Borrowed elsewhere? Now is the time to check your agreement.

Borrowed elsewhere? Now is the time to check your agreement.
22nd June 2020 admin_csf
Classic Sport & Finance Borrowed Elsewhere? Now ois the Time to Check Your Agreement

Borrowed elsewhere? Now is the time to check your agreement.

The past few months have naturally encouraged many of us to look at the structure of our financial commitments and obligations. The various government schemes and consumer support by way of payment holidays, seem to have been a powerful tool in at least managing the current situation and planning for what could be an uncertain future. There has been amazing innovation as firms alter their business models to stay afloat and remain agile, while individuals review their current commitments by restructuring or consolidating their debt. We have thankfully been able to assist in all aspects of this where we have been asked to.

The past few months have naturally encouraged many of us to look at the structure of our financial commitments and obligations. The various government schemes and consumer support by way of payment holidays, seem to have been a powerful tool in at least managing the current situation and planning for what could be an uncertain future. There has been amazing innovation as firms alter their business models to stay afloat and remain agile, while individuals review their current commitments by restructuring or consolidating their debt. We have thankfully been able to assist in all aspects of this where we have been asked to.

One key area I want to re visit though is where you may have an agreement with another lender, either through a broker or directly from a dealer. You could have a balloon payment due, be unsure whether your agreement is Regulated or Unregulated (it matters if you want to settle early), or you are on a variable rate agreement. There might just be a better way of restructuring and or consolidating your loans, so discuss your situation with us to see if we can help.

If you would like to explore balloon refinance, capital release or discuss your market options, call us for an open chat.

The landscape of motor and asset finance looks like it is once again shifting with accents of the markets of ten years ago but from a different perspective. The impact to lenders being asked by Government to offer payment holidays, is undoubtedly going to have an impact on the future availability of credit. In fact, we have already seen some of our credit line panel pause from lending, to redirect resources towards the administration of forbearance claims.

So here’s the rub – motor dealers are now able to open their showrooms and need to sell cars but will the lack of available credit inhibit their recovery? Manufacturers of new cars will have to be very creative with the packages to entice the general public back on to the forecourt, but where this support will come from, we are yet to see.

As always, be careful what you sign up to as nothing is ever free in life and however you dress a loan up, it always has to be repaid in full. We are here to guide and protect you, with any questions relating to a finance quotation or offer you have been made. Check it or live with it!

Consolidation Loans – Case Study

An area where we are currently active, is the consolidation of multiple loans on to one document. Ideal if you have a collection of cars bought over time placed on separate agreements at varying levels of payments per month. Provided the loan to value is suitable, we can potentially bundle the cars together and often significantly reduce your monthly outgoings.

Recently completed:

Porsche 930 Turbo – £1135.48 per month
Porsche 911 Carrera Sport – £822.85 per month
Porsche 2.7 Carrera Targa – £1453.08 per month
Porsche 914-6 GT – £1141.61 per month

Total of £4553.02 per month

By consolidating four separate loans onto one agreement held against an unencumbered Ferrari 365 GT4, the accumulative monthly payment was reduced to £2,100 – an improvement of £2453.02 per month on a Regulated HP agreement with total flexibility.

Remember – Regulated Agreements offer total flexibility and fixed interest rates!