Volkswagen Ireland commissioned a survey of 1000 adults about how they feel about car finance in advance of the launch of the 152 registration plate on 1st July.
The results show the differences between young and old when it comes to financing a new car, and hint that there is still work to do in educating the consumer in how to calculate the best deal.
- More than a quarter (27%) of consumers in Ireland who have a car loan have no idea what interest rate they are paying on their motoring finance. That’s right, NO IDEA!
- 25 – 44 year olds are most likely to borrow to finance their motoring needs, with 20% saying they have a car loan.
- Just 12% of 18 – 24 year olds have a car loan.
- Car financing is most common between 25 and 54 year olds. Once motorists reach 55 years of age, borrowing to finance a car drops to just 15%.
- 51% of car loans are for values of between €7,000 and €17,000, with just 8% of consumers borrowing more than €20,000.
- 21% pay an interest rate of between 4% and 5%, 15% pay between 6% and 7%, and 12% pay between 2% and 3%.
- 18 – 24 year olds are the savviest shoppers with the majority (64%) paying less than 5%.
- 39% would consider PCP finance for their next car.
The take home message? Do your sums and know how much the finance agreement on your new car is costing you.