The Pat Kenny Show The best and most sensible way to finance a car
Dec 8, 2025
Geraldine Herbert, Motoring Editor and car finance expert, shares insights on smart ways to finance a vehicle. She discusses why January is a peak month for car purchases and highlights attractive dealer incentives like 0% APR for electric vehicles. Geraldine compares paying cash versus borrowing and explains the benefits of personal loans. She also tackles the pros and cons of PCP agreements, including potential equity and mileage penalties. Additionally, she addresses rising driving test wait times and introduces a women-only taxi initiative in Dublin.
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Prefer Cash Or A Bank/Credit Union Loan
- If you have cash, use it but keep an emergency buffer and avoid cleaning out savings entirely.
- If you want to own the car, take a personal loan or credit union loan and spread repayments over a few years for flexibility.
Use PCP Only For Short-Term Use
- Avoid PCP if you want to own the car; use PCP only to pay for the use of a car over the term.
- Keep PCP deposits low (around 10%) and prefer HP or loans if you want ownership at the end.
PCP Is Basically Paying Depreciation
- PCP repayments cover predicted depreciation, so choose models that hold value to improve end-of-term equity.
- Popular brands often set residuals that create positive equity you can use as a deposit for your next deal.