Upgrading your car? This smart move could save you over €1,000 on Car Finance

Buying a car is one of the largest financial commitments most of us will make in our lifetime. We usually take the time to shop around, choose a model that suits our needs, ensure it’s in good condition, and negotiate the best possible price. Yet when it comes to financing the car, this same level of attention is often missing. Car finance can seem complex or confusing, which leads many drivers to opt for the most convenient solution rather than the most cost-effective one.

There are several types of car finance designed to make driving more affordable through manageable monthly repayments. These commonly include Hire Purchase, PCP, and Leasing. Each option has its own advantages and can be an effective way to drive a newer car more regularly. However, it’s important to fully understand the terms of any finance agreement and to consider alternative options before committing.

In particular, comparing dealer finance with credit union car loans can highlight meaningful potential savings. For example, a borrower taking out a €20,000 car loan with Tower Credit Union at a rate of 6.25% could reduce the total cost of financing their car by more than €1,100 compared with an average Hire Purchase rate of 8.5% APR — a significant difference by any measure (full example outlined below).

The Impact of Interest Rates
When financing a car, the interest rate plays a major role in determining the overall cost. Even small differences in rates can add up to hundreds or thousands of euro over the lifetime of a loan. While Hire Purchase or PCP refinancing can be convenient, these options may involve higher interest rates and additional fees that aren’t always obvious when focusing solely on monthly repayments.

Credit union car loans, by contrast, are typically more straightforward and transparent. At Tower Credit Union, we offer a market-leading personal loan rate* of 6.25% (6.43% APR) on loan amounts over €10,000 (Ts&Cs apply – see below). With no fees to worry about, this can represent real value for members — delivering practical savings that can be redirected towards everyday motoring costs such as tax, insurance, or servicing.

Comparison at a Glance

The Credit Union Difference

When it comes to financing your next car, Tower Credit Union offers a simple, flexible, and cost-effective alternative to traditional secured finance. Our members enjoy the reassurance of borrowing from a trusted, member-owned credit union, along with free loan protection insurance for added security and peace of mind when it matters most.

The application process is quick and hassle-free — apply online, by phone, or in one of our five branches. Whether you prefer a fully digital experience or expert, in-person support, we offer the best of both worlds: digital when you want it, human when you need it.

Making a Smarter Finance Choice

If upgrading your car is part of your plan, Tower Credit Union have a straightforward and cost-effective loan option worth considering. For more information visit www.towercu.ie or contact us by phone or email.

New members are welcome, with simple sign-up available online, via the Tower CU App, or in branch.

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Representative Example illustrating potential savings on a €20,000 loan amount

Overall Saving with a Tower CU Loan - €1101.49

Illustrated saving is based on a loan amount of €20,000. Hire Purchase & loan interest rates can vary widely and may be higher or lower than 8.5% APR. We’ve used 8.5% APR as an example only. If the actual rate is different, the savings shown above will increase or decrease accordingly.*Statement market-leading personal loan rate is based on a comparison between lenders AIB, An Post Money, Avant Money, Bank of Ireland & PTSB as at 16.01.26 for amounts between €10,000 and €25,000. Source reference, CCPC. Statement excludes specifically incentivised such as green loans, secured finance agreements & loans from other Credit Unions operating outside of Tower CU common bond area. Rate of 6.25% (6.43% APR) relates to loans over €10,000 only. Loans are subject to approval. Terms & Conditions apply. If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating which may limit your ability to access credit in the future. Tower Credit Union Limited is regulated by the Central Bank of Ireland.