The global economic recession has had a profound effect on financial institutions across Europe. The pattern was repeated time and again by banks that made bad loans to risky clients who could not afford to pay them back. Many of these banks were forced to close their doors, while others limped on by dramatically cutting their services to customers. In this article we are going to discuss lending in Ireland.

Like most European countries, Ireland was hit hard by the recession, especially its banks. Those that survived vowed never again to lend to risky clients. In fact, many institutions have put a near freeze on consumer lending. What is a person to do if they are interested in getting a car loan in Ireland?

Fortunately, there are still a few viable financial options for Irish motorists. Probably the most popular one is obtaining a loan through the car dealership. Dealerships are able to offer reasonable rates because the volume of business they do gives them some leverage over lending institutions. As a result, they are able to offer attractive deals on loans and car insurance to potential customers.

Another popular option is a type of personal loan that is known as a purchase agreement. They are offered by banks and credit unions throughout the Emerald Isle. Which is the better deal?

It really does depend on the bank. As you might expect, getting a loan through a dealership is less complicated and rejection rates are much lower. But it is still a good idea to compare rates before you agree to anything.