Well, the truth is high net worth individuals (HNWI) can purchase million-pound cars because they simply have the money to do so. It’s all about making the decision to walk into a car manufacturer and choosing the supercar they want to add to their inventory. But in most cases, they choose not to do it like that.
Most HNWI prefer to take advantage of finance packages, just like your average citizen, and purchase an exclusive supercar over a few months in order to free up their money flow for other investments.
Lamborghini’s and Ferrari’s cost a great deal of money, starting from around €200,000, so by getting finance on a vehicle as prestige as these ensure that millionaires don’t spend big sums of money all at once.
The type of individuals that you may find doing this is millionaire entrepreneurs or business owners with large bank accounts that don’t necessarily have a high cash flow or continually put their available cash into investments and assets like for example real estate or property development.
This decision works in favour of millionaires as car finance usually is a 4-year contract and gives the opportunity for these individuals to avoid shocking depreciation, decide to upgrade to a better version or model, or decide to hold onto a rapidly appreciating car.
Millionaires are accepted for mortgages on €2,000,000 mansions on a weekly basis, so most would think it’s as easy to finance a Bugatti Chiron at the same price. Surely these people will have to prove that they can cover their monthly payments €20,000, right?
This is where prestige-car finance providers perform a full financial check and assess each client’s balance sheet and more.
So a Bugatti Chiron is a Hypercar that costs a gobsmacking €2,000,000 and to purchase such an awesome vehicle will cost you around €20,000 and provide a down payment of €450,000. It doesn’t end there of course because, after the duration of the contract, a millionaire would have paid €500,000 more than the actual price of the car.