Terrific.ie Car Finance

Super quick and easy car finance

Buying a new or used car is likely one of the most significant investments that you’re likely to make. For most people, paying for the vehicle up front isn’t a realistic option. When that’s the case, acquiring the car by way of finance can be a way of getting the vehicle you want, without having to worry about an unmanageable upfront investment.

We’ve designed Terrific.ie to be as useful for shoppers who wish to buy their next car using finance or cash! We have built dynamic search filters that allow you to browse for your next car with a monthly budget or overall cash amount.

What is car finance?

Put simply, car finance provides customers with a way to buy or hire a new car without having to pay the full cash amount up front. There are a few different types of car finance but the most common types, particularly in Ireland are Hire Purchase (HP) and Personal Contract Purchase (PCP).

Both types above, require a customer to pay a small up-front deposit, usually 10% of the cost price of the vehicle, and then a series of monthly repayments which depend on how long you would like your agreement to last. Find out more about HP and PCP below.

HP Explained

HP is the most popular form of car finance in Ireland, particularly when it comes to used cars. A HP agreement normally involves you paying an initial deposit and then a series of monthly repayments. HP agreements typically last for a duration of between 3 and 5 years. The deposit and term are generally flexible and are both decided by you.

The monthly payments are worked out by looking at the purchase price of the car, taking off your deposit (normally in the form of a trade-in of an older car), adding on the interest amount the dealer will be charging and then dividing the entire amount by the number of months duration of the agreement. This gives you a fixed monthly payment.

At the end of the agreed period, you will have paid for the car in full plus the specified interest. With this option you will own the car in full at the end of the agreement. The benefits of purchasing a car on Hire Purchase or HP are the facts that you will own the car at the end of the agreement (assuming you have made all the payments) and its easier to plan for financially as it’s a fixed monthly payment and you don’t need to be concerned with extra charges etc should you go over your agreed mileage over the term of the deal.

To find out more about both types of finance, view our HP and PCP case studies below.

PCP Explained

PCP is typically the second most popular form of car finance in Ireland and tends to have a higher uptake amongst new car buyers.

The concept behind PCP is similar to HP, you pay a deposit and fixed amount every month for the duration of the agreement, but the difference is that with PCP finance a large chunk of the purchase price of the car is taken off and reserved for the final payment of the agreement, this is known as the guaranteed minimum future value or GMFV. The GMFV should be a fair estimation of what the vehicle will be worth at the end of your agreement and will be agreed by you and the car dealer before you sign the agreement.

With PCP, you have a few options at the end of the agreement.

1. You can pay off the remainder of the purchase price and take ownership of the vehicle.
2. You can hand the keys back to the dealer.
3. If at the end of your agreement your vehicle is worth more than the initial GMFV you agreed with your dealer, you can use the difference between the vehicles existing worth and the GMFV as a deposit towards a new agreement.

To find out more about both types of finance, view our PCP and HP case studies below.