Buying a new or used car is exciting — especially when you’ve found the one. But when it comes to car finance in Ireland, a few simple missteps can cost you time, money, and even approval. At Gerry Caffrey Motors in Terenure, Dublin 6W, we’ve helped countless customers navigate car finance the right way. Here are five common mistakes to steer clear of.
It sounds obvious, but we often see drivers jump into finance applications before figuring out what they can comfortably afford. Between insurance, NCT fees, tax, and the odd pothole repair, the monthly repayments are just one piece of the puzzle.
Take a few minutes to work out your total car budget — not just the purchase price. Remember to factor in the total cost of ownership, including fuel, servicing, insurance, and any unexpected expenses.
A clear plan makes for a smoother finance approval and fewer surprises later.
Tip: Try our Car Finance page for quick estimates and tailored repayment options.
In Ireland, your credit record can significantly impact what finance options are available. Missed payments or old loans may raise red flags and affect your credit rating. Before applying, check your credit report with the Central Credit Register or Experian Ireland to make sure everything’s in order.
Lenders will assess your ability to repay the loan amount based on your credit history, income, and other lending criteria. Understanding these factors can improve your chances of approval and help you decide which finance agreement suits you best.
If you’re unsure, our team can help you understand what lenders look for — especially if it’s your first time applying for car finance.
That sporty Suzuki Swift might have low monthly instalments, but don’t forget the extras: fuel efficiency, insurance brackets, annual servicing, and fees like the documentation fee or purchase fee associated with your finance agreement.
At Gerry Caffrey Motors, we offer flexible car finance options, including hire purchase agreements and personal contract plans (PCP agreements). Each has different terms, such as optional final payments or guaranteed minimum future value, which can affect your total cost and ownership timeline.
Understanding the difference between a hire purchase agreement and a PCP agreement is crucial. A hire purchase agreement means you pay off the full loan amount over time, gaining ownership once all payments are complete. A PCP agreement involves lower monthly payments but includes a lump-sum optional final payment if you want to keep the vehicle at the end of the term.
We’ve seen many Dublin drivers save more long-term by choosing a slightly newer, better-equipped used Suzuki instead of an older, cheaper model.
Dealership finance isn’t your only option — but it’s often one of the most flexible. Still, it pays to compare. Personal loans or car loans from your bank might have different rates and terms, but may not include the same trade-in or upgrade benefits that come with dealer finance.
At Gerry Caffrey Motors, we work with trusted Irish finance partners regulated by the Central Bank of Ireland to tailor packages for your situation — whether you’re upgrading your family car or trading in for a Suzuki Hybrid.
Understanding the differences between a hire purchase agreement, a personal contract plan, or a consumer hire agreement can help you choose the best fit. Make sure to review the total cost, interest rates (annual percentage rate), and any potential pay charges or fees for early repayment.
Also, be aware of BNPL agreements (Buy Now, Pay Later), which some lenders offer. While they can be convenient, they may come with higher interest rates or penalties if payments fall into arrears.
One of the biggest mistakes we see? Underestimating what your current car is worth. Even if your old car has seen better days, it can make a real difference to your finance deal by reducing your deposit and monthly payments.
We offer free trade-in valuations on the spot, so you can see exactly how much it reduces your repayment plan.
Also, be prepared with the necessary documents when applying for finance. This may include your full name and address as shown on your current account, a recent utility bill, proof of income, and other documents required to qualify.
Some finance agreements may require security, such as the vehicle itself, until the loan is fully repaid. It’s important to understand this aspect because failing to keep up with repayments can lead to your account going into arrears, which may affect your credit rating and ability to access credit in the future.
If you’re considering settling your hire purchase agreement early, be aware that there may be fees involved for early repayment. However, settling early can sometimes save you money on interest.
When calculating your repayments, consider the loan amount, interest rate, loan term, and any associated fees like documentation and purchase fees. Using an online loan calculator can help you get an illustrative idea of what your monthly payments might be.