Getting a credit union loan

[yram]

Hi guys,
I will be looking to borrow 5k over 5 years with the credit union for a new car. Although I asked them, I am not clear on the early repayment situation.
I deliberately chose 5 years as this is the lowest I would would pay per month. In the event that I save some money up (lets say I save up e500 6 months into loan and want to pay this off) can I pay this off without penalty? Credit union were not very clear on this.
Also, from looking around, the credit union were the best offer I could see...anyone any other ideas as to who is offering good car loans?
Thanks

 

[ccraig]

my experience has been yes with no penalty but just call and confirm. Youll probably need to have had an account for at least 6 mths

 

[yram]

Thanks for the response.
I have account with them for years, but never actually used it for anything. Plan is to use 8k (in savings in bank at the mo-will transfer to credit union) and borrow 5k against it - works out bout e20 per week. Am good at saving and so if I do save some money Id like to put it towards the loan and clear it as soon as possible.

 

[ontour]

there is no penalty in the credit union for early repayment. If you are good at saving why not just use 5k of the 8k to buy the car and continue to save? This would result in more money in your pocket at the end of the day. Ask the credit union about the dividend on shares / savings in the last few years. All credit unions are different and it is based retrospectively on the year's performance so they can not guarantee a rate but their recent rates may give you a good indication. It could vary from 0% -3.5+%

 

[yram]

Well the car I am buying is 12k. I have 7k saved. I am doing the scrappage scheme so have to buy a new car. The best option I can see is to take the loan out for 5k over 5 years and if Ive any spare cash put it towards it. Incidentally if the cost of the loan is 6.5%, how does one work out the exact repayment per month over 60 months?