The allure and mystique of the most prestigious marques are undisputed.
However, finding ways to fund that supercar purchase may need a little thought and some specialist advice.
Let’s assume that, for whatever reasons, you do not wish to consider purchasing a vehicle outright using your own capital reserves.
In that scenario, which is the most commonplace one, you’re going to need some form of assistance from a provider of super car finance.
At the risk of generalising, many standard car finance providers may balk at the prospect of funding a Bugatti, Lamborghini, Porsche or Aston Martin etc. The most likely reason for that would be the sums involved in a single vehicle and their perception of the risks associated with lending of that magnitude.
So, at the outset, it will perhaps be necessary to presume that you are going to need to find a specialist. Typically, such specialists fall into one of two categories:
Theoretically, you may be able to approach a bank for a standard vehicle acquisition loan but in today’s tighter bank lending environment, you may find that it is difficult to source a bank loan for what is clearly such a luxury item.
There isn’t any reason why you should not objectively consider this option. Many dealers specialising in vehicles of this type will have developed their own funding sources in recognition of the fact that it is such a highly specialised marketplace.
There may though be an understandable slight reluctance for some purchasers to mix the business of negotiating a deal for the purchase of the vehicle with looking for finance. It may be debatable but for some, such mixing might be a case of reducing the scope for driving a hard bargain.
True, some of the very rarest and particularly classic supercars may be in such demand that there is little scope for price negotiation but that is far from the case with every vehicle in this category.
So, if you wish to keep your negotiating position entirely uncluttered by other issues, you may wish to consider independent super car finance providers.
There are specialist providers in this category. In many respects, your application position may not be any different to someone purchasing a standard family saloon.
There may be some minor variations on some of these points, depending upon the exact finance mechanism you select.
Where supercars are concerned, most specialist providers will have a range of different options available. They might include:
Given the sums involved, it is only to be expected that people providing super car finance will inevitably pay particularly close attention to your credit history scoring.
Some forms of minor problems or even more significant issues in the past are unlikely to be showstoppers. Even if such problems are more recent, it may still be possible to secure finance – although the assistance of a specialist intermediary might be required.
The funds provider may require you to meet certain conditions relating to things such as where and how the vehicle is used, maximum mileages, where it is parked when not in use and the security systems that must be fitted to it.
There may be a relationship here between their requirements and those of your provider of supercar insurance.
Do remember that if you are operating some form of hire or lease purchase agreement, typically the vehicle will not be your full legal property until you have completed all the agreed repayments against it. As such, it would be illegal for you to sell or to otherwise dispose of the car unless you had the finance provider’s written agreement in advance.
Although there is hardly any such thing as a standard supercar, nevertheless, there will typically be a manufacturer’s specification for the vehicle.
Both in terms of your insurance and finance commitments, you should not significantly customise or otherwise modify the vehicle without getting the prior agreement of both parties.
In cases where the vehicle is already highly customised or it is a bespoke build at the time of purchase, it may require a little more effort to find finance, as some lenders may become more reluctant when the vehicle cannot easily be placed within a standard market specification.
Once again, if you are considering such a vehicle, you may need professional assistance in terms of finding your super car finance.