Prestige cars can be expensive, but if you’re in the market for one and want to spread the cost throughout a few months, then car finance may be able to help you to have the luxury vehicle of your dreams.

So, whether you’re looking to keep the car forever, or simply enjoy the luxury of an upscale vehicle for a while, car finance can help you achieve your dream car.

Can I get car finance for prestige cars and if so how?

Yes – you can get car finance for prestige cars, including the two most popular types of car finance –  hire purchase (HP) and personal contract purchase (pcp).

You typically will start with an online application with your car finance broker of choice, and include information such as the car you want and for how long as well as personal details.

If your application is successful, you’ll pay a deposit – usually around 10% of the car’s price and pay the rest over time. This will be an agreement between you and the lender, so it’s important to keep up to date with payments as you won’t own the car at this moment in time.

What do I need to get prestige car finance?

To get any sort of car finance, there will be some details and documentation you’ll need to provide. This will include both personal and financial details to help your broker find you a suitable lender, andfurther helps the lender to work with you to create a repayment plan.

Personal details include:

  • Proof of address
  • Employment history
  • Proof of ID (passport or driving license)

Financial details include:

  • Bank statements
  • Potential tax information if self employed

There will also be a credit search conducted on you by both the broker and lender. It is likely that the broker’s credit search will be soft and will not leave a mark, however a lender will most probably conduct a hard credit search which will show on your credit file.

How can I increase my chances of approval?

The best way to increase your chances of approval is to ensure your credit score is the best it can be. Improving this could include things like paying off some debts before applying for car finance, ensuring your bills are paid on time, and using credit boosters such as Experian Boost to increase your credit score.

If you feel that you’re unable to do these things, or that your credit score will remain in a low number, you can apply using a guarantor. Guarantors are usually a friend or family member who agrees to take responsibility for your debt if you default on payments. Both you and the guarantor will legally be responsible for the loan, and if payments are missed, then you may face legal action.

What finance option is best for me?

Deciding which finance option is best for you depends on what you’re looking for at the end of the financial agreement.

The structure of finance is typically the same for each option, you pay a deposit worth around 10% of the cars price and then continue with monthly payments over a agreed amount of time with the lender. It’s important to note that you don’t own the car whilst making these payments.

If you do want to own the car, then your choice is simple, you can take out a hire purchase (HP) agreement and own the car at the end of your agreement. If you want immediate ownership, then you could get a bank loan, but as this is an unsecured loan, it can be difficult to obtain.

A personal contract purchase is for those who either don’t want to keep their car or are unsure if they want to keep it. A PCP agreement follows a similar structure to a HP agreement, only at the end you have three options: keep the car and pay a lump sum, trade it in for a new model, or return it to the dealership.

What if I miss a payment?

Whist in your finance agreement the lender owns the car, that means even if you go with a HP contract you still won’t own the car until the end of the agreement.

The only exception to this is a personal loan from the bank, where you’d take a loan out and use it to buy your car. You would own the car as soon as you pay for it in this instance and would make repayments to the bank. However, these can be difficult to get as they’re unsecured loans – meaning there is no asset tied to the loan for the bank to repossess if you fail to make payments.

If you miss payments whilst in a finance agreement, it will be noted on your credit file which may impact your chances of getting finance in future. The vehicle may be repossessed from you by the finance company and if necessary the lender may take you to court.

Where can I get prestige car finance?

You can find prestige car finance at brokers throughout the UK, including carmoney.co.uk. CarMoney is one of the fastest-growing UK finance brokers helping to find thousands of people car finance each year, helping them to get on the road with their dream car.

Car finance can help you too, if you know what you want and what outcome you’re looking for at the end of your agreement, then apply online today and get your new car as soon as tomorrow.