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Wednesday, May 22, 2024

Best Car Finance in Ireland

Selecting the right loan for car finance in Ireland can present a considerable challenge. With numerous lenders vying for your attention, each boasting to be the optimal choice, making a decision becomes a daunting task.

In response to this common dilemma, we’ve crafted a comprehensive guide to ease your selection process. Here, you’ll discover a curated comparison of car finance offers available in Ireland.

Our aim is to furnish you with the latest insights on reputable car dealerships providing attractive finance packages and competitive interest rates. By leveraging our guide, you can make an informed decision from the outset, ensuring a smooth and advantageous financing experience.

Best Car Financing Companies:

Different types of financing can help you in different ways, so it’s important to choose the one that will give you the greatest advantage. Here is a comprehensive list of the best car financing companies in Ireland for you to choose from:

best car finance ireland

1. KBC Bank

Head Branch Address:Sandwith Street, Dublin 2
Website Address:kbc.ie/loans/car-loans 
Contact No/Email:1800 93 92 44 / https://www.kbc.ie/contact-us 
Opening Hours:09:00 AM To 05:00 PM (Monday To Friday)
Interest Rate:Starting at 6.3% APR (fixed for KBS current account holders)

If you have a KBC current account, this can be the best car finance deal in Ireland for you. Why? Because you can get a fixed interest rate of 6.3% APR on loans over €10,000. That’s slightly better than the best rates from other banks. And the loan is available for up to 5 years, which is also slightly longer than other offers. Additionally, a maximum loan of €50,000 is also available. 

However, the discount offer is available with respect to new Personal Loan applications only and is subject to the bank’s credit policy.

Perfect option for KBC current account holders. For loans of €10,000 or less, interest rates are a bit higher. 
No up-front fees or commissionsOnly new loan applicators receive a discount on the interest rate.
Flexible repayment terms
No early repayment charge for any amount repaid before the end of the loan term.
An online Car Finance Calculator is available
Low-interest rates compared to others

2. AIB (Green Personal Loan):

Company/Bank Name:Allied Irish Banks, p.l.c.
Head Branch Address:10 Molesworth Street, Dublin 2
Website Address:aib.ie/ 
Contact No/Email:0818 724 724 / +353 1771 2424 (Outside Ireland)
Opening Hours:09:00 AM To 05:00 PM (Monday To Friday)
Nearest Branch Locator:aib.ie/branchlocator 
Interest Rate:Variable Interest Rate = 6.25% and 6.40% APR

With the lowest possible interest rate to offer, ‘Green Personal Loan’ by AIB is one of the best car finance in Ireland. 

AIB (Allied Irish Bank) is one of Ireland’s major banks, and they offer a range of personal, business and corporate financial services and products. 

Green Personal Loan has low-interest rates (starting at just 6.40% APR), so the repayments will be easier to handle for you as well as your family or partner if you have one. They also have an affordable car insurance policy that will help you out with your everyday driving needs, and there are lots of other great benefits to AIB.

Low-interest ratesNo Customer Service after 5:00 PM
Flexible repayment termsStandard documentation fees apply
The loan application process is simple, fast, and efficient for existing AIB clients.The loan application process is rather slow for non-AIB clients.
An online Car Finance Calculator is availableNot suitable for cars other than electric (e.g., petrol/gas powered)
Perfect for battery electric or plug-in hybrid electric cars

3. Permanent TSB (Cash Secured Loan):

Company/Bank Name:Permanent TSB Group Holdings plc
Head Branch Address:Permanent TSB, 56-59 St. Stephen’s Green, Dublin 2
Website Address:permanenttsb.ie/borrowing/loans/ 
Contact No/Email:0818 502 424 / +353 1 212 4101
Opening Hours:9:00 AM To 7:00 PM (Monday To Tuesday) 9:00 AM To 5:00 PM (Wednesday To Friday)
Nearest Branch Locator:permanenttsb.ie/contact-us/find-a-branch/ 
Interest Rate:Starting at 6.4% APR with 100% Cash Secured

Permanent TSB offers two types of secured loans: a car loan, and a cash-secured loan. With the cash secured loan, you could borrow up to the value of your current savings account and leave your savings untouched so that you keep your savings for future use or for other purposes. 

This loan is available on Permanent TSB Current Account only. Interest is charged on the amount borrowed and not on the full balance of your savings account. Loan terms are up to 5 years, and the APR is 6.4% on 100% secured cash loans.

Perfect option for Permanent TSB current account holders. Not ideal for non-Permanent TSB current account holders. 
Low-interest rates Deposit accounts are not subject to withdrawals
Flexible repayment terms
Weekends are not customer service hours
The online loan application process is simple. Collateral is established using a deposit account.
An online Car Finance Calculator is available

4. Bank of Ireland (Consumer Hire Purchase):

Website Address:personalbanking.bankofireland.com/ 
Contact No/Email:1800 946 764 or  +353 1 679 8993
Opening Hours:09:00 AM To 05:00 PM (Monday To Friday)
Nearest Branch Locator:bankofireland.com/branch-locator/ 
Interest Rate:Starting at 6.75% APR

If you are looking to finance a car of €7,000 or more, Bank of Ireland’s Consumer Hire Purchase offers you a very competitive rate of 6.75% APR fixed. Also, the maximum length of a loan is five years, meaning that you have the freedom to spread the cost across a longer period and enjoy driving your new car sooner.

Perfect option for Bank of Ireland account holders. Additional Fee Charges
Fixed interest rates Weekends are not customer service hours
Flexible repayment termsThe possibility of repossession of a car
The online loan application process is simple. 

5. First Auto Finance:

Company/Bank Name:First Auto Finance/ Finance Ireland Ltd
Head Branch Address:85 Pembroke Road, Ballsbridge,
Dublin 4, DO4 YN53, Ireland
Website Address:financeireland.ie/products/motor-finance/overview/
Contact No/Email:+353 01 647 0240
Opening Hours:09:00 AM To 05:00 PM (Monday To Friday)
Financial Services For:Cars and other needs.
Interest Rate:N/A

Finance Ireland Ltd: providing smart financial solutions since 2002.

They are a privately owned financial-services group with businesses that specialise in motor finance, asset finance & leasing, commercial mortgages and agri finance. They have two large strategic shareholders – global investment management firm PIMCO and the Ireland Strategic Investment Fund (ISIF) – and are proud to offer Irish businesses and farmers smart financial solutions that help them grow and succeed.

Quick response time
Flexible repayment terms
The online loan application process is simple, fast, and efficient.
An online Car Finance Calculator is available
Can be used to purchase a new or used car.

6. Usedcarfinance.ie:

Company/Bank Name:Used Car Finance
Head Branch Address:3rd Floor, River House, Blackpool, Cork
Website Address:usedcarfinance.ie/
Contact No/Email:+3531890 252 747
Opening Hours:09:00 AM To 05:00 PM (Monday To Friday)
Financial Services For:Cars and other needs.
Interest Rate:N/A

Used Car Finance are Ireland’s fastest growing car finance provider and offer low-cost funding and a great same day service. They can do 100% finance in many cases, so you can get behind the wheel of your dream car sooner than you thought possible! While they are called Used Car Finance, it’s worth mentioning they also offer new car finance!

Quick response time
Flexible repayment terms
The online loan application process is simple, fast, and efficient.
An online Car Finance Calculator is available
Can be used to purchase a new or used car.

7. Vendor

Company/Bank Name:Vendor Finance Ireland Limited
Head Branch Address:Saint Vincent’s Business Centre, Unit 2 Finisklin Rd, Cartron, Sligo, F91 N243
Website Address:vendorfinance.ie/ 
Contact No/Email:+353 71 931 0137 / info@vendorfinance.ie 
Opening Hours:09:00 AM To 05:00 PM (Monday To Friday)
Financial Services For:Cars, Trucks, Coaches, Trailers, Agri Tractors, Construction Plant, and other needs.
Interest Rate:Starting at 9.9% APR 

Vendor Finance is an independent finance broker that works with a panel of lenders to help you find the best financing deal for your dream car. They help consumers and businesses secure the funding they need to purchase a vehicle or other asset. 

Vendor Finance knows how frustrating it can be to wait for approval and funding from the banks, which often take 15 – 20 days to process an application. They can deliver on the day by arranging to fund within hours. They are an independent organisation and as such, are not constrained in how they can serve their customers and messy government paperwork. 

Quick response timeHigher interest rates than other lenders/banks
No up-front fees or commissions
Flexible repayment terms
The online loan application process is simple, fast, and efficient.
An online Car Finance Calculator is available
Can be used to purchase a new or used car.

Types of Car Finance Options:

It is a good idea to look over the different types of car finance options in Ireland before you purchase your next car. This will give you an understanding of the different types of car finance available to you when you go to purchase a vehicle. There are three main types of car finance options in Ireland: car loans, leasing, hire purchase, and personal contract plans (PCP).

Car Loans:

The first one is a car loan in which you take a loan (usually from banks) to buy your car and repay the loan amount plus interest price in flexible instalments over a fixed period (decided between you and the bank). 

For instance, if you want to get a car but don’t have the money to pay for it upfront, you can apply for a car loan. 

Banks usually provide unsecured loans, which means they aren’t secured by collateral. 

You’ll usually have to make regular payments to the bank or finance company over a 1-5 year term, but the interest rate and length of the term differ according to the deal you choose. 

You can also use a credit union to reduce the interest rate. Additionally, dealerships and garages also offer promotional deals that make purchasing a car more affordable. However, be sure to compare rates for yourself before you commit to any particular loan term.

Hire Purchase:

Then there’s Hire Purchase (HP), which is where you rent the car for a set amount of time, typically between three and five years. 

For instance, if you wish to buy a car but don’t have enough money to pay for it in one go, you can hire the car and pay for it gradually over an agreed period. 

Hire Purchase (HP) allows you to pay for a car in instalments after making a deposit (usually 10%) rather than paying the whole amount upfront. At the end of the contract, you own the car and can sell it or keep using it on an open-ended basis.

This is the best car finance option for those with little savings and a need to own a car quickly. 

Leasing/Personal Contract Hire:

If you plan to use a vehicle for just a few years and don’t want to pay the high costs of ownership, PCH might be a good option for you. Payment plans for PCH cars often consist of an upfront payment, typically three months’ worth. Then followed by a set fee (instalment) each month. This fee is usually higher than the equivalent cars leased under a PCP agreement.

Furthermore, each PCH car comes with an optional maintenance package which will include annual car tax, servicing, repairs, etc. Also, you have to return the car at the end of your contract clean, without any modifications and with a minimum number of miles/kilometres driven. If you break any of these conditions, there will be a penalty.

Generally speaking, PCH is more popular with businesses that need fleets of vehicles, but it can also be used by individual customers.

Personal Contract Plan (PCP) :

PCP finance is kind of a mixture of leasing and hire purchase. You pay a deposit and monthly payments, but unlike with an HP contract, the monthly payments are used to reduce the depreciation of the car, not pay off the value. You typically sign up to make regular payments over 3-5 years. And at the end of that time, you can keep your car by paying a final fee known as a ‘balloon payment’.

Also, when you take out a PCP finance contract on your new car, the provider will work out what they expect that car to be worth at the end of the finance period (known as the Guaranteed Future Value). They’ll then divide this amount plus the interest into chunks that you pay back over a decided period. This is what makes PCP monthly instalments lower than PCH. 

The Bottom Line:

It is no secret that most people who want to buy a car do not have enough money to buy it in cash. This leaves many people with no option but to look for a car finance. 

There are four main types of car finance options that are offered by most dealerships in Ireland: hire purchase (HP), personal contract plans (PCP), personal contract hire (PCH), and car loans. 

The best car finance in Ireland include ‘Green Personal Loan’ by AIB with 6.25% APR, KBC with 6.3% APR,  Permanent TSB with 6.4% APR,  Bank of Ireland with 6.75% APR,  and Vendor Finance with 9.9% APR. All these car finances have their own pros and cons. Make sure you weigh the pros and cons of all five before making a decision.

Thomas Lyons
Thomas Lyons
Thomas, the founder and chief editor at Top Rated, harbours a deep-seated passion for business, news, and product reviews. His thirst for knowledge and experience has led him on a journey across the length and breadth of the country, enabling him to garner a wealth of insight. At TopRated.ie, his sole aim is to deliver meticulously researched news and provide impartial reviews of fact checked Irish companies, thus helping readers make well-informed decisions.

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