before they borrow from a moneylender. They can check to see if families are receiving all the entitlements they are eligible for and inform them of other services that they may not be aware of.

Skibbereen Credit Union offers a free and confidential money managing service to our members. We can help you create a plan to tackle debt problems and take the first step towards financial health. For more information, you can visit our website here, or call us on 028 21883. 

Looking for something to do this month? Be sure to check out these local festivals and events coming up in August!

The launch of the 142 registration plate lead to the biggest day in car sales in six years, according to SIMI (Society of the Irish Motor Industry). 4,264 were registered on the first day of 142 registration sales, compared to 1,924 cars on the first day of 132 registration sales.

New car sales were up by 23% in the first half of the year, which is far more than was sold in all of 2013. Cork has seen a 27.5% increase in new car sales in the first six months of 2014 as compared worth the same time in 2013. It is expected that this trend will continue for the second half of the year.

There are many options for financing your new car. If you are considering buying a new car this year, why not borrow from Skibbereen Credit Union. We currently offer a New Car Loan with a rate of 5.99%, which is one of the cheapest rates in the marketplace to own your car. Come into one of our offices in Skibbereen, Schull or Drimoleague to talk to a member of staff, or call us on 028-21883. And don't forget, you can use our Loan Calculator to see your potential repayments or even apply for your loan online.

Looking for something to do this month? Be sure to check out these local festivals and events coming up in the next two weeks!

Have an event you want us to mention? Email treasurer@skibbereencu.ie or call 028-21833.

The CHEAPEST RATE in the Market Place

• Borrow up to €5000
• Pay as little as €2 a week in interest
• FREE Life Insurance included
• We are providing you with up to €5000 in cash to spend any way you see fit helping you to avoid raking up big credit card debts!

You can apply online or by calling us on 028 21883.

This is a limited time offer and is only available until August 31, 2014.

Finance also available for larger loans and longer terms. For more information, visit our website.

Get up to 10% Credit Union discount plus great cover

We've teamed up with AXA  to bring all our members a 10% discount on their insurance.

Car Insurance

• Up to 10% Credit Union discount (with a €350 own-car damage excess)
• Up to 75% no claims discount (if 5 or more years claims free driving, subject to a €317 minimum premium)
• FREE motor rescue when you buy AXA car insurance

Home Insurance

• Protect your home, contents and personal possessions (minimum premium €150)
• 10% Credit Union discount (new business) and €30 off renewals
•  Up to 15% discount (new business) and €30 off renewals

Travel Insurance

• 7.5% discount if you have standalone private health cover
• 10% extra Credit Union discount
• Cover arranged in minutes

Get a quote today

1890 336 339

Expires April, 2016. These discounts may be amended or withdrawn by AXA at any time. Terms and Conditions apply. Minimum premiums do not include 5% Government Levy. Credit Union membership discount cannot be used with other offers. For your own security and to help us improve our service, we may record or monitor phone calls. AXA Insurance Limited is regulated by the Central Bank of Ireland. AXA Travel Insurance is authorised by the Central Bank of Ireland as an Insurance Intermediary and is underwritten by Inter Partner Assistance S.A. Brussels. Your Credit Union is regulated by the Central Bank of Ireland and is acting solely as an introducer to AXA Insurance Limited.

We are pleased to announce that our new Budgeting App will be coming soon! This new app will enable you to plan out and budget your finances to help you save money.

Keep an eye on our blog and facebook page or more information.

See below for a sneak preview!