Summarize and humanize this content to 2000 words in 6 paragraphs in English Close Brothers Motor Finance has launched a new used car PCP product in Ireland that aims to de-risk second-hand vehicle finance for dealers and expand access to more affordable finance for customers. Branded as Close PCP, the product introduces a guaranteed minimum future value (GFV) across a broad segment of the used car market – a move the company says will make around 24,000 additional vehicles eligible for PCP deals. Close Brothers Motor Finance, Close PCP promotional material The development addresses a long-standing constraint in the Irish motor finance market. While PCP deals account for roughly a third of car purchases overall and are the preferred finance option for around 70% of Irish motorists (Carzone.ie), only about 5% of used car sales are PCP-funded. A key reason has been the limited availability of GFVs on used stock, which has left dealers exposed to depreciation risk. Close PCP removes that barrier by underwriting the future value of the vehicle. According to the company, this enables dealers to offer PCP finance on a wider range of vehicles without taking on residual value risk, opening up additional stock for retail. Donal Murphy, Managing Director of Close Brothers Motor Finance Ireland, said the product is now available to all 2,500 franchised and independent dealerships operating in the Republic. “We’re shifting the depreciation risk from the dealer to ourselves. That allows retailers to offer more competitive finance terms and close more deals on higher-value vehicles.” Used car transactions in Ireland have risen by nearly 30% year-on-year as of August 2024, but the lack of PCP options has been a limiting factor in converting interest into higher-value sales. With average car prices now €3,700 higher than in 2020, Close Brothers says affordability is a growing concern for both dealers and buyers. PCP deals under the new scheme significantly reduce monthly payments. For example, Close Brothers estimates that a 2022 VW Golf would cost around €529 per month under Close PCP, compared to €736 on a typical hire purchase (HP) deal. A 2024 Audi Q5 could see repayments cut by more than €600 per month. Stephen Bradshaw, Head of Marketing at Close Brothers Motor Finance, said the company is backing the launch with a nationwide multi-channel campaign targeting both dealers and consumers. Bradshaw said: “This is a significant step for us in Ireland. With PCP now available across more of the used vehicle park, dealers can attract a broader customer base while preserving margin. We encourage our partners to talk to their account managers about getting started.” Close Brothers Finance DAC, trading as Close Brothers Motor Finance, is a division of Close Brothers Group plc and re-entered the Irish market in April 2024. “Close Brothers enters Irish PCP market with used car guarantee scheme” was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Keep Reading
