44% of Irish car buyers sceptical of PCP finance
A new report* issued by Carzone.ie has highlighted scepticism around PCP loans and the growing interest for Irish car buyers in purchasing electric vehicles.
In the report, it stated that: Almost half of Irish car buyers sceptical of PCP Finance
44% of motorists say they are sceptical about the lump sum required at the end of a PCP agreement and 40% don’t like the idea of not owning the car outright when buying via PCP and hire purchase. This is no surprise given that PCP is, in effect, an inflexible leasing scheme, in which you must pay a large sum at the end of the agreement in order to own the car.
One third consider borrowing from the Credit union
A third of respondents said they would consider borrowing from the Credit Union. Other forms of finance considered by respondents in the survey are bank loans, hire purchase and PCP agreements.
90% research car finance online
A whopping 90% said they research different forms of car finance online.
Speaking about the report, Helen Courtney Power, Chapter 23 – Kerry and West Limerick Credit Union stated: “it’s great to see heightened consumer awareness around PCP finance and the potential pitfalls around balloon payments and this type of finance.
“In the credit union, car loans is the biggest selling product we offer to our members, and we strive to be the most competitive in the market place. We are delighted to see that consumers are actively looking for the best deals for car finance online and that we are in the consideration set when people want car finance.
“With a credit union loan you own the vehicle day 1. There are no large deposits, no balloon payments at the end, no mileage or wear and tear restrictions. Credit Unions also offer free life cover on your loan and flexibility in that you can clear your loan early without any penalty.”
Buyers keen to go green – but 36% unaware of government goal
The survey also found that buyers are keen to go green in 2020, with 70% of motorists wanting to buy an electric or hybrid car in the future. But, 36% of people were unaware of the government’s goal to reach 100% of all new cars and vans being electric by 2030, and only 16% think that it is achievable.
Almost 60% to consider buying car from UK
Almost 60% said they would consider buying a car from the UK, because of perceived better value (82%).
63% say that buying a car in the UK is too much hassle. Other doubts include that it would be high risk (35%) and worries about VRT (35%).
Helen added: “There has been a lot of media coverage in hybrid and fully electric vehicles. In the credit union, we are happy to look after all types of transport for our members, whether it’s a truck, bus, tractor, motorbike, car or caravan. We cover it all.
“As a local community based business, we would encourage our members to shop local at all times, by supporting their local dealers, garages and tradespeople.
* Carzone Motoring Report January 2020