Prestige vehicle finance FAQs

What marks out a prestige car? If you had to choose a single distinguishing feature, that is likely to be the price-tag that comes with it.

With a price that is typically somewhat higher than any run of the mill vehicle, you may need to look for a specialist provider of prestige vehicle finance – not only to secure the amount of credit you are likely to need but for that extra degree of customer care, attention and understanding that the commitment involves.

So, here are some of the most frequently asked questions on the subject.

How much can I borrow?

Prestige cars tend to be in a class of their own – and you may need deeper pockets than most for the privilege of owning one.

In terms of borrowing for that prized possession, therefore, the sky might be the limit – and specialist providers may typically offer lines of credit starting at, say, £15,000 but going right up to £3 million.

How much deposit do I need?

Although an initial deposit is going to be required however you decide to finance the purchase of your prestige car, there is no hard and fast rule on the amount you may need.

In broad terms, you might think along the lines of 10% of the purchase price, but some forms of finance may require none at all.

If there is one golden rule, though, it is that the bigger your deposit, the less you need to borrow, the more likely you are to succeed in getting the finance you require, and that may mean the difference between getting the prestige car you really want and one on which you’ve had to compromise, warned Car magazine on the 21st of February 2019.

What types of borrowing might I consider?

Different providers may offer different types of credit for the purchase of your prestige car, but the most common you are likely to encounter include:

Hire purchase

  • Familiar to most people, a hire purchase agreement typically involves the payment of a deposit, followed by equal monthly instalment until you have paid the total purchase price of the vehicle – the final instalment may or may not include a balloon payment;

Lease purchase

  • just as the name suggests, this involves a combination of leasing your car, until you make a final payment representing its value at that time, when you complete the purchase;

Personal Contract Purchase (PCP)

  • PCPs have become probably the most popular form of car finance – largely because of the freedom and flexibility they offer;
  • once again, an initial deposit is required, and this is followed by equal monthly instalments that effectively represent the cost of leasing the vehicle;
  • at the end of the PCP, you may pay its current Guaranteed Minimum Value, return the car to the lender and pay nothing more, or arrange the sale of the vehicle, with any equity you own in it used to make a down payment on another new prestige car;
  • PCPs, therefore, offer you an opportunity to continuously drive a new or nearly new prestige car all of the time.

What if I haven’t yet found the prestige car I want?

Even if you haven’t yet found the prestige car you want to buy, some lenders are able to arrange the necessary finance – which you may keep in your bank, ready to seize the opportunity for an immediate purchase when the right deal comes along.

Alternatively, some lenders may even offer a prestige car sourcing service, where they scour the deals currently on offer from a wide network of approved dealers on your behalf to find the vehicle that suits you.

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