Irish motorists do not feel confident when selecting car finance options with a quarter (24%) feeling they don’t have a good understanding of the different car finance options available, according to the latest Motoring Report from Carzone, Ireland’s trusted motoring marketplace.
The Carzone Motoring Report is compiled by analysing data from the 80 million+ car views carried out on Carzone in 2019, as well as an in-depth survey of over 1,500 Irish drivers.
Buying and financing a car
According to the Carzone Motoring Report, 39% of respondents intend to buy a car in the next year and nearly a third (31%) change their car every two to three years. The main reasons for purchasing a car is simply wanting a newer car (30%), the need for a more reliable car (21%) or they require a larger car for a growing family (16%).
It is clear from the data that Irish drivers are unsure when it comes to car finance, and the research highlights the perceived barriers to using car finance for motorists.
Over half (55%) of drivers are concerned about getting into debt, 44% are sceptical about the lump sum required at the end of a PCP agreement and 40% don’t like the idea of not owning the car outright when buying via PCP and hire purchase.
Using personal savings is the first option considered by car buyers when looking at financing a car (48%) followed by a bank loan (41%), Credit Union loan (34%), hire purchase (16%) and PCP (14%). Browsing online (90%) is the most popular way of researching car finance, followed by enquiring with a dealer (45%) and getting recommendations from friends and family (25%).
While most cars are still purchased in dealerships or private sale, motorists have become more open to buying a car online with 1 in 10 (10%) saying they would buy a car online without seeing it first. 77% say they would pay up to a €1,000 deposit online for a car while 17% would be open to paying for a car in full online.
Money and markets
The research found that insurance remains the top financial concern for 64% of Irish car owners.
Almost 1 in 5 (17%) cite the cost of fuel as their main worry, while 10% say general maintenance of their car is a financial concern.
Almost half (47%) of motorists claim their insurance premium has increased in the last year with nearly a third (30%) opting to switch insurance provider in the last 12 months. 40% have remained with their insurance provider for over three years.
6 in 10 (58%) motorists would consider buying a car from the UK with perceived better value (82%) being the main reason.
However, the research also finds that consumers are still cautious about purchasing a car from the UK with two thirds (63%) saying that buying a car in the UK is too much hassle.
Other doubts include that it would be high risk (35%) and worries about Vehicle Registration Tax (35%).
The latest Carzone Motoring Report finds that diesel remains the most popular engine type to drive with 58% of motorists owning this type of vehicle.
Over a third (39%) own a petrol-fuelled car while only 2% of respondents drive a hybrid or electric car.
However, motorists would consider a switch to electric and hybrid cars with 70% saying they plan to buy an electric or hybrid car in the future with the Nissan Leaf and Lexus IS300h being the most searched electric and hybrid vehicles on Carzone so far this year.
It seems younger drivers (18-24-year olds) are more environmentally conscious with three quarters (77%) likely to purchase an electric or hybrid car in the future compared to those over 45 years old (63%).
Cheaper running costs (57%), better for the environment (20%) and tax incentives (10%) were the top reasons why people would buy an electric or hybrid vehicle.
36% of people were unaware of the Government’s goal to reach 100% of all new cars and vans being EV’s by 2030, and only 16% feel that it is achievable.