Buying our first car is one of those impressionable moments we remember for much of our lives. We probably remember the make and model, the first roadtrip taken with friends and family, and perhaps most of all, the degree of independence that car ownership provides.
But for the current generation of twentysomethings, securing the all-important finance required to purchase their first car has become much more difficult and problematic.
Although Ireland is on course to have the fastest growing economy for the fourth consecutive year, a legacy issue of the financial crash and recession years is an inability of many qualified and hard-working people to access motor finance from traditional banks and financial institutions.
Since late 2014, Bluestone has made in excess of €80 million available for young people to buy cars and for young businesses, or the self-employed, to finance equipment
You may be self-employed or a contractor; you may have completed your studies and gained a third- or fourth-level educational qualification; you may be a recently returned immigrant; perhaps you are a newly arrived emigrant working in Ireland’s technology sector; or you experienced financial difficulties during the financial crisis but can now demonstrate a stable income and a repaired credit history. If you are one of the above, the chances are you might struggle to finance a new car.
Bluestone Asset Finance is one of a group of new financial providers who are plugging the gap that thousands of young people are currently facing in securing appropriate finance for cars and equipment. The firm provides consumer finance to individuals and commercial asset finance to businesses and self-employed.
Donal Murphy, managing director of Bluestone Asset Finance, believes a new wave of competition in the Irish financial services is underway that is filling the vacuum provided by the reluctance or inability of traditional banks to cater for the 20 – 44-year-old age group.
"Bluestone Asset Finance is part of the solution required for young people to access their first loan and get on the financial ladder. We act as a bridge to finance for first-time buyers of car and equipment finance, enabling them to build up a financial track record for future years.
"Since late 2014, Bluestone has made in excess of €80 million available for young people to buy cars and for young businesses, or the self-employed, to finance equipment. There is strong demand for our products and with an expanding economy and demographics, we see continued growth for the next few years."
Bluestone is a growing international financial services group with its headquarters in Cambridge, England and offices in the UK, Ireland, the Philippines and Australia. Operating in Ireland since 2011, Bluestone provides hire purchase and leasing products through a national network of over 500 approved motor dealer partners and equipment brokers.
The company adopts a prudent underwriting philosophy to ensure it understands each applicant’s individual circumstances and maps out a repayment schedule that has a focus on ability to repay.
“Although the new car market is down almost 10 per cent year on year, Bluestone continues to grow volumes with 90 per cent of its loans written in the used car segment of the market which remains very strong. Bluestone has increased funding lines in place to meet continued strong demand,” explains Mr Murphy.
In addition to consumer finance, in late 2016 Bluestone expanded its offering by launching a new commercial asset finance product aimed at young businesses and self-employed contractors in the SME space, who are seeking to purchase agriculture or construction equipment.
Bluestone’s commercial asset finance arm offers three types of finance:
- Credit build: finance on agricultural or construction machinery for individuals or young businesses who do not have a long credit track record
- Credit repair: finance for individuals who may have had repayment issues in the past but whom can now demonstrate a stable income
- Refinance: options for refinancing existing assets.
To illustrate their customer profiles, Bluestone provides two examples of the type of situations young people may find themselves in when seeking to finance a car or equipment:
Finance case 1:
In case one, Roisin qualified in accountancy in 2010 but decided to work overseas due to the challenging economic circumstances in Ireland. In 2017, Roisin returned home to Ireland to take up a permanent position but discovered she could not obtain a bank loan to purchase a car due to a lack of credit history.
Finance case 2:
In case two, Bob, meanwhile, completes his apprenticeship as a plumber. The economy is looking up so Bob decides to work for himself as a self-employed provider. After twelve months, the business is growing and Bob now needs to hire an employee and provide him with a van. Unfortunately, Bob cannot get a loan from the bank as he does not yet have a minimum of three years trading history.
If you fall into one of these categories, or are just interested in hearing more about the company’s range of finance options, contact Bluestone Asset Finance for a consultation.
T: +353 1 644 8900
M: onlineenquiries@bluestoneaf.ie
W: bluestoneam.ie