What's a good rate on supercar finance?

[biondi]

Hi,

Started looking at financing quite recently (~£100k car, ~£30k deposit with a final balloon payment) and have spoken to a handful of lenders/brokers.

Just wondering what you think a good rate is these days? I had a quote yesterday with a nice-sized balloon on the end but the rate was 8.5%, seems a bit high to me. Can you actually haggle with these guys do you know?

Thanks,

Matt

[biondi]

NickCQ said:

£100k is not a supercar.

Thanks for your input.

[biondi]

turbobloke said:

Doesn't the offer rate depend to a reasonable degree on credit profile matters?

It's still worth looking around as each source of finance will have its own way of looking at things.

Thanks turbobloke - well, I'm not sure, I guess this is what I'm going to find out.

[biondi]

jw673 - many thanks for your lengthy reply, much appreciated.

To provide an example from last week, and I won't mention the lender as I don't think that's fair considering how quickly things can change. The two variables on my side are the cost of the car (which may be from £100k-£120k) and the deposit, which could be from £25k upwards, depending on how long it takes to find the car and how long it takes to convince my wife I haven't lost my marbles.

The figures I provided to the lender were:

car details: £100k, Gallardo LP-550, MY2011, ~15000 miles
deposit: £25k
Repaypemt period: 48 months

The numbers I got back were £855 a month for 48 months, then a final balloon of £55k.

This was the only quote I've had where the payments were <£1000 a month, due to the higher final balloon I guess. However, the rate I was quoted here was higher than the others.

Thanks,

Matt

[biondi]

Best of luck, and ignore the PH whingers ("How much interest?!??!", "I would never do that!","Have you thought about investing it in property/bitcoin/penny stocks/P2P lending/a miserable divorce?", etc).

[/quote]

Thanks - yeah, I've seen a few posts like that so kinda expected a bit of it Your posts have been very informative though and your time appreciated. I'm going to call the lender tomorrow actually and see if there's any movement in that rate, should get a feel for it based on their reaction. Will happily post here for future readers.

Everyone's situation is unique and (at least for me) if I can do this without impacting the family/financial commitments then why not? Are there 'better' places to put my money? Well, that depends on how you define 'better'. Certainly not going to make any money out of this but money's not everything..

M

[biondi]

si800 said:

OP, I have used Mann Island several times and they've generally got me between 4.9 - 5.9% dependent on the vehicle at the time. They have access to the likes of Alphera, Aldermore, Close Brothers etc.

Thanks for this, will give them a go!

[biondi]

Yeah, it's going to take a bit of research from my side. I do have investments so could pay a sizeable lump using some of this, but the cost of the finance is less than the money I'm making with the investments, so in my rather simple head it doesn't make sense to do that. I'm under no illusion I'm going to be financially worse-off after this but as I said earlier, money isn't everything. I'm 46 and right now I'm healthy, happy and have some money left over each month - so why not, in a few years I might not be able to.
I've spoken to a few brokers and lenders this morning, 8-8.5% seems to be the going rate for something like this, which is a bit dissappointing as I was hoping it would be less. I'll continue to talk to people, it's interesting that most of the brokers tell me I'll most likely end up using the same company (jbr) anyway.There offer has been the best so far but that was unregulated I believe so need to understand the risks of that a bit more.