Bank of Ireland Finance (BIF) has joined several of its competitors in lowering motor loan rates. BIF now offers a variable rate APR of 8 per cent and a fixed rate APR of 8.5 per cent on motor loans of £5,000 (€6,348) or more.

Over five years, a variable rate loan of £10,000 with BIF costs £201.33 per month without payment protection and £220.60 including the plan. The same loan at a fixed rate costs £203.70 and £223.40 respectively. There are no arrangement fees or additional charges.

When announcing the new rate last month, Bank of Ireland Finance's managing director, Mr Tom Comerford, said customers should find out the full cost of credit and conditions that may apply, such as payments up front, deposits and balloon payments from lenders before making a decision.