High Net Worth Individual - Car Financing
Discussion
Hi Chaps,
Wonder if any can give some advice?
I'm by no means going to be appearing on Dragons Den anytime soon but doing alright for myself and I'm looking to trade up and the dealer has said that I will need to be certified as a "High Net worth Individual" to get the best finance deal.
Never come across this before...what happens and what do they check for?
Cheers, Richard.
Wonder if any can give some advice?
I'm by no means going to be appearing on Dragons Den anytime soon but doing alright for myself and I'm looking to trade up and the dealer has said that I will need to be certified as a "High Net worth Individual" to get the best finance deal.
Never come across this before...what happens and what do they check for?
Cheers, Richard.
If you're really a High Net Worth individual why on earth would you need car finance....with interest rates at zero why borrow money to buy a depreciating asset ?
Look at the mortgage repayment stats......there are an awful lot of people who have a lot less money than a HNW that are paying debt down not borrowing it.
I think the definition of HNW is £1mil of investable assets.
Look at the mortgage repayment stats......there are an awful lot of people who have a lot less money than a HNW that are paying debt down not borrowing it.
I think the definition of HNW is £1mil of investable assets.
Performance car finance (www.performancecarfinance) have been recommended on here a few times (never used them myself).
From their website:
Stepping outside of the Consumer Credit Act means you lose some of the protection afforded by it but it opens up a very popular product. A variable rate Lease Purchase Balanced Payment Plan. We typically link this product to one month LIBOR offering you an ultra-competitive rate compared to a fixed rate transaction. The product also allows overpayments and attractive conditions on early settlement. We also have greater flexibility on the structure of the deal. See below for types of applicant who can apply
[b]High net worth individuals borrowing more than £25,000.00.
Criteria 1 – you received during the previous financial year net income not less than £150,000.00 and/or
Criteria 2 – you had throughout the year net assets with a value of not less than £500,000.00 with some exclusions such as your primary residence, insurance policies and pension benefits.[/b]
HTH
Sidicks
From their website:
Stepping outside of the Consumer Credit Act means you lose some of the protection afforded by it but it opens up a very popular product. A variable rate Lease Purchase Balanced Payment Plan. We typically link this product to one month LIBOR offering you an ultra-competitive rate compared to a fixed rate transaction. The product also allows overpayments and attractive conditions on early settlement. We also have greater flexibility on the structure of the deal. See below for types of applicant who can apply
[b]High net worth individuals borrowing more than £25,000.00.
Criteria 1 – you received during the previous financial year net income not less than £150,000.00 and/or
Criteria 2 – you had throughout the year net assets with a value of not less than £500,000.00 with some exclusions such as your primary residence, insurance policies and pension benefits.[/b]
HTH
Sidicks
Beardy10 said:
If you're really a High Net Worth individual why on earth would you need car finance....with interest rates at zero why borrow money to buy a depreciating asset ?
Look at the mortgage repayment stats......there are an awful lot of people who have a lot less money than a HNW that are paying debt down not borrowing it.
I think the definition of HNW is £1mil of investable assets.
As per mine and Sidicks posts, HNW is £150k of income.Look at the mortgage repayment stats......there are an awful lot of people who have a lot less money than a HNW that are paying debt down not borrowing it.
I think the definition of HNW is £1mil of investable assets.
You can be HNW and still not have £100k liquid cash to sink into a car, but have the monthly income to support it.
Sarnie said:
Beardy10 said:
If you're really a High Net Worth individual why on earth would you need car finance....with interest rates at zero why borrow money to buy a depreciating asset ?
Look at the mortgage repayment stats......there are an awful lot of people who have a lot less money than a HNW that are paying debt down not borrowing it.
I think the definition of HNW is £1mil of investable assets.
As per mine and Sidicks posts, HNW is £150k of income.Look at the mortgage repayment stats......there are an awful lot of people who have a lot less money than a HNW that are paying debt down not borrowing it.
I think the definition of HNW is £1mil of investable assets.
You can be HNW and still not have £100k liquid cash to sink into a car, but have the monthly income to support it.
Declaration according to the FSA is over £100k in income or £250k in net assets (i.e. not your house). But if you look up the definition it's widely accepted as being asset related.
One thing is for sure if you want to borrow £100k to finance a depreciating asset you're very unlikely to ever become ultra high net worth....
Beardy10 said:
Sorry but think about what "High Net Worth" actually means......the clue is in the word NET. It's not solely income related.
Declaration according to the FSA is over £100k in income or £250k in net assets (i.e. not your house). But if you look up the definition it's widely accepted as being asset related.
One thing is for sure if you want to borrow £100k to finance a depreciating asset you're very unlikely to ever become ultra high net worth....
But were not looking at the FSA's definition of HNW are we? This thread is what an Asset Financier deems it to be.......which is £150k income.Declaration according to the FSA is over £100k in income or £250k in net assets (i.e. not your house). But if you look up the definition it's widely accepted as being asset related.
One thing is for sure if you want to borrow £100k to finance a depreciating asset you're very unlikely to ever become ultra high net worth....
According to HM Revenue & Customs Statistics, the following Net Capital* was required in 2005 to qualify for the most wealthy percentages of the UK population:-
Top £
1% 895,947
2% 595,238
5% 362,997
10% 251,611
25% 100,572
50% 37,283
Top £
1% 895,947
2% 595,238
5% 362,997
10% 251,611
25% 100,572
50% 37,283
- Net Capital is defined as marketable wealth, including houses, stocks and shares and other saleable assets but excluding pension funds.
Sarnie said:
Beardy10 said:
Sorry but think about what "High Net Worth" actually means......the clue is in the word NET. It's not solely income related.
Declaration according to the FSA is over £100k in income or £250k in net assets (i.e. not your house). But if you look up the definition it's widely accepted as being asset related.
One thing is for sure if you want to borrow £100k to finance a depreciating asset you're very unlikely to ever become ultra high net worth....
But were not looking at the FSA's definition of HNW are we? This thread is what an Asset Financier deems it to be.......which is £150k income.Declaration according to the FSA is over £100k in income or £250k in net assets (i.e. not your house). But if you look up the definition it's widely accepted as being asset related.
One thing is for sure if you want to borrow £100k to finance a depreciating asset you're very unlikely to ever become ultra high net worth....
SL said:
Beardy10 said:
One thing is for sure if you want to borrow £100k to finance a depreciating asset you're very unlikely to ever become ultra high net worth....
Not all cars depreciate. Secondly name me a brand new car that won't depreciate? You could maybe flip a 458, but there's not that many.
I don't know any wealthy people who would finance a depreciating asset, simply because the borrowing costs and getting out of the car costs. There will be those that think they're wealthy, they're probably not.
SL said:
Beardy10 said:
One thing is for sure if you want to borrow £100k to finance a depreciating asset you're very unlikely to ever become ultra high net worth....
Not all cars depreciate. I remember seeing something in one of the forums about a guy who has managed to get a slot of the new 911 GT3 RS 4.0 and is buying it on finance.....now he may well make money on that and I think it's brilliant that he wants that car so much he's willing to borrow money to buy it but it's financial madness (he was selling his previous GT3 which he had obviously lost money on).
NDA said:
Beardy is spot on.
Secondly name me a brand new car that won't depreciate? You could maybe flip a 458, but there's not that many.
I don't know any wealthy people who would finance a depreciating asset, simply because the borrowing costs and getting out of the car costs. There will be those that think they're wealthy, they're probably not.
Ah, the OP didn't mention new/used so I just assumed (probably incorrectly) used.Secondly name me a brand new car that won't depreciate? You could maybe flip a 458, but there's not that many.
I don't know any wealthy people who would finance a depreciating asset, simply because the borrowing costs and getting out of the car costs. There will be those that think they're wealthy, they're probably not.
Edited by SL on Tuesday 26th July 20:13
NorthernBoy said:
According to whom? I've seen it classified on liquid assets, not wages. Given that it is most often used when deciding what investements to steer someone towards, wages is a terrible measure.
Not my area of expertise, but I assume that the FSA definition is what matters, as this dictates the level of protection for the investor.Effectively, by classifying yourself as a HNW individual you waive some of the protections that ordinary investors have.
Sidicks
"So what makes someone HNW, and do you qualify?
There are two criteria, and you must satisfy at least one to qualify:
1. Either have earned in excess of £150K in the last financial year
2. Have net assets, excluding your main residential property, of £500K"
Taken from a Car Finance website, as that's the context of the thread.
There are two criteria, and you must satisfy at least one to qualify:
1. Either have earned in excess of £150K in the last financial year
2. Have net assets, excluding your main residential property, of £500K"
Taken from a Car Finance website, as that's the context of the thread.
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