Can you help me refinance my classic car collection?
In this real-life transcript, a customer got in touch to ask a specific question about refinancing his classic car collection in order to repay a mortgage on an overseas property. We’ve removed names and key details, but this is how the conversation went…
JBR Capital
Hi, thanks for getting in touch. Would you like to discuss your finance options with one of our experts? We can tailor a quote just for you.
Customer
I have a classic car collection with a value of around £400k but will need some form of finance to repay a mortgage on an overseas property which matures in early 2020.
JBR Capital
OK, this sounds like something we can help with. It’s an area of funding that we’ve looked at closely recently. There would be a few basic points to consider, but in general terms we could lend up to 70% of the value of the collection.
Customer
On what sort of basis and rate are we looking at?
JBR Capital
There are a number of options – for instance, we could look at a 24 month-term and interest-only.
Customer
What would the interest rate be?
JBR Capital
This will depend on credit profile, but we’ll do what we can to keep the rate competitive.
Customer
Would the repayments be only interest per month or capital and interest each month?
JBR Capital
We can look at both options for you, that’s no problem.
Customer
Is it a fixed term or can it be terminated early?
JBR Capital
Yes, there are certain fees involved but you can terminate early.
Customer
I could either bulk up the cars in total or to select some of the higher value cars individually. Would you do it on a car-by-car basis or as a total package?
JBR Capital
That’s a fair question – this often comes up when it comes to financing a collection. We tend to say that it really depends on how much you would like to borrow – or whatever gets us to required amount.
Customer
To settle the mortgage I was thinking that two of the cars would make £200k – which should be sufficient. One is a Sunbeam Tiger, the other is a rare vintage – valued at over £100k, and another is a Fiat Dino Spider.
JBR Capital
Wow! All fantastic cars. Have to say, the best thing about this job is talking to owners about their cars or collections – the variety out there is amazing. Dino Spiders I think are underrated – lovely things. If you are looking for a loan of £200k, we would probably need assets totaling around £285k as security. This gives us a loan-to-value of 70%.
Customer
Okay. I could throw in a fully restored Jaguar E type roadster valued about £85k.
JBR Capital
Wow, another gem. Are all the vehicles unencumbered?
Customer
Yes.
JBR Capital
Ok great. Would you like to get an approval in place? You do not have to draw off the facility, but it will be valid for three months should you need it.
Customer
Yes, but let me leave it for another six weeks or so. The overseas house in on the market and if it’s not sold by then I will need to put Plan B into operation.
JBR Capital
Understood! I have dropped you an email with my details – thanks for getting in touch and if there’s anything we can help in the meantime, just shout.
Customer
Great. Thanks for your help.
JBR Capital
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*The figures shown are purely for illustrative purposes. For your personalised rate please give our team a call on 020 3603 0074 – you may discover savings beyond those shown by the examples.
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