Outstanding Finance still a serious problem

The Irish Times today use statistics provided by Cartell on levels of finance

Statistics published today by Used Car History Check experts Cartell.ie indicate that buyers have a 1 in 5 chance of purchasing a three year old or four year old vehicle with finance outstanding. From a sample of over 5906 vehicles offered for sale and checked on the Cartell.ie website in 2011 the figures show that for 2008 and 2007 registrations, the percentage of vehicles on finance is 21 and 20% respectively.

Another noticeable development is the overall increase in the numbers of 2011 vehicles offered for sale in the first half of 2011 which are still on finance. Prospective buyers are advised to check the financial background of a car they are interested in with a vehicle checking company such as Cartell. With most car finance running for between three and five years the percentage of cars offered for sale with loans declines in older vehicles although, shockingly, there is still a 1 in 10 chance of buying a 2004 vehicle on finance. 

Jeff Aherne, co-founder and director of Cartell.ie, comments on the figures:  “While the trend up until 2009 showed a year-on-year increase in the numbers of vehicles sold on finance that figure dipped last year, probably because finance was more difficult to obtain. The first half of this year indicates a return to increased-numbers of vehicles sold on finance. One explanation for this is that while the recession made it more difficult for buyers to secure finance from High Street Banks car manufacturers stepped-in to offer loans which were more obtainable.”

Finance Probability by Year

Year Probability *
2002 3.5%
2003 7.5%
2004 10.5%
2005 10.5%
2006 14.5%
2007 20.5%
2008 21%
2009 19%
2010 17.5%
2011 19.5%

*Results as of Q3 2011, percentages rounded to 0.5%

You can read our equivalent report on 2010 finance levels here.

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