Available finance is a key decider for many people when looking at a new car, with the PCP (personal contract plan) becoming more and more popular with the Irish motorist.
Renault’s own bank, Renault Finance, in the country just over two years, has lent over €100 million in retail financing in Ireland to its 6,000 customers.
In 2013 Renault Finance saw approximately 1 in 4 customers take Renault ReFlex, Renault’s PCP product, which reduces a monthly payment versus a personal loan or traditional hire purchase. Customers can save up to 30% less with the same finance amount over the same period with a PCP.
Early indicators in 2014 show that 40% of Renault and Dacia customers will take a Renault ReFlex product (PCP). With ReFlex, customers are guaranteed the value of their car in 2-3 years’ time and Renault or Dacia will guarantee a minimum amount at the end of their finance term. They also have the possibility of driving a new car every 2-3 years and if the customer doesn’t wish to keep the car after the term, they don’t have to.
Another reason why PCPs are increasing in popularity is that the deposit required is low, usually 10% between deposit and trade in.
With the market up 45 %, Renault Finance has seen an increase of 100% in finance applications for the same period last year. A new maximum two hour decision time has also been introduced on all finance applications.
Mrs. Gaëlle Humbert, Managing Director Renault Finance cpmmented: “More and more customers are researching their options online and they have a better idea of what they want when they visit one of our dealerships. It is crucial that we provide these customers with a quick decision so they can make an informed decision on the best way to pay for their Renault or Dacia, hence our new two hours decision time. We have seen 1 in 2 registrations take a finance agreement with us and this is down to flexible ways to pay, lower interest rates, professional service and our 80% acceptance rate. We want to ensure that all customers’ needs are met in their dealerships making it easier for Renault and Dacia drivers to choose and pay for their new car.”
Tips for Motor Finance
· Compare the monthly payments of a personal loan, hire purchase and Personal Contract Plan option over the same term and with the same finance amount
· Compare interest rates, check the interest rate you are paying and always review the cost to borrow the money over the term
· Hire Purchase is a form of secured lending. Secured loans will typically have a lower interest rate than an unsecured loan.
· Hire Purchase agreements always have a fixed interest rate: This means that your rate will not fluctuate so your monthly payments will remain the same throughout the term of the agreement
· Your Trade-In can be used as a down payment on your finance agreement.
