Car Finance Options

Car finance gives you a way to buy a car when you don’t have the cash to pay upfront. It is the most common way cars are purchased in Ireland.

Car finance can also be used to purchase motorbikes, vans, caravans and more. There are different types of finance available so we've put together this simple guide to help.


Types of Car Finance

> Hire Purchase (HP)
> Personal Contract Purchase (PCP)


Understanding the Numbers

  • The total amount you pay back includes the cost of interest and any fees as well as the cost of the car. The cost of interest and fees is given in what's called the APR (Annual Percentage Rate).
  • The longer the repayment period, the more you pay in total but the less you pay each month.
  • The shorter the repayment period, the less you pay in total but the more you pay each month.
  • You can cut both monthly repayment amounts and the total cost of interest by paying a bigger deposit.
  • The better your credit rating, the lower the interest rates you’ll be offered.


Affording the Payments

When you buy a car on finance, you commit to making regular monthly repayments.

This means it’s important to work out what you can afford before you go ahead. People sometimes think you can just hand the car back if you can’t afford it. It’s not that simple.

If you miss payments, you’ll hurt your credit score. This can make it harder for you to get finance of any sort in future. It’s down to you to insure and maintain the car. Make sure you allow for these costs, too.

If you’re concerned about affordability, it’s a good idea to take independent financial advice.