It's no secret that, due to their own problems, the banks have been less willing to lend money for buying cars than they used to be. Some car makers, notably BMW and Volkswagen, have taken matters into their own hands by offering finance services and it appears that buyers are responding positively.
Data from Cartell.ie, the official vehicle records experts, shows BMW Financial Services and Volkswagen Finance in the top 10 returned matches for finance checks for 2011 to date. Neither of these featured in the equivalent data for 2009, with slow growth in 2010.
James Dullaghan, Murphy & Gunn BMW says: "a vehicle manufacturer is confident in the resale value of the vehicle so a finance package directly from the manufacturer makes sense. It provides access to credit for certain purchasers which in turn helps maintain high residual values for vehicles across the brand."
While the data does not represent market share of the financial institutions, it does indicate a shift away from a segment dominated by high street banks. The top nine returned lenders are:
1 - Irish Permanent Finance - 20%
2 - Lombard and Ulster 18%
3 - Bank of Ireland Finance - 17%
4 - Allied Irish Finance - 15%
5 - Bank of Scotland 11.5%
6 - Woodchester (GE Money) - 10%
7 - Friends First Finance - 4%
8 - BMW Financial Services - 2%
9 - Volkswagen Finance - 1.6%
A finance check, like that offered by Cartell.ie, is a necessity when buying a relatively young used car. It will indicate if there is any outstanding finance, which could become the responsibility of the new owner.
About Cartell.ie
Cartell.ie's tagline, "You find the car... We'll tell the story" says it all. Following a free car identity check a buyer has a choice of four different reports on the history of the car they are considering buying. It ranges from a useful history and mileage check to a report that also looks for any outstanding finance in Ireland or the UK. Cartell.ie even offers an engineer inspection. Thousands of Euros may be saved by using this service.