See all Motoring NewsIt would appear that the recent car-buying trend, that has seen purchasers shift to PCP as the best way to own a new car, has resulted in a growing risk for second-hand buyers, according to Cartell.ie - that of outstanding finance.
From a sample of 5,906 vehicles offered for sale and checked via the Cartell.ie website so far in 2017, the total percentage of cars on sale with finance still owing on them is 12.5 per cent - up from 11.5 per cent in January 2017 and 9.5 per cent in June 2016.
Furthermore, looking at data only on cars that are up to three years old, the chances of buying a vehicle with finance outstanding balloon to more than 33 per cent.
For one-year-old vehicles, Cartell.ie found that 36.83 per cent of 2016-registered cars up for sale had finance outstanding on them, compared to 31.58 per cent for 2015-registered cars on sale last year.
For two-year-old vehicles on sale (2015 registrations today), the figure was 32.64 per cent with finance outstanding. And for three-year-old cars, it's a one-in-three shot that the used motor you're thinking of buying still has money owing on it from the previous 'owner'.
John Byrne, from Cartell.ie, said: "Fully 33 per cent of all three-year-old vehicles (2014) checked so far this year on Cartell.ie have finance outstanding. This is up from 26.8 per cent of three-year-old vehicles (2013) checked last year on the site.
"The rise is probably due 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) provided by the dealer. What's really concerning is that 34 per cent of all vehicles registered in the last three years are offered for sale with finance outstanding.”
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