Wednesday 16 August 2017

First Auto Finance launch product designed for international executives working in Ireland

Stock photo
Stock photo

Ellie Donnelly

Car finance business First Auto Finance has launched a new product designed for international executives working in Ireland on short-term contracts.

The product is designed around a long term rental agreement for new cars which can cover everything except fuel.

"There is a growing pool of senior executives who will be located in Ireland for 2 – 3 years and who want a no-fuss all-inclusive car finance option," managing director Frank Donnellan said.

"Given that they will be here for a relatively short period, we’ve designed a personal contract hire (PCH) product to give them all the benefits of car ownership without any of the downsides or financial risk," he continued.

Read more: A PCP is not the only show on the road for new car finance

The company, which is a subsidiary of Finance Ireland, is also launching a 4-year version of its personal contract plan (PCP) products.

PCPs are a form of hire purchase agreement which enable consumers to acquire a new car for a deposit and monthly repayments, before handing back the vehicle, trading it in for another or paying off the remainder of the loan and keeping it.

PCP products have come in for criticism recently aim fears that thousands of motorists who take out these deals may not be aware of the downsides of the contracts.

Addressing the negative commentary, Mr Donnellan said that he belived that PCPs are a "great" way acquire a new car every three years.

"We are now seeing many customers taking out their second PCP. While relatively new here, PCPs have been operating successfully in the UK for over 30 years and our experience with them has been excellent," Mr Donnellan said.

Finance Ireland is the largest non bank lender in the country. The company has over 40,000 customers and its loan book is now approaching €500m.

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