Local loans for local people

PCP vs Croí Laighean Motor Loan

TAGS: Loans, Services

15th January 2020

What is PCP?

This is a Personal Contract Plan you hold with a car dealership which involves:

  • 10%-30% deposit required of the car value (Trade Ins of your current car can be accepted)
  • Term of usually 36 months, after which you can choose to:
  • Decide to hand the keys back and walk away – But what about all the money you have paid over the past 3 years?
  • Pay the balloon repayment – How will you finance same, save or seek further lending?
  • Give the car back, sign up to a new make and model, term and repayments

Consider the following:

  1. Ownership
  • PCP is like that of Hire Purchase; therefore, you are only leasing the car per say until all repayments and interest has been paid
  • Fall into difficulty with PCP, the car will be sought back by the garage. No refinance arrangements are available
  • With a Croí Laighean loan the car is yours from day one
  1. Repayments
  • PCP is broken down into 3 stages of repayments, 1. deposit, 2. 36 monthly repayments and 3. balloon payment at the end
  • A Croí Laighean loan is one monthly repayment (or weekly if preferred) for your chosen term of loan – no hidden fees, penalties, large bullet payments
  1. Mileage
  • Average kilometres accompanied by a PCP is 15,000 Km’s. You can choose to request a higher amount but note additional fees occur, and higher penalties at the end of the contract plan if agreed mileage is exceeded
  • Drive to your hearts content with a Croí Laighean Motor Loan with no worries of clocking up mileage
  1. Maintenance
  • Most dealers will require a strict schedule with servicing of the vehicle when financing through the garage
  • Croí Laighean have no interest in seeking a service history! Service your new wheels, when you want, where you want!


The main difference between a PCP and Croí Laighean loan is that when you take a personal loan, you purchase the car and own the car from the outset. You will know exactly what your repayments are scheduled to be and for how long, with no extra costs to be considered.  With PCP, you are leasing the car for the agreed term, typically 3 years and only when all repayments have been made you own the car (don’t forget that balloon payment).

If you’re considering a PCP finance arrangement, check out our PCP Buster New Car Loan – it’s one of the best loan rates in the market at only 5.5% (5.64% APR).

Related articles

8 July 2024
Loan Comparison Guide
9 May 2024
Self Build Mortgage
24 April 2024
Credit Union Electric Car Loan