Supercar/Classic Finance Rates
Discussion
I'm in the nice position of being able to look to trade in my current car for something special, and no longer being a daily then practicality and reliability no longer matter. Finance is finished on my current car, and the daily is a shed, so while I don't have the cash I'd like to spend up front I still have the budget allocated every month. All the supercar finance places advertise 'give us a call to discuss your needs'. JBR capital have a nice finance tool which got me thinking, but I'm not particularly excited about the interest rates there.
I'm not spending an hour on the phone with each of these guys passing on my personal information looking for the best deal. I also know it's not uncommon to finance high end cars in this way, and also I've never financed a second hand car, so maybe PH can point me in the right direction to minimise the APR and make this a realistic proposition?
Cheers.
I'm not spending an hour on the phone with each of these guys passing on my personal information looking for the best deal. I also know it's not uncommon to finance high end cars in this way, and also I've never financed a second hand car, so maybe PH can point me in the right direction to minimise the APR and make this a realistic proposition?
Cheers.
A lot depends on the age of the car.
Anything up to 5 years old will be eligible for PCP type agreements at typical used car terms from 5.9 - 10.9% APR. little or no deposit required and a final payment ( balloon, Optional Final Payment , GFV, call it what you will ) of at best 40% of invoice price regardless of how much a sure fire depreciation proof investment you feel your purchase is going to be.
Anything up to 10 years old you will be able to get a Hire Purchase agreement, often up to 5 years term.
As well as these conventional agreements, companies like JBR also offer agreements that circumvent the Consumer Credit Regulations. Freed from the obligations of you being able to hand back the car or do a Voluntary Termination they can offer you a much bolder final payment which in term gives you a much lower monthly payment.
This is the kind of agreement that gives you a £100000 car for £500 or £600 per month with a small deposit.
BUT the final payment and any negative equity when you come to sell the car remains firmly your problem. Additionally, being an Unregulated Agreement they are not obliged to offer you any discount from the Total Amount Payabke if you wish to settle the agreement early.
It's strictly for big boys with big wallets who won't cry or lose their home if they find themselves £30000 the wrong way at the end of the agreement, and that's why it's advertised as "Please call us to discuss your requirements" . It would be irresponsible to market it to people who may be attracted to the payments without fully understanding the consequences.
The number of lenders who operate these schemes is small and the risk for the lender is also high as there is always a high loan to value ratio in the event that the car gets repossessed. As a result of this the rates can often be much higher than "normal" agreements'
Discussing your requirements with a dealer or broker won't usually mean them needing to submit a finance application on your behalf, certainly they won't do that without your permission, but they will obviously need to ask you some questions about your circumstances so they determine which products you are eligible for. Give them a call!
Anything up to 5 years old will be eligible for PCP type agreements at typical used car terms from 5.9 - 10.9% APR. little or no deposit required and a final payment ( balloon, Optional Final Payment , GFV, call it what you will ) of at best 40% of invoice price regardless of how much a sure fire depreciation proof investment you feel your purchase is going to be.
Anything up to 10 years old you will be able to get a Hire Purchase agreement, often up to 5 years term.
As well as these conventional agreements, companies like JBR also offer agreements that circumvent the Consumer Credit Regulations. Freed from the obligations of you being able to hand back the car or do a Voluntary Termination they can offer you a much bolder final payment which in term gives you a much lower monthly payment.
This is the kind of agreement that gives you a £100000 car for £500 or £600 per month with a small deposit.
BUT the final payment and any negative equity when you come to sell the car remains firmly your problem. Additionally, being an Unregulated Agreement they are not obliged to offer you any discount from the Total Amount Payabke if you wish to settle the agreement early.
It's strictly for big boys with big wallets who won't cry or lose their home if they find themselves £30000 the wrong way at the end of the agreement, and that's why it's advertised as "Please call us to discuss your requirements" . It would be irresponsible to market it to people who may be attracted to the payments without fully understanding the consequences.
The number of lenders who operate these schemes is small and the risk for the lender is also high as there is always a high loan to value ratio in the event that the car gets repossessed. As a result of this the rates can often be much higher than "normal" agreements'
Discussing your requirements with a dealer or broker won't usually mean them needing to submit a finance application on your behalf, certainly they won't do that without your permission, but they will obviously need to ask you some questions about your circumstances so they determine which products you are eligible for. Give them a call!
Edited by Wooda80 on Sunday 12th January 20:21
Wooda80 said:
It's strictly for big boys with big wallets who won't cry or lose their home if they find themselves £30000 the wrong way at the end of the agreement, and that's why it's advertised as "Please call us to discuss your requirements" . It would be irresponsible to market it to people who may be attracted to the payments without fully understanding the consequences.
Thanks, you certainly seem much more in tune than I am with this. As someone that does understand the consequences, and someone looking to ideally put down a 60K deposit on a 120-150K car, then there will (should) never be negative equity on the asset. 8-9% APR is not appetising to me as a borrower <6% and I'm keen. My last deal was 2.9% apr on a new car, way higher risk of negative equity or default but still infuriatingly accessible compared to buying used.New car rates are often subsidised by the manufacturer to increase sales. Used cars don't have that support.
Again, your options will depend on the age of the car.
If you are considering buying from a dealer then they should be able to give you alternatives. Dealers who are part of a large plc may be limited in whose finance products they can offer. Non franchised specialists will often have a broker with whom they work who will have a broader portfolio of products.
Deals with a low monthly payment and a large balloon have a poorer yield for the finance company, they make less of their money back until the very end, which also has a bearing on rate.
You may find lower rates via personal loan or taking an advance on your mortgage etc, but it's just weighing up whether the repayments then fall within your plan.
Again, your options will depend on the age of the car.
If you are considering buying from a dealer then they should be able to give you alternatives. Dealers who are part of a large plc may be limited in whose finance products they can offer. Non franchised specialists will often have a broker with whom they work who will have a broader portfolio of products.
Deals with a low monthly payment and a large balloon have a poorer yield for the finance company, they make less of their money back until the very end, which also has a bearing on rate.
You may find lower rates via personal loan or taking an advance on your mortgage etc, but it's just weighing up whether the repayments then fall within your plan.
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