Classic car owners are increasingly putting their vehicles up as security for loans.
HNW Lending, an alternative lender that provides individual loans of between £50,000 and £2 million to clients against their valuable assets, has seen a dramatic increase in enquiries.
The company is looking to provide loans against more classic cars because they are easier to validate as genuine when compared to other valuable assets, and because they have been rising in value.
The key findings are as follows:
- HNW Lending had 35% more enquiries around securing loans against classic cars for the period October 2016 to March 2017 when compared to the previous six month period. This was also 27% higher than the same period a year earlier (October 2015 to March 2016).
- To date, HNW Lending has provided loans worth over £1 million against classic cars, with the biggest being £150,000 against a 1939 Lincoln Zephyr, a Porsche 911 and a 1957 VW Samba Bus. (see release for list of examples of loans provided against classic cars by HNW Lending.
Ashley Maddox, co-founder of AG Classic Automobiles (www.agclassic.com), which sources specific classic cars for clients and also services and restores them, said, “The value of classic cars rose on average by 467% in the 10 years to March 2016, 161% over five
years, and by 17% in the 12 months to March last year.”