In less than four years Renault and Dacia Dealerships have generated over €200 million in finance to 12,000 Irish motorists through the Renault Group’s own bank.

The 26 dealerships around the country act as local branches of Renault Finance which also serves the Dacia brand.

Renault Finance opened for business in Ireland in 2011 with just three staff in the midst of the recession when motor finance wasn’t readily available. Almost four years later, there is 22 local staff employed at its Dundrum headquarters.

Since Renault Finance arrived in Ireland the market has changed considerably. In 2011 PCP (Personal Contract Plan) was a relatively unknown finance product and today 40% of Renault’s retail customers are taking a PCP product.

PCP reduces a monthly payment versus a personal loan or traditional hire purchase. Customers can save up to 30% less with the same finance amount over the same period with a PCP.

Renault Finance is a subsidiary of the RCI (Renault Credit International) Banque which recently passed all aspects of the European Bank’s stress test.

According to the report, RCI Banque’s capital is well above the regulatory requirement and the stress test confirmed the strength of the balance sheet of RCI Banque.  The resulting solvency ratio comes to 9.1%, compared to the 5.5% mandatory threshold. The Stress Tests were aimed at evaluating the resilience of the bank balance sheets under various crisis scenarios. 

Dacia, Renault Group’s second car brand, launched here less than two years, now commands a 2.3% share of the passenger car and is a key part of the banks’ success.

Since launch Dacia Finance has lent over €20 million to over 1,500 Irish customers with Dacia customers more inclined to take a PCP Product.

Gaelle Humbert, Managing Director, Renault Finance says: “PCP is a good fit for the Dacia no-frills brand as it provides customers with a choice at the end of the finance agreement. This product provides security as there is a guaranteed minimum future value for the car. This means little chance of negative equity, which speaks to Dacia customers who take a practical approach. The availability of the finance, the different payment options and the low interest rates has unquestionably helped Dacia to reach 2.3% market share in such a short space of time. Consumers today are looking for simple, affordable and transparent ways to purchase new vehicles. We pride ourselves on having finance specialists in each of our 26 branches across the country, keeping payment options affordable and ensuring what can sometimes be deemed as a complicated process simple!”