You're moving to Ireland And you want a car without paying cash? The leasing is an option available even to recent residents. The application is almost always processed through a dealer affiliated with a financial institution, but your bank might also be an option. Here's how it works in practice.
How does car leasing work?
Leasing is a form of long-term lease with an option to buy. A bank or credit institution, known as the landlord, buys the vehicle for you. You then make monthly payments for a period specified in the contract, often 2 to 4 years.
You use the car as if it were yours, but you don't own it yet. If you don't pay your monthly payments on time, the lessor can repossess the vehicle. Most offers also require a first payment in advance at the start of the contract.
When the contract ends, you have two options:
- You buy the car by adjusting its residual value.
- You return to the landlord.
Why are leasing costs so high in Ireland?
Car leasing and rentals in Ireland remain expensive for one main reason: Demand far exceeds supply. Since Brexit, the island is facing a real shortage of vehicles. Supply issues from the United Kingdom have reduced inventory at rental agencies and dealerships.
The taxation also carries weight. The VRT (Vehicle Registration Tax), the Irish registration tax, is included in the listed price of new vehicles at dealerships. It automatically increases the cost of the vehicle—and therefore the cost of the lease.
How to lease a car in Ireland?
Leasing almost always involves the dealer, which works with a partner financial institution, often a subsidiary of the automaker, such as Volkswagen Financial Services Ireland Where Toyota Financial Services. You can also go through your bank (AIB, Bank of Ireland), but these companies mainly offer car loans, not true leasing.
Here are the specific steps:
- Choose your vehicle at a dealership (sedan, SUV, Ford Focus Where Volkswagen, for example).
- Request a financing quote from the dealership's partner organization.
- Put together your application with the required documents.
- Sign the contract once your application has been approved.
- Pick up the vehicle on the scheduled departure date.
Required Documents in Ireland
For a recent resident, the organization usually asks you:
- your driver's license valid (French driver's licenses are accepted); ;
- your PPS number, required for the credit check; ;
- of the proof of income and a credit card; ;
- a Irish bank account, often with a length of service of At least 3 to 6 months according to the organization.
This length of employment is not a universal rule. Some lenders accept foreign pay stubs or simply proof of employment in Ireland.
The contents of the contract and Irish-specific provisions
A lease agreement includes several key elements:
- the contact information for the tenant and the landlord; ;
- the vehicle description and its purchase price ;
- the security deposit and any advance payment due at the start; ;
- there rental period, usually 2 to 5 years (3 years being the most common); ;
- the monthly payments due and the residual value if the vehicle is purchased at the end of the contract; ;
- the cancellation period and the authority to contact in the event of a dispute.
The terms are set by the landlord based on your financial profile. He may deny your request if you don't meet his criteria. Still, leasing is often more advantageous than buying on credit, with lower monthly payments.
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