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Personal Contract Plans

Dáil Éireann Debate, Thursday - 8 March 2018

Thursday, 8 March 2018

Ceisteanna (72)

Michael McGrath

Ceist:

72. Deputy Michael McGrath asked the Minister for Finance the number of personal contract plan providers here; the number and value of PCPs in existence; the number and value of PCPs that are behind on their payments; and if he will make a statement on the matter. [11537/18]

Amharc ar fhreagra

Freagraí scríofa

As I stated previously in a reply to a question regarding this issue on 14 December, Personal Contract Plans (PCP) are a form of Hire Purchase and both the Central Bank and the Competition and Consumer Protection Commission (CCPC) have certain functions and legal powers in relation to the provision of hire-purchase agreements.

In 2017 the CCPC undertook the first comprehensive study of the PCP market in the State. As part of its study the CCPC issued detailed questionnaires to all the financial institutions that underwrite PCP finance in the State. This allowed the CCPC to compile, for the first time, primary data relating to the number and value of PCP finance contracts issued. The report was published on Tuesday last and is available at www.ccpc.ie.

In the State PCP finance is underwritten by standard financial institutions, manufacturer banks, and special purpose institutions which exclusively offer motor finance. Up to 1 August 2017 there were 6 financial institutions underwriting PCP contracts: Allied Irish Bank (AIB), Bank of Ireland Leasing Ltd.t/a Ford Credit, Bank of Ireland Finance, Volkswagen Bank GMBH Branch Ireland, RCI Bank and Services, First Auto Finance Ireland Limited, BMW Financial Services (Ireland) DAC trading as BMW Financial Services. Toyota Motor Group recently established Toyota Financial Services (Ireland) in Dublin.

The majority of PCP contracts (88%) are for new cars.

The following table presents the total number of PCPs issued for both new and second hand cars and the total value (€m) of PCP finance for 2015, 2016 and for 2017 up to 1 August 2017:-  

Year

2015

2016

2017(YTD)

Number of   PCPs issued

21,045

32,739

24,837

Total value (€m) of PCP finance

€488

€805

€619

The following table shows the level of arrears and defaults on PCP finance for 2015, 2016 and for 2017 up to 1 August 2017:-  

Year

2015

2016

2017(YTD)

Arrears

1.1%

1.2%

2.0%

Defaults

0.4%

0.3%

0.2%

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