PCP Finance For Second Hand Cars
Bank of Ireland Finance has launched a new Personal Contract Purchase (PCP) product for second hand cars.
Traditionally only available for the purchase of new cars, the banks says 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.
Pat Creed, Managing Director, Bank of Ireland Finance, said: “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 71% 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 90% of applications being approved for finance.
“The growing popularity of PCP will now ensure that there is a strong supply of good three year old second hand cars coming back to the market on an ongoing basis.
“Interestingly, we are seeing a slightly younger customer profile on our PCP deals," Creed added.
A Personal Contract Purchase is a form of vehicle finance for individual consumers who are looking to pay a fixed, relatively low monthly payment for a set contract period of somewhere between 24 and 36 months with the right to drive the vehicle while ownership is retained by the funding company.
It is similar to contract hire or leasing, however, in the case the customer has to option to ultimately acquire the vehicle at the end of the finance term for a previously agreed amount which is set at the outset of the contract.
Bank of Ireland Finance provides motor finance to the following motor distributors: Toyota, Ford, Lexus, Hyundai, Opel, Kia, Peugeot, Mercedes-Benz, Honda, Volvo, Land Rover, Jaguar, Suzuki and Mitsubishi. (September 2014)