Friday 20 October 2017

Used-car PCPs: how the game has gone up a gear

Buying a car - PCP deals could further transform the market.
Buying a car - PCP deals could further transform the market.
Eddie Cunningham

Eddie Cunningham

We have had quite a reaction to our story last week on the continuing spread of Personal Contract Plans (PCPs) to used cars aged three years and younger.

Apart from several potential buyers asking if, and how, it would work for them, we had a gentle reminder from the Volkswagen Group that they have had PCP deals for three-year-old and younger cars for some time.

We alluded to this - and others - last week, pointing out that the difference with the latest offering from First Auto Finance Ireland is that they are across all brands and franchised dealers and virtually every independent used-car dealer.

First Auto Finance is based in Dublin and is the business partner of Close Brothers Motor Finance in Ireland.

It is worth noting that their APR is 8.9pc, as we reported last week. Volkswagen point out that its deals (also for Skoda and Audi) have been running since 2014, with a PCP for SEAT introduced last year.

The interest rates for used Audis are 5.9pc, for SEAT 6.9pc (for cars from 2014 to 2016) but 3.9pc for 161-reg demonstration models. Skoda rates are 6.9pc (2016-2013) but 3.9pc for 2015 regs while the rate on Volkswagens is 6.pc (2013 - 2016).

I think it is fair to say we're going to hear a lot more about used-car PCPs.

Indo Motoring

Also in Life