Cars on installments for young people in Ireland are becoming more accessible in 2025 thanks to tailored financing plans from banks, credit unions, and car dealerships.
Cars on Installments for Young People in Ireland: 2025’s Best Options and Real Advice
In Ireland, buying your first car can be both exciting and overwhelming — especially if you’re a student, recent graduate, or just starting your first job. Vehicle prices have risen in recent years, and not everyone can afford to pay in full. That’s why cars on installments for young people have become a popular and realistic solution across the country.
From hire purchase and personal contract plans (PCPs) to credit union loans and dealer promotions, young drivers now have a variety of flexible payment options to get on the road. This article breaks down the most current 2025 options available in Ireland, how to qualify, and what to watch out for.
1. Can Young People in Ireland Buy Cars on Installments?
Yes, absolutely. In fact, installment-based financing is one of the most common ways to buy a car in Ireland — especially for those aged 18 to 30. These are the main options:
- Hire Purchase (HP)
- Personal Contract Plan (PCP)
- Car loans from banks or credit unions
- Dealer finance promotions
- Family-guaranteed loans or co-signing
Each option comes with pros and cons depending on your income, credit history, and whether you want to own the car outright or upgrade after a few years.
2. Hire Purchase (HP): A Popular Option for Young Buyers
How it works:
- You pay a deposit (typically 10%-20%)
- Monthly repayments over 2–5 years
- At the end of the term, you own the car
Pros:
- Fixed repayments
- Own the car after final payment
- Available for both new and used vehicles
Cons:
- You don’t own the car until the last payment
- Early repayment penalties may apply
Example (2025):
- Car price: €12,000
- Deposit: €2,000
- Monthly payment (48 months): ~€230
- Interest: ~7.5% APR (varies by provider)
Available from:
- Bank of Ireland
- AIB Car Finance
- Car dealerships like Joe Duffy or Windsor Motors
3. PCP – Personal Contract Plan: Ideal for New Cars
How it works:
- Lower monthly payments than HP
- Balloon payment or vehicle return at end of term
- Flexible end-of-term options: keep, upgrade, or walk away
Great for: Young people who want newer cars and don’t mind switching every 3 years.
Cons:
- Mileage and wear restrictions
- You don’t fully own the car unless you pay the balloon amount
Available from:
- Volkswagen Bank
- Renault Finance
- Toyota Ireland
- Ford Credit
4. Credit Union Car Loans – Community-Based, Youth-Friendly
Many Irish credit unions offer unsecured car loans with affordable rates and no hidden fees. They often support young members starting out.
Features:
- No balloon payments
- Interest only on reducing balance
- Supportive of first-time borrowers
Average interest rate (2025): 6%–8% APR
Notable examples:
- St. Canice’s Credit Union – offers student and graduate loans
- Savvi Credit Union – first car loans with flexible terms
- Capital Credit Union – tailored plans for young adults
5. Student & Graduate Car Loan Packages
Some Irish banks now offer student or graduate-focused car finance plans.
AIB First Car Loan (2025):
- For ages 18–25
- Loans from €2,500 to €20,000
- No need for full-time employment (if student grant or part-time work exists)
- Flexible repayment terms (up to 5 years)
Bank of Ireland Graduate Finance:
- For recent graduates
- Up to €25,000
- Competitive interest rates
- Online application portal
6. Dealership Promotions – Entry-Level Cars for Young Drivers
Car dealerships across Ireland regularly offer installment deals targeted at young or first-time buyers.
Look for promotions like:
- “€0 deposit until March 2025”
- “Free insurance for under 25s”
- “3 years servicing included”
- “€99 per month finance offers”
Dealerships with active campaigns (2025):
- Windsor Motors
- Joe Duffy Group
- Kearys Carstore
- Spirit Motor Group
These offers are often tied to stock clearance or end-of-year deals and can help young buyers access newer cars with better finance terms.
7. What Do You Need to Qualify?
While requirements vary by lender or dealership, here’s a typical checklist for young buyers in Ireland:
| Requirement | Details |
|---|---|
| Age | 18+ |
| Residency | Irish resident with valid PPS number |
| ID | Passport or Irish driver’s licence |
| Proof of income | Payslip, part-time job, student grant |
| Bank statements | 3–6 months showing regular income |
| Credit history | Clean record preferred, but not always required |
| Guarantor (if needed) | Common for students or unemployed applicants |
8. Important Tips for First-Time Buyers
- Start with a realistic budget – Don’t forget tax, insurance, NCT, and fuel
- Get pre-approved – Know what you can afford before shopping
- Compare interest rates – Credit unions often beat bank rates
- Ask about early repayment penalties
- Check the total cost, not just the monthly payment
9. Example Breakdown: First-Time Buyer in Dublin
Emma, 22, student in UCD
- Buys a 2019 Ford Fiesta from Windsor Motors
- Price: €10,500
- Uses Credit Union loan (6.5% APR)
- No deposit
- 48-month repayment: ~€250/month
- Owns the car from day one
Emma qualifies through part-time income and her parents co-sign as guarantors.
10. Alternatives: Car Subscriptions and Rentals
For those who can’t commit to buying, car subscription models are growing:
- GoCar: Pay-per-use car sharing
- Toyota Kinto: Monthly fixed subscription with insurance
- Car Rental Long-Term Deals: Hertz, Sixt, Europcar
These can help young people access a vehicle without long-term debt.
Conclusion: Yes, You Can Buy a Car in Ireland on Installments
Getting your first car doesn’t have to mean draining your savings or relying on family. With a wide range of cars on installments for young people in Ireland — from credit union loans and bank programs to dealership offers — 2025 is a great year to start driving.
