Higher prices, low rates...
As the prices of many (though by no means all) classics have increased, and interest rates remain at historic lows, the number of acquisitions funded on finance has risen.
Brokers have been advertising their services in auction catalogues for some time now and their reps have been discreetly attending sales, while retrospective Hire Purchase has been possible to pay for cars knocked down to bidders who prefer to use other people’s money rather than their own.
For now, Historics at Brooklands has become officially authorised and regulated by the Financial Conduct Authority to offer consumer credit in partnership with Classic & Sports Finance, so that, subject to acceptance checks, punters can bid away safe in the knowledge that they have a pre-arranged finance agreement.
Even more like the trad trade, where virtually all new and most used motors are bought on the drip, a new-fangled web-based interactive finance calculator, embedded with every auction consignment listing in Historics on-line catalogue at www. historics.co.uk, enables those interested to configure a package that suits their pocket and repayment time scale.
It is anticipated that most credit-equipped buyers will opt for an HP agreement on a fixed rate of interest, although other creative solutions are available.
While gratification may well be relatively instant for those who buy classics on the tick, they will, of course, have paid considerably more for their toys by end of term. If the finance trend does catch on, the prices of all £10k+ classics will almost certainly rise in sympathy. Only a return to a softer market will frighten away the bulls.
‘Most credit buyers will opt for an HP agreement with fixed interest’
Historics at Brooklands now offers credit on cars up for auction.
Market commentary from our man in the thick of the sales RICHARD HUDSON-EVANS