Ferrari Hire Purchase

Hire purchase spreads the whole cost of a Ferrari across the term. You pay a deposit, you pay the balance in equal monthly payments, and the car becomes yours with the final instalment. Nothing is deferred to the back of the finance agreement, there is no balloon payment waiting for you in four years, and there is no argument at the end about what the Ferrari turned out to be worth.

It is the plainest of the Ferrari finance options we arrange and the one most company directors take. The accounting treatment is straightforward, the car sits on the balance sheet as an asset from the first day of the agreement, and the only variable left is how quickly you want to pay the finance down.

Take a Ferrari 296 GTB at the list price of £241,560. A deposit of 20 per cent is £48,312, which leaves £193,248 to finance. Over 48 months at an indicative nominal rate of 8.9 per cent the monthly payment is £4,800, the total paid across the agreement is £278,703, and the cost of credit is £37,143. At the end of it you own a Ferrari outright rather than a decision about whether to keep one.

We arrange that finance. We do not lend the money ourselves, we are not a dealer, and we do not sell cars. Our commercial lending starts at £25,000 and most of what we place is business finance, though we will tell you which route your case takes before anything is signed.

Worked example

Hire purchase on a Ferrari 296 GTB

Car: Ferrari 296 GTB
List price: £241,560
Deposit at 20%: £48,312
Term: 48 months
Indicative nominal rate: 8.9%
Deferred final payment: None
Monthly payment: £4,800

Arithmetic, not an offer, and no lender has seen your case. Computed from the list price using the same calculation as every other figure on this site. Change the deposit, the term or the rate and the payment changes with them.

What deposit you need on a Ferrari hire purchase agreement

There is no fixed figure and no lender publishes one honestly. Most Ferrari hire purchase deals we place start somewhere between 10 and 20 per cent, and every worked example on this site assumes 20 per cent because it is the commonest starting point, not because it is a rule. On a Ferrari Roma at £199,355 that deposit is £39,871. On a Ferrari Purosangue at £398,000 it is £79,600. A larger deposit lowers the monthly payments and usually improves the rate, because the lender is advancing less finance against the same car, and on cars at these prices a single point of deposit is real money. Part exchange counts as deposit, and so does the equity in a car you already own, which is worth raising in the first conversation because it changes what the car finance looks like before anyone quotes.

How Ferrari hire purchase payments compare with lease purchase and PCP

Hire purchase produces the highest monthly payment of the finance options on this site, and that is the point of it rather than a fault in it. Lease purchase and personal contract purchase both defer part of the balance to a balloon payment, so the monthly figure falls and the debt does not. On the same Ferrari 296 GTB, deferring 55 per cent of the list price to a final payment of £132,858 cuts the monthly payment from £4,800 to £2,485. You save £2,315 every month and you still owe £132,858 in four years. Hire purchase pays more each month and less in total, which is the trade every comparison of Ferrari finance deals eventually comes down to.

What a lender looks at when underwriting Ferrari hire purchase

Mostly the financial strength of the business and your record with credit, because the closing value matters less here than anywhere else on this site. A lender writing hire purchase is not forecasting what the Ferrari will be worth in four years, so the conversation is about serviceability, filed accounts, the age of the company and whether the directors have run car finance of this size before. That makes hire purchase the easiest of the finance options to arrange on an older or unusual Ferrari, where no lender would willingly publish a residual value at all. Personal guarantees are common on smaller limited companies. They are also more negotiable in scope than most people assume, and that is a conversation worth having before the paperwork is drawn.

Settling a Ferrari hire purchase agreement early

You can settle at any point and take the car, and directors do it often, usually because the business has had a good year or because the Ferrari is being sold. What you save depends entirely on how the finance was written. Some lenders rebate the unearned interest in full, some apply a settlement fee, and some charge a fixed number of months of interest whenever the settlement lands. Ask us to check that clause before you sign rather than after. On two sets of Ferrari finance deals that look identical on the monthly payment, the early settlement terms are usually the most expensive difference between them, and they are the part of the agreement nobody reads.

Classic Ferrari finance and older models on hire purchase

A classic car is where hire purchase earns its keep. No lender will set a residual value on a Ferrari 308 GTS or a Ferrari F355, because nobody can forecast one honestly, so lease purchase and PCP are rarely available on cars of that age. Hire purchase needs no forecast. It funds the purchase against the value of the car today and the covenant of the business behind it, and the classic car belongs to you once the finance is repaid. Used cars from the recent range sit between the two extremes. A Ferrari Portofino or a Ferrari California is too new to be a classic and too old to carry a manufacturer residual, and hire purchase handles both without anyone having to forecast anything. Classic cars and modern used cars are the same underwriting question wearing different clothes: what is the car worth now, and can the business service the payments. We arrange classic car finance on Ferrari models of every era on the same commercial basis as everything else, with our commercial lending starting at £25,000 and the advance set against a considered market valuation rather than a list price that stopped existing decades ago.

Hire purchase compared with personal contract purchase

Personal contract purchase, written everywhere as PCP, is the agreement most car finance guides describe first, because it dominates the mainstream market. On cars like these it behaves differently. A personal contract purchase defers a guaranteed final payment and lets you hand the car back instead of paying it, and the lender charges for carrying that risk in the rate. Hire purchase carries no such charge, no mileage limit and no condition report at the end. If you intend to keep the Ferrari, the guarantee inside a contract purchase is protection you pay for and never use. If you want the option to walk away from the car, read our page on PCP instead and compare the two on total cost rather than on the monthly payments.

Who owns the Ferrari during the term

The lender does, in law, until the final instalment is made. That is what separates hire purchase from finance secured against a car you already own outright. You have possession and use of the Ferrari from the first day, the agreement records you as the hirer, and title passes on making the last payment. In practice this matters in two places. You cannot complete a private sale of the car without settling the finance first, and the registration record will show a finance interest that any buyer or any dealer will find in thirty seconds. Neither is a problem when you have planned for it, and both are a problem when the sale is already agreed.

What Ferrari hire purchase costs across the current models

The same arithmetic runs across all seven of the latest models, and it runs the same way on a used Ferrari California or Ferrari Portofino once a value is agreed. A Ferrari Roma at £199,355 costs £3,961 a month. A Ferrari F8 Tributo at £213,000 costs £4,232. A Ferrari 812 Superfast at £270,000 costs £5,365, a Ferrari 12Cilindri at £335,000 costs £6,656, a Ferrari Purosangue at £398,000 costs £7,908, and a Ferrari SF90 Stradale at £419,940 costs £8,344. Each of those assumes the 20 per cent deposit and the 8.9 per cent indicative nominal rate used everywhere on this site, over 48 months. Lease purchase on the same cars costs close to half those figures each month and leaves a balloon payment behind it. No finance calculator can tell you what a lender will actually offer on a Ferrari car of any age, because the rate on a Ferrari car follows the financial covenant behind the application rather than the car sitting in front of it.

How a Ferrari finance application runs from the first call

The first call is short and decides whether there is a case at all. We ask what car finance you have run before, what the company looks like, which of the Ferrari models you are buying and who you are buying it from. From there we approach the lenders whose appetite fits rather than all of them, because a credit file peppered with searches is worth less than a clean one, and the lenders who write hire purchase are not always the lenders who write lease purchase on the same cars. You meet the team that places the finance rather than a call centre, and the same people stay with the file. Documents follow: filed accounts, bank statements, identification and the purchase invoice. How long the finance then takes depends on the lender and on how complete that file is, and the file is the part you control.

What Ferrari finance deals should actually be compared on

Not the monthly payment, which is the one number every set of finance deals is built to win on. Compare the total paid across the term, the early settlement terms, the fees at the front and the back, and whether the rate is fixed for the whole agreement. Two Ferrari finance deals quoted at £4,800 a month can differ by thousands once those four are in view. The same discipline applies across the car finance options here: hire purchase against lease purchase, lease purchase against a personal contract purchase, and all three against equity release on a car you already own. Ferrari cars hold their value well enough that equity release beats a new agreement more often than most car finance options pages will admit, and the financial case for it is usually made in the deposit rather than in the rate.

How we are paid to arrange Ferrari finance, and what we are not

We are a broker. We arrange car finance and we are not a lender, not a dealer, and not a party to the sale of the car. Our company registration number is 08174104 and the record is public. Once the finance is live, customer service on it sits with the lender rather than with us, although we stay in the file for the whole term.

The questions most Ferrari finance guides never get to

Two come up every time. Can the deposit be paid by the business rather than personally, and on a commercial agreement the answer is usually yes. And what happens if the Ferrari is written off, where the answer is that the insurer settles against the finance and any shortfall belongs to you, which is the reason gap cover exists at all. Most guides to Ferrari car finance stop at the monthly payment and reach neither question, and the guides that dealers publish rarely mention early settlement either. Our own tips are dull and they hold. Please get the settlement terms in writing. Please keep the service record complete, because it is worth real money later. Treat the first quote as an opening position rather than a price, and take the finance decision and the car decision on separate days. Cars at this level are bought quickly and the finance behind them is lived with for four years.