Loving performance cars or indeed an individual example of the class is one thing – being able to finance it is sometimes quite another.
Financing classes of car
In fact, finding appropriate funding isn’t just a challenge for performance vehicles. It might also be something that could cause you some issues if you’re contemplating the purchase of:
- an antique vehicle;
- a classic car;
- a vehicle for restoration;
In other words, for some lenders, anything out of the ordinary might well generate uncertainty and that in turn might mean they’ll be reluctant to advance finance. Even if they do, you may find their rates are not particularly attractive.
By contrast, we at ACF Direct might be able to source performance car finance or similar for some of the above special category vehicles.
Affordability and lending
Of course, we understand that finding funding isn’t the same thing as deciding whether or not you can really afford the vehicle you have set your heart on. That must be your decision.
Our financing for supercars and top-end high performance vehicles is based around the familiar and long-established Hire Purchase (HP) agreement. In a typical case, it will work something along the lines of:
- you will identify the vehicle you’re interested in and decide upon the price you think would be right – in principle. Remember that if you have your own funding available, you may be in a better position to drive a hard bargain with the seller;
- you then contact us for funding propositions. Typically, you’ll need to show that you have a minimum of around 10% of the price available as your own deposit contribution;
- the vehicle’s price will be compared, along with its age and mileages (etc.) to industry standard databases to ensure that it’s about correct in terms of valuations;
- there will be some consideration of your overall financial position, including credit history checks. Note that having a few credit history issues on your record is not necessarily a showstopper – such things are far from unusual;
- assuming all is well, the funding will be approved and the vehicle may be purchased.
In some cases, it might be possible to undertake some of the early stages of this process in advance, in order to position you as being essentially pre-approved for a loan.
That might mean you can look around at a number of vehicle options in general terms, safe in the knowledge that the funding is already approved, in principle, subject to a check on the specific vehicle concerned.
Implications of an HP agreement
Once all is completed, you will be the registered keeper of the vehicle but the lender will be the legal owner until such time as the final payment against the HP schedule has been made. That’s usually anything from one to five years – depending upon your requirements relating to the repayment schedule and therefore the term of the agreement.
You are free to use the vehicle as your own but you cannot legally sell it. The terms of the HP financing might typically also require you to meet certain other conditions relating to insurance provisions, security, maintenance and the lending of the vehicle to others.
Unlike some lenders, we are not frightened by the concept of a performance car or any of the other vehicle categories outlined above.
That’s why we’re confident that our service in this area might make it possible for you to get the car that you’ve always wanted.
Why not contact us now for an initial and totally non-committal discussion on our performance car finance options?