Close PCP launched to offer future value guarantee for dealers

Close Brothers Motor Finance has entered the Irish PCP finance market with the launch of ‘Close PCP’, which it hopes will qualify thousands more vehicles for PCP (Personal Contract Plan) funding.

The company claims its new product is a first of its kind in Ireland and aims to unlock the second-hand car market for motorists whilst also providing a future value guarantee for dealers.

This will bring “an extra 24,000 higher-spec, second hand vehicles into the scope of PCP”, according to the firm.

By taking depreciation risk off of Irish forecourts, Close Brothers says the guarantee empowers car dealers to offer PCP finance on a greater range of vehicles without the risk.

CarsIreland.ie currently lists around 24,000 vehicles which qualify for PCP deals that would have previously been too risky for dealers to offer with PCP.

Close Brothers Motor Finance estimates that by launching Close PCP and offering minimum future value guarantees to the PCP market, the percentage of PCP funded used car sales could see significant growth.

Donal Murphy, managing director at Close Brothers Motor Finance Ireland said: “As of today, our innovative Close PCP product is available to all of Ireland’s roughly 2,500 car dealerships. We believe that by taking the risk of market depreciation off the forecourt and onto our own books, we can help dealers offer a much greater range of vehicles to prospective car shoppers.

“This is good news for drivers, meaning more choice and lower prices on higher-spec second hand cars. It’s good news for Ireland in that newer cars are cleaner cars and it’s good news for dealers, meaning they’re no longer hamstrung in what they can offer their customers by the risk of depreciation.”