Loans offered on estimates
H&H Classics’ Donington Park auction will allow buyers to finance most of the estimated value of a car for the first time on 24 February.
Peer-to-peer lending company Unbolted will be offering immediately to lend (post auction) 70% of the hammer price, or of the high estimate to UK buyers at H&H Classics’ auctions.
The supply agreement with the company creates a sale advance facility allowing asset-rich buyers to move quickly on opportunities rather than spend time negotiating credit facilities with banks. The ‘buy now pay later’ loan can be for up to six months, with no credit check for buyers as the loan is secured against the vehicle.
Mark Magnacca, chief marketing officer of Unbolted explains: ‘We effectively lend against the car and as long as the individual is a UK resident with a UK bank account, there is no credit check whatsoever. The valuation will determine the amount the seller receives – somewhere between 50% and 70%, independent of the individual’s financial situation. When the car is sold, the loan will be deducted from the proceeds.’
Mark adds: ‘If a buyer saw a car for £60,000 Unbolted will then provide a loan of 70% or £42,000 at 1.5% per month or £630. If they kept the loan for exactly six months he would pay £3780. Of course, they could pay it off after seven days and only pay for seven days interest.’
Nick Delaney, business development manager of H&H Classics adds: ‘Removing unnecessary barriers is part of the process to make it easier for our clients to do business.’