Buy­ers be­ware of ‘dodgy fi­nance’

Classic Car Weekly (UK) - - This Week - clas­si­can­d­sports­fi­

Clas­sic car fi­nance spe­cial­ists are warn­ing en­thu­si­asts to be wary of fi­nance deals on high-end clas­sics that look too good to be true.

Clas­sics and Sport Fi­nance manag­ing di­rec­tor Rob Johnson says he has seen more bro­kers at­tracted to the mar­ket in the past three years as cus­tomers bor­row money to buy clas­sics.

Johnson says: ‘Cus­tomers have come to me to help them re­fi­nance their clas­sic af­ter they were sold a deal which left them with 65 per cent of the cost of their ve­hi­cle left to pay at the end of their fi­nance term.’

JBR Cap­i­tal, a clas­sic car fi­nance spe­cial­ist and the of­fi­cial fi­nance part­ner for McLaren, also ad­vised buy­ers to steer clear of ‘too good to be true’ deals un­less they are con­fi­dent that they can af­ford to cover any short­falls on the fi­nance.

Dar­ren Selig, JBR Cap­i­tal chief ex­ec­u­tive, says: ‘If the pur­chase is for pure en­joy­ment then buy­ers should work on the ba­sis of a min­i­mum 15 per cent year-on-year de­pre­ci­a­tion and if it’s an in­vest­ment pur­chase then the buyer should be aware that in­vest­ments may fall in value as well as go up.’

Richard Bar­nett, CCW’s mar­kets ed­i­tor, said that even if fi­nance makes it pos­si­ble to get into a dream clas­sic, the de­posit and monthly price on fi­nance is just the start of the story. He says: ‘When you buy some­thing high end, that’s not the end of it – there’s up­keep and all the costs that go with it.’

CCW con­tacted the Fi­nance and Leas­ing As­so­ci­a­tion (FLA) about the growth in clas­sic car fi­nance but a spokesper­son said they did not col­lect data on the type of ve­hi­cles fi­nanced and was un­will­ing to com­ment fur­ther.

Fi­nance of high-end clas­sics have in­creased by up to 27 per cent since 2015, ac­cord­ing tp pawn bro­ker, HNW lend­ing.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.