Purchasing a new sports car is a significant investment, in rare circumstances it makes sense to purchase the car outright, but most of the time financing the purchase makes much better use of your capital, especially with finance rates so low.
Even if you have the money to purchase your new sports car outright, financing gives you the flexibility to put your money where it will generate the best return. For example, it would be financially prudent to invest the money you would otherwise be spending on a sports car in the bond market, this capital is then guaranteed a return over time, which will help cover the interest and depreciation of your new sports car.
No matter your financial circumstances, there are a range of packages to suit your personal requirements. Tailored finance plans can be both tax efficient and flexible, providing you with a cost effective way to purchase the car of your dreams.
We provide the following finance options to purchase your new sports car:
Good old fashioned hire purchase is the most popular way to finance a new car. You simply spread the cost of your new car over a fixed term, typically between two and five years. Finance rates are flexible and you can reduce the amount you pay each month by increasing your deposit or extending the length of the loan agreement.
A lease purchase is similar to a hire purchase agreement, but you can defer a large amount of the loan until the end of the agreement, this is known as a balloon payment. When your agreement has come to an end you can either pay the balloon payment and own the car outright or part exchange it for another vehicle. The advantage of a lease purchase is that it keeps your monthly payments lower, allowing you to spend more on the car.
Personal contract purchase
A personal contract purchase or PCP is similar to a lease purchase plan, in that you agree to defer an amount until the end of the agreement. The difference is a guaranteed future value is agreed upfront based on the length of the agreement and your annual mileage. When the loan term comes to an end you have the option to pay the final value and own the car outright or trade it in for another model. PCPs give added peace of mind against unexpected depreciation and allow lower deposits and monthly payments.
For more information, give our finance team a call on 01494 812115 and we’ll discuss the most financially prudent way to finance your new sports car.