17 Jul 2017 | 10.00 am
First Auto Finance Launches New PCH Product
Contract hire aimed at transient executives
17 Jul 2017 | 10.00 am
First Auto Finance has launched a new car finance product that is aimed at people working in Ireland with international companies on two or three-year contracts.
The new product is designed around a long-term rental agreement for new cars, which can cover everything except fuel. First Auto Finance is a subsidiary of Finance Ireland, the largest non-bank lender in the country. The company has over 40,000 customers and its loan book is almost €500m.
Managing director Frank Donnellan (pictured) said that the new personal contract hire product is designed for the growing number of senior executives working for multinational companies based in Ireland on relatively short-term contracts.
“They want a no-fuss, all-inclusive car finance option. Given that they will be here for a relatively short period, we’ve designed a PCH product to give them all the benefits of car ownership without any of the downsides or financial risk,” he added.
Donnellan also suggested that PCHs are a good financial solution for companies who have made the decision to switch drivers from company cars to a monthly mileage allowance. First Auto Finance is also launching a four-year version of its personal contract plan products. PCPs typically run for three years, so the new product will result in lower monthly repayments over a longer period.
PCPs are a form of hire purchase agreement which enable consumers to acquire a new car for a deposit and monthly repayments, before handing back the vehicle, trading it in for another or paying off the remainder of the loan and keeping it.
“Despite some recent negative commentary around PCPs, we believe they are a great way to acquire a brand new car every three years,” said Donnellan. “We are now seeing many customers taking out their second PCP. If you are doing average mileage and keep your car in good condition — which most people do – they are worth serious consideration.
“If you do high mileage or you want to own your own car then clearly they are not for you. But if you want to drive a new car every three years, avoid the higher running costs associated with older cars and protect yourself against falling used car values, then they are the way to go.”