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Finance levels up as PCPs impact market


Almost one in 10 vehicles (9.5 per cent) offered for sale across all years have finance outstanding, vehicle data expert Cartell.ie has reported.

Cartell.ie also reports that more vehicles for certain key registration years are being offered for sale with finance outstanding than last year.

From a sample of over 5,906 vehicles offered for sale and checked via the Cartell.ie website in 2016, the figures show that 29 per cent registered in the last three years are offered for sale with finance outstanding.

In the case of one-year-old vehicles (2015) the levels of vehicles offered for sale with finance outstanding has risen from 23 per cent for the equivalent period last year to 27 per cent in 2016 – representing an increase of 17 per cent.

This means there is now more than a one-in-four chance of a one-year-old vehicle being offered for sale with finance outstanding.

Similarly in the case of two-year-old vehicles (2014) there is a 28 per cent chance of a vehicle being offered for sale with finance outstanding.

Statistics published by Cartell.ie indicate that buyers have almost a one-in-three chance (30 per cent) of purchasing a three-year-old vehicle (2013) with finance outstanding. Even older vehicles are regularly offered for sale with finance outstanding – 7.9 per cent of all 2010 registered vehicles offered for sale had outstanding finance against them. 

John Byrne, Cartell.ie, says: “Finance levels for cars offered for sale which are less than 3 years old are around 30 per cent. This means a buyer in the market for a relatively new car needs to be particularly careful. The rising levels of finance for newer cars may be attributable to the prominence of PCPs – but remember the impact for a potential buyer is the same: the finance house owns the vehicle until the last payment is made. You can lose the car if you purchase it with finance outstanding. Overall finance levels are rising again. Cartell warned the market in 2015 that finance levels had bottomed out – and would rise.”