Finance levels on rise

Report: proportion of vehicles offered for sale with finance outstanding is up

Finance levels on rise

Vehicle data expert CARTELL.IE reports that the proportion of vehicles offered for sale (across all years) with finance outstanding is 17.5% - up from 16.6% in December 2018 and 11.5% in January 2017.

Cartell.ie also reports that more vehicles for certain key registration years are being offered for sale with finance outstanding than in 2018.

From a sample of over 5,906 vehicles offered for sale and checked via the Cartell.ie website in the first 6 months of 2019, the figures show that more than forty percent (41.55%) of three-year-old vehicles are offered for sale with finance outstanding.

In the case of one-year-old vehicles (2018) the levels of vehicles offered for sale with finance outstanding has risen from 33.3% for the equivalent period last year 2018 to 40.78% so far in 2019 – representing an increase of 22.46%.

This means there is now more than a two-in-five chance of a one-year-old vehicle being offered for sale with finance outstanding.

Similarly in the case of two-year-old vehicles (2017) there is a 38.31% chance of a vehicle being offered for sale with finance outstanding based on checks on Cartell.ie in the first 6 months of 2019.

Statistics published by Cartell.ie indicate that buyers have more than a two-in-five chance (41.55%) of purchasing a three-year-old vehicle (2016) with finance outstanding.

Even older vehicles are regularly offered for sale with finance outstanding – 16.43% of all 2013 registered vehicles offered for sale in 2019 had outstanding finance against them.

John Byrne, Cartell.ie, says, “42 per cent of all three-year-old vehicles (2016) checked in the first 6 months of 2019 on Cartell.ie have finance outstanding.

“This is up from 39% of three-year-old vehicles (2015) checked last year on the site over the equivalent period.

“The rise is possibly attributable in some cases to expiring PCPs where owners are testing the market to see if they can return a higher price than the Guaranteed Minimum Future Value (GMFV) guaranteed by the dealer.

“What’s really concerning is that finance levels are up all across the years and the headline figure of 17.5% overall is particularly concerning.

“Buyers are strongly advised to be cautious in the market as you cannot take good title in the asset until the final payment has been paid to the financial institution. This means you may be buying a huge problem.”