When financing a car in Ireland, there are several financing options you can consider. These include:
- Personal loan: You can take out a personal loan from a bank or other financial institution to pay for a car. Personal loan interest rates and terms vary, so it’s important to shop around and compare offers to find the best deal. It’s important to remember that personal loans can have a higher APR than car finance specific products.
- Hire purchase: This type of financing allows you to take possession of a car and pay for it in instalments. With hire purchase, you make a deposit, followed by a series of regular payments, and then own the car once the final payment is made. Should you default on your HP agreement, your car finance lender has the right to take back your vehicle.
- Leasing: Leasing is another option to consider. With leasing, you make an initial payment, followed by a series of regular payments, but you do not own the car. Instead, you are renting it for a specified period of time, and then you must return it. The benefit of leasing is that the monthly cost may be lower.
- Car loan or Personal Contract Purchase (PCP): This is a popular way of financing a car in Ireland, like Hire Purchase, PCP allows you to pay for the car in instalments, but it also includes the option to return the car at the end of the period or purchase it outright, with a final balloon payment.
It’s important to consider the long-term cost of financing a car, and to budget accordingly. Additionally, if you’re thinking about financing a car, it’s a good idea to check your credit score and try to improve it if necessary before you apply for a loan or other financing. The better your credit score, the lower your APR will be, so you’ll pay less interest on your loan.
You should also consider additional costs such as car insurance, road tax, maintenance and fuel costs etc. Many dealerships have fantastic seasonal deals and discounts, so make sure you do your research. In order to fully understand your budget, we recommend that you use online calculators to have a rough estimate of the total costs. Access LM Operation’s finance calculator.
The benefits of financing a car in Ireland are ten-fold:
- Convenience: Financing a car can make it easier to purchase a car, especially if you don’t have the cash to pay for it outright.
- Lower interest rates: Financing a car through a car finance lender or other financial institution may result in lower interest rates compared to other forms of financing, such as personal loans.
- Fixed payments: Financing a car through a loan can provide the buyer with fixed monthly payments, which can help with budgeting and managing finances.
- Tax benefits: In Ireland, car finance can be used as a tax-efficient way to acquire a vehicle for business use.
- Preservation of cash: Financing a car allows you to preserve your savings for other investments or expenses.
- Opportunity to own a better car: Financing a car can help you to afford a car that might be otherwise out of reach, by enabling you to split the cost of the vehicle.
- The ability to upgrade: Financing a car can give the buyer the ability to upgrade to a newer model more frequently, which can be beneficial for those who like to drive the latest car model.
- Access to professional advice: Car dealerships in Ireland often have a team of finance experts who can help buyers find the best financing option for their needs.
- Consumer protection: Financing a car in Ireland is regulated by the Central Bank of Ireland, which provides consumer protection for borrowers.
Borrowing €12,500 over 54 Months with a representative of 17.9% APR, an annual interest rate of 17.9% (fixed) and a deposit of €0.00, the amount payable would be 53 repayments of €327.52 per month, with one final repayment of €526.52 (which includes the option to purchase fee of €199.00), with a total cost of credit of €5,385.08 and a total amount payable of €17,885.08.
LM Operations Ltd are a lender, not a broker. This is for illustrative purposes only and is not a quote or an offer of finance.
Our finance rates vary depend on individual circumstances and is subject to status.