Wednesday, July 30 10:53:36
Bank of Ireland this morning said it will now offer Personal Contract Purchase (PCP) loans to people buying second-hand cars as it seeks to corner the market in motor finance and take advantage in the upswing in the car market.
This is an extension of their current PCP offering on new vehicles and will enhance and support the growth of the PCP product through its franchise dealers, Bank of Ireland Finance said.
The Personal Contract Purchase (PCP) allows consumers to drive a new car without the associated costs of ownership. Traditionally only available for the purchase of new cars, the extension of the PCP to second hand cars significantly expands the reach of the product across the market. Qualifying second hand cars will include vehicles up to 18 months old.
Bank of Ireland has established itself as the market leader in the motor finance industry, partnering with 14 leading motor franchises in the Irish market.
Pat Creed, Managing Director, Bank of Ireland Finance, said: "Conditions in the motor industry have been very challenging since 2007 when new car sales decreased from 152,830 to 74,300 in 2013. Consumers postponed the purchase of a new car which in turn led to a much older car pool in Ireland. It also means that the cost of purchasing a new car is now much greater with less equity in the older trade in."
He said that a real recovery in the market is now underway.
"With more than twice as many 142 cars registered on the first day of the new registration plate compared with the same day last year, it is evident that a significant number of consumers are returning to the market. The growth in the popularity of PCP and low APR rates has been such that over 71pc of all new cars purchased by consumers are now selecting these forms of payments. We are seeing very strong approval rates for PCP and low APR rates, with 90pc of applications being approved for finance," he said.
"2014 is proving to be the best year for new car sales since 2008 and looks set to achieve sales of 90,000 vehicles by year end."
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