The study was conducted on behalf of Volkswagen Ireland. The researchers questioned consumers on how they feel about motoring finance in advance of the launch of the 152 registration plate.

When asked what interest rate they were paying, more than one in five consumers surveyed (21%) pay between 4% and 5%, more than one in seven (15%) pay between 6% and 7% and almost one in eight (12%) pay between 2% and 3%. When it comes to access to competitive interest rates, 18 – 24 year olds are the savviest shoppers with the majority (64%) paying less than 5% interest.

Looking at the demographics of who is borrowing to finance their motoring needs, 25 – 44 year olds are most likely to have a car loan (20%) compared to national average of 17% and just 12% of 18 – 24 year olds. While car financing is most common between 25 and 54 year olds, once motorists reach 55 years of age, borrowing to finance a car drops to just 15%. Most car loans (51%) are for values of between €7,000 and €17,000. Just eight per cent of consumers borrow more than €20,000.

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The Volkswagen research claims that 39% of respondents said that they were likely to look at personal contract plans (PCP’s) as a finance option, for their next vehicle. The majority (53%) of motorists say that they know what their total motoring costs are per month and per annum and almost a third (31%) would consider upgrading to a higher spec car if it could cut their running costs.

Volkswagen Group Ireland CEO, Lars Himmer, said that Volkswagen will be offering customers more on 152 orders with a range of additional extras including free styling and technology packs and competitive finance offers including PCP from 1.9% from Volkswagen Bank. Most models will also offer a lower APR when you opt for a higher grade model.