Supercars are being used as collateral for loans, according to borro, the personal asset lender.
Borro has lent almost £8 million against supercars stored in its climate controlled facility, and saw a 127% increase in the loan value of supercars in 2012 (compared to 2011).
Supercars currently represent 11% of borro’s overall loan book.
Borro has also revealed the top five supercar brands used by clients to access finance since launching in 2008:
- Aston Martin
Examples of loans against these brands:
- Porsche 911 turbo with a loan value of £8,000
- Mercedes Mclaren with a loan value of £120,000
- Bentley Continental GT with a loan value of £20,000
- Aston Martin Vantage with a loan value of £10,000
- Jaguar E-Type with a loan value of £30,000
Paul Aitken, CEO of borro, said: “Often clients coming to us with these types of high performance vehicles own another car and keep their supercar in storage so it makes sense to use it as security for a loan.
“There are a variety of reasons why these cars have gone into storage in the first place; some people may have a winter car and a summer car, may have parking restrictions or excessive parking costs, while some purchase a number of cars for investment purposes. In the main, our clients are self-employed or small business owners, looking to unlock finance from prestige vehicles to facilitate business transactions or opportunities.”Focus on Ferraris:
Since borro launched in 2008, it has seen a variety of different Ferrari models used as collateral for loans, including a Ferrari 360, Ferrari 575M, and a Ferrari 456M to name but a few. The oldest model seen at borro is Michael Davis’ 1972 Ferrari 365 (loan value of £100,000) and the newest was a Ferrari 430, a 2006 version of the Italian sportscar (loan value of £60,000). The profile of a typical Ferrari client is male, average age 49, and the average duration of the loan is four months.