Are you looking for a new car?

Having a reliable car can make a huge difference to your everyday life. Amongst other things it’s there to help you drop the kids off at school, see friends and family or get you safely to work. Our Member Loan could help you purchase your perfect car.

Key benefits of the Member Loan

• You can apply to borrow up to £35,000, over a maximum term of 90 months.
• We don’t use representative APR, meaning the rate you see is the rate you get, regardless of your credit score. 
• All loans are personally assessed and decisions are based on affordability, not just your credit score alone.
• There are no hidden costs and no early repayment fees.

Understanding Your Options
Before making the decision on how to fund your new car, we want you to know your options, so we’ve done some of the hard work for you. Read on to find out more.

Purchasing a car on finance

Purchasing your car on finance can also be known as a Personal Contract Purchase (PCP). With this option, you are often required to pay a deposit, and then you will pay an agreed monthly amount for a specified time period. The APR on car finance is often representative, which means that your credit score could impact the amount of interest you are charged. You will usually find out the personal rate for you after you’ve applied. 

Once this comes to an end, you can choose to either return the car, or pay a ‘balloon payment’ – a final lump sum which enables you to keep the car. You can even consider borrowing the money for the balloon payment if you wish to buy the vehicle. However, if you decide to return the car, there could be outstanding fees to pay if there is any damage to the car or if you have exceeded the agreed mileage limit. You can also opt to change your car by returning your existing car and buying a new one, this often involves taking more finance.

Leasing a car

Leasing can also be known as a Personal Contract Hire (PCH). Leasing a car is essentially renting a car long term. You will pay an initial deposit and then a monthly amount thereafter. When your lease contract ends, you will return the car to the dealer. When you return the car, there could be outstanding fees to pay if there is any damage to the car or if you have exceeded the agreed mileage limit.

Buying a car with a loan

Buying a car using a personal loan is an option for those who wish to own their car. As the car belongs to you, there will be no mileage restrictions. You may have more flexibility in terms of monthly payments as you can choose your provider and agree a term which suits you. This is not always the case with a PCP as often they have maximum terms. With No1 CopperPot, our maximum loan term is 90 months.

When deciding on your lender, look out for the term ‘representative APR’ – this means that you may not get charged the rate advertised, as it could be dependant on your credit history. We don’t charge representative APR. All our members get the advertised rate if approved, no matter your credit score.

We hope you found this article useful. We want you to be aware of all your options before you enter an agreement, to ensure it’s the best option for you! 

All our loans are subject to affordability and our lending criteria.