Higher prices, low rates...

Classic Car Weekly (UK) - - Buying & Selling -

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

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