Supercar finance

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Page written by Chris Godfrey. Last reviewed on October 29, 2024. Next review due March 1, 2025.

They go fast, they look great and they cost far more than your typical daily driver. Supercars are in a different league when it comes to automobiles. But how do you buy one without spending piles of cash? Read on to find out more about supercar financing and what you need to qualify.

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What cars are classed as supercars?

Supercars, exotic cars, and hypercars, are all part of an elite class of automobile that pushes the boundaries of luxury, performance, rarity, styling and price. However, as the names suggest, there are subtle differences between these types of premium machines:

Exotic cars

Generally, an Exotic Car is rare and not seen frequently on the road. While it may not reach the extremes of a Supercar in terms of price, performance, or exclusivity, it occupies a unique niche, often serving as a precursor to today’s Supercars and Hypercars. Exotic car examples include the Bentley Bentayga, Rolls Royce Wraith, Jaguar F-Type and Aston Martin DBS.

Supercars

Supercars are at the cutting edge of modern automotive performance, typically boasting hundreds of horsepower, cutting-edge technology, and designs that set new benchmarks. With high price tags and lap times that can surpass many dedicated race cars, Supercars embody the best of what the auto industry has to offer. Supercar examples include vehicles such as the Ferrari 296 GTB, Porsche 911 GT3, Lamborghini Huracan and Chevrolet Corvette Z06.

Hypercars

Hypercars represent the top one percent of Supercars. These vehicles are at the limits of performance, technology, and design, and often carry price tags that can run into the Rmillions. Examples like the McLaren P1, Bugatti Chiron, Ferrari LaFerrari, and Porsche 918 showcase nearly 1,000 horsepower, state-of-the-art technology, and unmatched performance, solidifying their place at the peak of automotive innovation.

How does supercar finance work?

Strange as it may sound, supercar finance works very much like finance for regular cars, except you should expect higher down payments, much higher monthly instalments, a vigorous qualifying process and the need for stellar credit. (Many supercars are purchased by companies and can become an asset on the balance sheet, a process that may also unlock valuable tax efficiencies).

Supercar finance is generally available in two basic formats:

Hire purchase

You buy your supercar by making equal monthly instalments over a fixed period. At the end of the contract, you own the car outright.

Advantages

Buy a more expensive car than you may buy for cash
No balloon payment at contract end
Own the car when the contract is paid off

Disadvantages

You don’t own the car until the contract is paid in full
If you miss payments, the lender can repossess the car
Interest is added to the cost of the car

Lease purchase

You pay lower monthly payments that you would with a hire purchase agreement, but you must also pay a lump sum – known as a balloon payment – at the end of the contract if you wish to own the car. Note that the balloon payment on a supercar could be in the tens or even hundreds of thousands of dollars.

Advantages

Buy a more expensive car than you may buy for cash
Lower monthly payments than hire purchase
Option to own the car when the lease term ends

Disadvantages

You don’t own the car until you pay the balloon payment at the end of the lease
If you miss payments, the lender can repossess the car
Interest is added to the cost of the car

Requirements for financing a supercar

As suggested above, financing a supercar is basically the same as financing a standard family car, except the qualification process is significantly more thorough. Typical loan criteria includes:

Excellent FICO credit score: Top-tier credit for supercar financing starts at 750, although it may be possible to find lenders that will accept a lower score
Established vehicle credit history: Lenders prefer that you’ve previously borrowed similar amounts for a similar purpose. Usually, this means you won’t be able to borrow more than 150% of the amount of your last car loan. For example, if you borrowed R100,000 for your previous vehicle, you may be able to borrow R150,000 for your new supercar
Down payment: Lenders will usually ask for a down payment of at least 20%
Sufficient income: The total price tag of the car shouldn’t exceed your annual gross income
Loan term: Extended loan terms of up to 144 months may be available from some lenders, but typical terms range from 48 to 84 months
Other requirements: Some supercar makers require buyers to sign a contract that prevents reselling within a year. This is to prevent customers from operating a secondary grey market for exotic vehicles. Some brands may also need to see that you have a solid relationship with your local dealer and potentially go through a background check and vetting process before you can purchase an exclusive vehicle

If you’re buying your supercar through your business, lenders may also require:

Business details and accounts – past two years
Cash flow forecasts
Balance sheet
Tax compliance certificates
At least two years in business

Is supercar finance the same as exotic car finance?

Yes. However, because supercars are usually more expensive than exotic automobiles, supercar finance may require higher down payments and tougher qualifying rules.

Alternatives to supercar finance

If leasing or hire purchase are not a fit for you, it may be possible to finance your supercar using other methods:

Business loan: Let your business buy your supercar for you with a term loan, invoice financing or business line of credit
Asset-based lending: Unlock the dormant value in your existing business assets – plant, machinery, vehicles, property, even other exotic cars your organization may already own. Use the equity in these assets as collateral for a business loan

Get started with Swoop

No matter if you’re seeking your first supercar loan or you’re a seasoned borrower, working with business finance experts can make all the difference when applying for financing. Contact Swoop to discuss your borrowing needs, get help with your application and to compare high-quality supercar loans from a choice of lenders. Get in the loan fast lane. Register with Swoop today.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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