Close Brothers enters Irish PCP market with used car guarantee scheme

Alejandro Gonzalez

Tue, Apr 8, 2025, 4:39 AM 2 min read

Close Brothers Motor Finance has launched a caller utilized car PCP merchandise successful Ireland that aims to de-risk second-hand conveyance concern for dealers and grow entree to much affordable concern for customers.

Branded arsenic Close PCP, the merchandise introduces a guaranteed minimum aboriginal worth (GFV) crossed a wide conception of the utilized car marketplace – a determination the institution says volition marque astir 24,000 further vehicles eligible for PCP deals.

The improvement addresses a long-standing constraint successful the Irish centrifugal concern market. While PCP deals relationship for astir a 3rd of car purchases wide and are the preferred concern enactment for astir 70% of Irish motorists (Carzone.ie), lone astir 5% of utilized car income are PCP-funded. A cardinal crushed has been the constricted availability of GFVs connected utilized stock, which has near dealers exposed to depreciation risk.

Close PCP removes that obstruction by underwriting the aboriginal worth of the vehicle. According to the company, this enables dealers to connection PCP concern connected a wider scope of vehicles without taking connected residual worth risk, opening up further banal for retail.

Donal Murphy, Managing Director of Close Brothers Motor Finance Ireland, said the merchandise is present disposable to each 2,500 franchised and autarkic dealerships operating successful the Republic. “We’re shifting the depreciation hazard from the trader to ourselves. That allows retailers to connection much competitory concern presumption and adjacent much deals connected higher-value vehicles.”

Used car transactions successful Ireland person risen by astir 30% year-on-year arsenic of August 2024, but the deficiency of PCP options has been a limiting origin successful converting involvement into higher-value sales. With mean car prices present €3,700 higher than successful 2020, Close Brothers says affordability is simply a increasing interest for some dealers and buyers.

PCP deals nether the caller strategy importantly trim monthly payments. For example, Close Brothers estimates that a 2022 VW Golf would outgo astir €529 per period nether Close PCP, compared to €736 connected a emblematic prosecute acquisition (HP) deal. A 2024 Audi Q5 could spot repayments chopped by much than €600 per month.

Stephen Bradshaw, Head of Marketing astatine Close Brothers Motor Finance, said the institution is backing the motorboat with a nationwide multi-channel run targeting some dealers and consumers.

Bradshaw said: “This is simply a important measurement for america successful Ireland. With PCP present disposable crossed much of the utilized conveyance park, dealers tin pull a broader lawsuit basal portion preserving margin. We promote our partners to speech to their relationship managers astir getting started.”

Close Brothers Finance DAC, trading arsenic Close Brothers Motor Finance, is simply a part of Close Brothers Group plc and re-entered the Irish marketplace successful April 2024.