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Car loans to surge in 2019

According to research carried out for the Irish League of Credit Unions by i-Reach, more than a third of 1,000 adults surveyed plan to take out a car loan in 2019.

74 per cent said they intend to get their loan from their credit union.

Consumers plan to borrow an average of €8,558, the research suggests.

Car imports from Northern Ireland and England have risen due to the weakness of sterling against the euro. Many of these purchases are being funded by credit unions.

This is a boost for the credit unions which are struggling to get people to take out loans from them.

Commenting on the results, ILCU Head of Marketing and Communications, Paul Bailey said: “It’s reassuring to see that despite the economic recovery, consumers are taking a prudent approach to borrowing in 2019.

“What is of concern is that there appears to be a lack of understanding among borrowers of how much the loan is actually costing them. Our survey shows that borrowers tend to focus on monthly repayments, rather than on the cost of credit, which is the total amount they will end up paying back to the lender.”