Ultimate Car Finance Guide

In life, we all have dreams. If you’re anything like us, then at least one of those dreams involves owning a prestige car of some kind. Sleek, sexy, gorgeous machines with nothing but power and luxury seeping out of them—who wouldn’t want that at their fingertips? 

So, what stops this dream from becoming a reality? If the answer is money, then this is where Magnitude Car Finance can help. We have a wide range of affordable finance deals and products that can perfectly meet your personal needs. With our expert guidance, your dream can be a reality. 

So, if you’re interested in financing a luxury vehicle, this guide is made for you. We’ll cover:

• History of luxury cars.
• What’s the process with Magnitude Car Finance?
• What is car finance – and how can it help you get your dream car?
• Getting your car finance started
• Interested in financing a prestige vehicle? Here’s what you should know.
• What kind of vehicles can I finance?
• I’m worried about bad credit – what can I do?
• Luxury car glossary.
• How to buy a supercar: your questions, answered. 
• What is a good credit score for car finance?
• Financing your supercar with Magnitude. 

History of luxury cars

The luxury car market began at the start of the car industry itself, when wealthy people often invested in luxury and custom-built motors to gain prestige within society. This happened both in Europe and North America, where the car industry began to blossom at roughly the same time. 

Europe

Before the Second World War, there were a wide array of European car producers that were making luxury cars. These included Rolls-Royce, Bugatti, Talbot-Lago, Delahaye, Delage, Alvis, Bentley, Isotta Fraschini, Avions Voisin, Horch, Stoewer, Simson, Maybach, Mercedes-Benz, Hispano Suiza, Spyker, and Daimler Company. Many of these cars were produced in France, which was leading the world in prestige car manufacturing at the time. 

However, after the Second World War, this changed. The French government used puissance fiscal tax regulations to encourage French manufacturers to build cars with small engines that could be easily available to the French public. Also, certain intermediate car manufacturers such as Fiat, Opel, Renault and Peugeot, who had been making luxury cars prior to the war, began making economy brands to help generate sales and ensure more people could drive. 

As France became less important in the car manufacturing world, Germany rose to prominence in the luxury car market, with Mercedes-Benz and BMW both being produced there. BMW bought Rolls-Royce in the late eighties, adding an extra level of luxury to their repertoire. Germany is also home to Volkswagen, which now controls Audi, Porsche, Bentley, Lamborghini, and Bugatti.  

In the 1960s, the supercar was effectively born, with Lamborghini, Porsche, and Ferrari dominating the market. These were predominantly made popular by the rise of motor racing and Formula 1. 

America

In America, the 1920s and 1930s were key to the prestige car industry. Manufacturers like Auburn, Cadillac, Chrysler, Continental, Duesenberg, Franklin, Cord, Daniels, LaFayette, LaSalle, Lincoln, Packard, Arrow, Ruxton, and Stearns-Knight were thriving during this time. Sadly, though, the Great Depression had a negative impact on many of these brands, with many of them going bankrupt. 

In 1949, General Motors made its first muscle car when it put its 303-cubic-inch Rocket V8 into a small and light car called the Oldsmobile 88.

Between the mid-forties and the late nineties, Cadillac was the top-selling prestige brand in America, followed by Lincoln. 

Asia

In Asia, the first luxury car was made by Hongqi in 1958. However, Japan is without a doubt the unrivalled luxury car manufacturer in Asia nowadays; the Toyota Crown, Nissan Cedric, Honda Legend, Mazda Luce, and Toyota Century have all proven Japan’s ability to produce prestige cars with ease. Furthermore, some brands have actually created sub-brands specifically for luxury cars. These include Lexus (Toyota), Infiniti (Nissan), Acura (Honda) and Genesis (Hyundai). 

Getting your car finance started

A luxury car is a thing of beauty. From the smell of its fine interior to the comfort of the seats, it will hook you even before you turn its engine on. And what an engine it’s got! Many of these mechanical wonders possess V8 or V12 engines, making them built for speed and agility. The moment you get going, you can hear that familiar roar that most of us know and love. 

Then there is the way a luxury car looks. There are many different types of prestige cars on the market, including Audi, Ferrari, Lexus, and Porsche, to name but a few. These cars all have their own style and grace, and their distinctive looks totally ooze charisma. Whether it’s a classic Rolls-Royce from a bygone era or the latest Lamborghini, you can expect to turn heads as you drive down the road. 

Basically, a luxury car is not just a car, it’s an experience. 

For a few of us that are very lucky, that experience is something we can afford outright. Let’s be honest though, for many of us, it’s just out of reach. We want it so badly but it remains a dream because our finances won’t allow it to become a reality. This is where car financing comes in.

Financing a car has become one of the most popular options for car buyers because it enables them to buy a bigger, better model of car that goes beyond their financial capabilities. 

A finance deal spreads the cost out for them so that they don’t need to find a huge lump sum in one go. Furthermore, many drivers find that they can trade in their old models or part-exchange once finished, which is ideal for those who plan to drive a lot. Depending on the deal you have, financing your car may even make it cheaper to run.

Car finance is particularly useful and attractive in the prestige car market, where high-end models can have hefty price tags. It makes these cars within your reach and gives you access to the experience you yearn for. Furthermore, because finance deals are discrete in nature, nobody has to know you haven’t bought this work of art outright, making you the envy of all those around you.  

What’s the process with Magnitude Car Finance?

Magnitude Car Finance is one of the best prestige car financing specialists in the business. We have thirty years of experience in the market and over this time we have built up excellent relationships with both retailers and lenders, making your car buying experience easy and smooth. 

Our independent status and the fact that we have access to over twenty different lenders—many of which are UK banks offering exclusive products for cars worth over £25,000—means we can easily meet your individual needs and preferences. 

We like to get to know our customers well so that we can have a good idea of what they need both now and in the future, ensuring that we continue to deliver excellent service at all times.  We will never redirect you to a call centre; you will always have easy access to one of our specialist concierge teams and we are happy to hear from you or see you face-to-face at any time. 

Our financial products include:

• PCP (Personal Contract Purchase)
• Hire Purchase
• Hire Purchase with Balloon
• Balanced Payments

All of these options come with their own advantages and some may be better suited to you than others. By getting to know you well, we can decide what will work best for you and how to tailor the chosen product to your needs.

We can offer competitive rates, a wide choice of agreements and lenders, and access to expert advice, making us a highly attractive option in the industry. 

If you are interested in knowing more about financing a car or the types of cars available, then Magnitude Finance’s Car Finance Academy gives you an excellent insight into the finance market today, and our tips on car finance are also another essential read.

To learn more about what Magnitude can do for you, skip ahead to our finance section below.

What is car finance – and how can it help you get your dream car?  

Getting any new car—luxury or otherwise—can be a stressful time. For a regular car, we look at things like will it get me to work on time, can I fit the kids in it, is it practical, and will my spouse like it. For a luxury car, many other things go through our head—what engine does it have, what speed can it achieve, how does it look, who will it impress, what status comes with it, and so on. 

However, there is one question that will normally feature highly on the stress scale, regardless of what kind of car you’re buying: How do I pay for it? Naturally, with a prestige car, where prices are much higher than your average saloon, this question can be a particularly persistent one. 

This is where car finance comes in. It helps to mitigate the huge outlay that comes with buying a luxury car all at once. With a clear monthly plan, you can easily see what you’re paying and when each payment is due, enabling you to budget much easier and allow for the outlay each time. Furthermore, you don’t have to completely wipe out your savings in order to own the vehicle of your dreams. 

Stretching out the cost over time makes buying your supercar, hypercar, luxury marque or classic so much easier and attainable. Such a deal enables you to pay as you earn and also allows you to take into account the agreed payment each month, meaning you’re unlikely to feel the pinch. 

Benefits of car financing

Car financing has many other benefits too. For example, it normally allows you to buy a better type of car because you’re spreading the payment rather than trying to find it as a lump sum. An enormous amount of luxury car marques can be bought using a car financing plan. These include Ferrari, Lamborghini, Audi, Lotus, Porsche, Tesla, Rolls-Royce, Jaguar, Toyota, McLaren, and Mercedes-Benz. This means that whatever car you dream of owning can be yours by financing it. 

Depending on your financial situation, car financing can also open up the possibility of owning a rare car or a limited edition model, adding to the prestige and status that the car commands. Some finance deals come with insurance included too, meaning there’s one less thing for you to worry about.

A key attraction is that, unlike a bank loan, you can often get car finance even if you have bad credit, as the loan is taken out against the car itself. There are normally no hidden costs squirrelled away out of sight, and repayments are fixed and pre-agreed, meaning you don’t have to worry about unwanted surprises on your bank statement.  

Another massive attraction when it comes to financing your car is that there are so many finance packages available. Many of these can be tailor-made to meet your needs, ensuring that you get the best deal possible. 

Due to all these factors, car finance is considered a practical way of owning the car of your dreams without getting into debt. It is relatively risk free and gets you a much better model of car than you could have otherwise afforded.

At Magnitude Car Finance, we pride ourselves on offering very flexible, bespoke plans to meet our customers’ needs. We can work closely with you to find out what works best for you, ensuring that you never find yourself in too deep. Our expert concierge team will help you identify which of our finance plans works best for you and will work with you every step of the way to ensure you get the best possible deal.

What finance products can I get with Magnitude Car Finance? 

At Magnitude Car Finance, we are as passionate about prestige cars as you are. We know what motivates you to want that elegant Mercedes or that bold new Lamborghini. We share your need for class, style and speed, and just like you, that bellow of a V8 or V12 engine gives us goosebumps. 

We know that second-best just isn’t going to cut it when it comes to getting that car you’ve always wanted. After all, lifelong ambitions don’t get sated by getting a car that’s almost the right one.  

It’s this understanding that drives us to secure you the best deal and the best package. We will work closely with you to ensure you get that classic Ferrari or that brand-new Tesla. Whether you want a more practical Mercedes-Benz or a super-fast limited-edition Lamborghini, we will work out the best way for you to get behind its wheel. 

We will carefully listen to your needs and your financial circumstances, using our expertise to recommend the best finance plans available. If there isn’t a plan available off-the-peg, then we will create one for you, taking into account all that you’ve told us. 

Our thirty years of experience in the industry means that we can create the perfect bespoke finance plan for you and work with you to ensure your satisfaction. Magnitude Finance has an excellent client satisfaction record, meaning you can rely on us. 

We have an experienced concierge team that has a long history of securing the right cars for our clients, having helped thousands to secure their dream car. Our team are full of expert advice and can search out the best deals with ease, utilising our access to over 20 lenders across the finance market. This enables us to create made-to-measure packages with flexible funding to suit your needs. 

With a financial package from Magnitude, you can achieve so much more. You can not only buy a luxury car, but you can buy the car you’ve always dreamed about. The one you had a poster of when you were young. The one you’ve always spoken about with your friends. With one of our financial products, listed below, the world is your oyster when it comes to prestige car ownership.

Magnitude’s financial products include:

Hire Purchase Finance 

When it comes to finding a Hire Purchase agreement that suits you, then Magnitude Car Finance will be there to help you every step of the way. We can tailor packages to make them perfect for you, ensuring you can get your hands on that prestige car that you’ve wanted all your life.

Hire Purchase agreements are very popular when it comes to securing a luxury car, whether it be an exotic model, a classic or a hypercar. The reason for this? A Hire Purchase agreement is one of the easiest ways to secure a prestige car: you simply make set payments over an agreed period of time and then once you have made all the payments, the car will be yours. 

Depending on the plan you’re on, the length of time it takes to complete all payments and the monthly payment price itself can often be agreed upon according to your needs. Its simplicity makes it perfect for so many people.  It’s also ideal for ensuring you can stay within your budget, as you know how much will be coming out of your bank each month. 

Hire Purchase with Balloon 

Hire Purchase finance deals with a Balloon are similar to your regular Hire Purchase agreements. The difference lies at the end of the agreement, where there is a ‘Balloon payment’—a one-off larger payment to clear the final amount. By using a Hire Purchase with Balloon agreement, you can lower your monthly payments and can potentially get extra flexibility. The balloon payment is a set sum that is agreed upon in advance and that gets paid at the end of the contract.

Magnitude has been helping drivers buy the luxury car of their dreams using this type of agreement for decades, and you could be one of them. 

Balanced Payments 

Balanced Payment car financing combines several factors into one financial product and gives you a fixed monthly payment. This means that you can plan the rest of your finances easier because you know the exact amount coming out of your bank each month.  A Balanced Payment plan is a very competitive option and is perfect for people with investment experience that already understand a lot of the risks that can be involved. 

With a Balanced Payment plan, there is often only a low deposit, which works well with the set monthly payment to give you extra budgeting ability. 

If you are a more sophisticated and experienced investor, a Balanced Payment plan could definitely be an option suited to you. 

Personal Contract Purchase 

A Personal Contract Purchase (PCP) is a very popular way to broker a finance agreement on a prestige car. This option is cost-effective and allows you to make flexible deposit contributions, making it a great way to lease a vehicle. In addition to this, it offers you three options at the end of your contract—you can keep the car, trade it in, or return it. 

Built upon a traditional Hire Purchase agreement, the biggest difference between both options is the value of the vehicle, which is decided at the start of the contract and then deferred until the end. 

This price is worked out using a wide range of factors, including starting mileage, annual mileage limit as estimated by you, and the car’s age. It is important to remember that unless you agree to pay this price at the end of the contract, the vehicle will not be yours. Also, as this is a form of leasing, exceeding any limits or altering anything without prior consent could result in additional charges.  

A PCP finance agreement normally starts with you paying between 10–30% deposit. You will then pay off the rest of the money in pre-agreed payments.

Regardless of which Magnitude financial product you choose, it can be styled to meet your needs. Furthermore, the sky’s the limit when it comes to the luxury marques you can own.  

Magnitude Car Finance can secure you a classic model, a rare gem, a limited-edition, or the newest model. Whether you are desperate for the newest Lotus Evija hypercar or that exquisite classic Rolls-Royce Silver Shadow, we can have you sitting in one before you know it.

Interested in financing a prestige vehicle? Here’s what you should know.

Prestige vehicles are in a league of their own. These aren’t just cars. These are beautifully honed pieces of engineering that have been perfected over decades and decades by the best designers and brands in the industry. 

Cars that come off a production line can’t possess this level of style, power, charisma and charm; it takes love and passion to create that. It’s for these reasons that the prestige car remains the passion of all car lovers everywhere. It is also why such cars come with the status and admiration with which we are familiar. As such, it only makes sense to want to own one of these majestic vehicles. 

But if you’re thinking about financing your car, it’s only natural to have questions. Here, we try to answer some of those. 

What kind of vehicles can I finance? 

With Magnitude Car Finance, it is possible to get a wide range of marques and models that are available on the prestige car market today.  We offer finance options for many supercars, luxury vehicles, and high-performance sports cars, meaning that nearly any brand of luxury car can literally be at your fingertips. If you want to see more information on how to finance specific prestige cars with us, please try visiting one of these pages: Lotus, Ferrari, Porsche, Tesla, Rolls-Royce, Jaguar, Lamborghini, McLaren, Mercedes Benz, Polestar, Range Rover, Toyota. 

This enormous choice of prestige vehicles means that there is little standing in your way of owning the car that meets your needs. If you want the practicality of a daily driver that can carry your kids to school and that can tackle snow and ice, then you might be ecstatic to own a brand new Range Rover. Want to own a classic car that’s instantly recognisable? Then maybe you want to reach for the keys of a Lotus Elan or a Porsche 356 GT Coupé. 

Do you desire speed and the newest technology? You might well have your eye on the 2022 Lamborghini Aventador, with its impressive 6.5L V12 engine capable of 769 hp and 531 lb-ft of torque. Looking for a true vintage beauty to start a collection? A 1930s Rolls-Royce Phantom 2 may be the one you’re looking for. 

Whatever your need or your desire, it is most likely available to you via a car financing package. 

I’m worried about bad credit – what can I do?

If you have bad credit and you were to try and get a loan from the bank, you might well struggle to get your bank manager to agree. However, when it comes to car finance, this issue rarely comes up. With most car finance products, the loan is taken out against the car itself, removing any hurdles that might have come between you and your dream car. 

I am unsure which financial product will best suit my needs. Can you help me decide?

Absolutely! In fact, it’s what we’re here for! We offer face-to-face meetings with our expertly trained concierge team who can carefully discuss your financial situation and your motoring desires. 

We can create bespoke plans to meet your needs, ensuring that you don’t have to worry about whether you have chosen the right product or not. If you don’t wish to come and see us, then you can contact us on the phone—you will have direct access to our experienced professionals from the moment you call us. You will never get directed to a call centre or be left to jump from one automated option to another. 

As such, finding the right financial product is never a problem you need to worry about. All you need to decide now is whether you want to drive with the top down or not!

Luxury Car Glossary

Car financing can sometimes seem difficult and complicated to understand, especially for people using it for the first time.  We at Magnitude Car Finance pride ourselves on our ability to demystify the car finance process. We ensure our customers understand the intricate details of the process, along with what financial packages can be available. 

As such, we have created the following glossary to help you understand some of the new terms you may come across when seeking a car financing product. 

Guaranteed Minimum Future Value 

This is sometimes shortened to GMFV. Guaranteed Minimum Future Value refers to the amount the finance company will pay you to take the car back at the end of a PCP agreement. The GMFV will always be conditional on mileage terms having been adhered to and the car meeting the agreed standards of condition. 

Equity 

Equity is the value of a vehicle minus any outstanding finance. For example, if a car is worth £80,000 and the outstanding finance is £50,000, then the equity is £30,000. 

Balloon 

A balloon is a term that normally comes with a financial product called Hire Purchase with Balloon. The balloon in this sense refers to a large payment that is deferred until the end of a payment period. If you choose this option, you would be agreeing to make a regular monthly payment for a set period, followed by a large one-off payment at the end (the balloon).  The balloon payment normally lowers your monthly payments, making them more manageable. 

Negative Equity 

Negative equity means that the amount you owe on a car is now higher than the value of the car itself. This issue most often arises when you use a PCP agreement but choose to pay a small deposit. Also, if you are on a PCP agreement and have exceeded your agreed mileage limit on numerous occasions, then this could lead to negative equity. Negative equity can normally be easily avoided by taking expert advice. 

Hire Purchase 

Hire Purchase is actually a type of loan. However, unlike a bank loan, this is a loan that is taken out against a vehicle. This works similar to a mortgage, where the loan is taken out against the house or property. With Hire Purchase, the finance company buys the vehicle and hires it to you until you have paid the final payment, at which point you have completed the purchase and own the vehicle. 

Mileage Limits 

When agreeing to certain financial products, there may be an agreed mileage limit. This will be told to you at the beginning of the agreement. The financial company will discuss with you what you anticipate your average car usage to be and then set a mileage limit with that in mind. If you exceed your mileage limit once or twice, it may not make a drastic difference to your agreement. However, if you fail to stick to the limit on a regular basis, this can affect your agreement, and may also lower your GMFV should you choose not to keep the car when the deal terminates. 

Value Depreciation 

Value depreciation is the difference between the price you bought your car for originally and the price you would get for it if you were to sell it today. It’s the rate at which your car’s value has fallen over time. Obviously, a car is at its most valuable early on in its life. As the car notches up mileage and gains general wear and tear over time, this will lower its value. If it experiences any prangs, or if your children spill a drink on the back seat, this will lower its value further. All these things will add to the depreciation of your vehicle’s value. 

Marque Vehicle

A marque vehicle is a vehicle produced by a famous and prestigious car company. For instance, Ferrari is a marque and any models it makes would count as a marque vehicle. 

For more information and additional glossary terms, please check out our guide.

Supercar finance packages to suit every wallet

Magnitude Car Finance specialises in bespoke finance packages that meet our customers’ needs. As such, we offer a wide range of products to finance your supercar, meaning that there is always something that will work for you. Because we work with leading funding institutes and lenders, we can easily tailor all our supercar packages to suit you and your financial situation. 

Our range of financial products—including Hire Purchase, Hire Purchase with Balloon, PCP, and Balanced Payments—are ideal for securing the car of your dreams. With our skilled concierge team and our three decades of experience in the car financing market, we know how to get you that luxury supercar without your wallet or bank account suffering.  

Furthermore, because of the contacts and knowledge we have, we can get you the best cars at the best prices, meaning you will always get the greatest deals from us. So whether you’re eyeing up that new Ferrari or you’re planning to purchase a classic Porsche, we can get you in the driving seat for the best price and with the best financial package. 

Unlike many companies, Magnitude Car Finance really has the human touch. We know that supercar owners don’t just demand the best from their cars, they demand the best from their finance companies too. As such, we never cut corners on our amazing customer service or our professionalism. We stop at nothing to achieve customer satisfaction, ensuring we work closely with our customers to discuss their goals and future ambitions. 

Basically, whatever your plans for car ownership, we can be there for you, helping you to live all of your wildest driving fantasies. 

How to buy a supercar: Your questions, answered

Do you have any questions that we haven’t yet answered? This FAQ section hopes to cover as many of these as possible.

What is a good credit score for car finance?

There is no specific credit score needed to secure finance on a car. As such, there isn’t really an optimal score to aim for in this respect. Depending on the package you choose, you can easily secure car finance with a less-than-perfect credit score. 

Can I mod a car on finance?

We all want our cars to seem unique. We all want it to feel special. As such, it’s only natural that you might want to modify or customise your vehicle in some way. However, the reality is that until you make the final payment to the finance company, the car doesn’t actually belong to you. It belongs to the lender. As such, it is unlikely you will be permitted to make modifications or customisations until that final payment is made. Otherwise, you are essentially modifying their property. 

There are some rare exceptions to this. Some lenders may agree to you modifying the car providing all modifications can be removed and that if the car is being returned, it is returned in its original condition. In other words, all modifications and customisations must be removed and the car must be left undamaged and unchanged by what you have done. This can be hard to achieve, however, and it often isn’t advised even if it’s allowed. 

Whatever happens, always check with your lender or finance broker before making any changes. Failure to do so may result in a dispute and could even be costly for you. 

Financing your supercar with Magnitude 

Magnitude Car Finance is the go-to broker when it comes to prestige car finance. We provide bespoke funding for your supercar, hypercar or luxury vehicle and as we are totally independent, we always work in your best interest. We have access to exclusive deals, technologically-advanced tools and expert concierge services. To help you understand the more complicated number-crunching aspect of things, we provide an easy-to-use settlement calculator and an extremely useful online finance calculator. 

We have an excellent record of finding the perfect funding package for each customer, working closely with them to secure them the car of their dreams. Furthermore, our rates are highly competitive, making it even more appealing to do business with us. 

If you want to feel the exhilaration of owning that luxury car of your dreams, then we are the people to make it happen. Why not get in touch with our expert team now and we will be more than happy to help.