Bonus curb sees supercar financing increase
A clampdown on excessive bonuses awarded to City bankers has led to an increase in the number of supercars purchased with traditional finance packages.
Normally a popular route to acquiring a new family hatchback or crossover, personal contract purchase and hire purchase schemes are becoming increasingly popular in the rarefied world of high performance sports cars, with bankers looking to retain their extravagant lifestyles, but increasingly unable to pay lump sums for £100,000+ cars.
Oracle finance, which organises such deals on cars from marques as exclusive as Ferrari and Lamborghini, predicts that the days of paying for a performance car outright are a thing of the past.
"We've noticed a distinct trend of our traditional City customers looking at hire purchase, lease purchase and some of our more bespoke packages, instead of simply spending their annual bonus on a new car," said Mr Brook.
"My finance team deals with a large number of bankers and City workers, and we've noticed their buying habits have changed dramatically. In the past, they'd simply shell out a lump sum on a car when they got their bonus – many luxury car dealerships relied on it.
"These days, with curbs on bonuses, we're finding even City bankers need finance packages and we're happy to provide them with flexible funding solutions to suit their needs."
Recently a banker funded a £250,000 Ferrari 458 Italia on a PCP deal, while another was able to set up a lease purchase deal on a brand new Porsche 911 worth £110,000.
Banker' bonuses have been affected by the EU Bonus Cap, which came into effect at the start of the year. It means that City workers can no longer be paid bonuses worth more than their annual salary, or twice as much provided it is shareholder approved.
The British Government recently blocked bonus plans by RBS, which it bailed out in 2009, though some banks have attempted to sidestep the new regulations.