Unlocking Capital: Leveraging Vehicles as Security for Financing

When it comes to capital raising for HNW individuals, it is important to consider a diverse range of asset classes in order to maximise your borrowing potential. Vehicle financing offers an advantageous alternative asset option from which extra equity can be accessed efficiently. It is essential to recognise the two main categories of vehicle that can be utilised as security: prestige vehicles and agricultural vehicles. While these might seem like an odd pair at first glance, both vehicle types possess unique characteristics that make them valuable assets well-suited for capital raising.

1. Prestige Vehicles: Where Luxury Meets Value

Prestige vehicles carry more than just aesthetic appeal. Under their polished exteriors lies a substantial equity pool that is often overlooked. These high-end automobiles retain their value remarkably well and can be leveraged to secure funding due to their relatively liquid nature. This provides lenders with comfort in securitising prestige vehicles as an asset class and enables owners the ability to accessing the capital they require whilst maintaining ownership of their cherished vehicles.

2. Agricultural Vehicles: Powering Financial Growth

On the flip side, agricultural vehicles represent an often-untapped reservoir of financial potential. These machines, critical to the functioning of farms and agricultural operations, hold considerable value that can be harnessed to raise liquidity. By using agricultural equipment as security, agribusiness owners can unlock funds for a broad range of uses, both personal and entrepreneurial - to invest in their enterprises, fuelling growth, and driving innovation, at a time where the agricultural sector is one in which there is minimal appetite for lending into more broadly.

Perhaps the most enticing aspect of leveraging vehicles is the cost of funds. In the current market, remarkably low-interest rates are accessible, potentially as low as 4.5% per annum, driven-in-part by inherent value and stability of the vehicle asset class, as well as their substantial resale value. To put this into perspective, this is significantly below the prevailing UK base rate, making it an incredibly attractive option for those looking to optimise their borrowing costs. Furthermore, for those that require the ability to pivot quickly in an ever-changing market, vehicles provide a reliable alternative to accessing capital quickly, with the process from beginning to completion taking as little as a few weeks. This enables entrepreneurs the agility they require to take advantage of opportunities as they present themselves.

In conclusion, the concept of raising capital with a vehicle as security should be considered as a compelling alternative for HNW’s and business owners. The benefits are myriad, from remarkably low-interest rates to the unlocking of substantial equity hidden within an often-overlooked asset class. Moreover, the expedited process ensures that borrowers can swiftly access the capital they need. As financial landscapes continue to evolve, innovative solutions like leveraging vehicles for financing stand out as a means to efficiently unlock capital for HNW’s and business owners.


The views and opinions expressed in this piece are those of the author and do not constitute advise or a recommendation, nor do they necessarily reflect the official policy or position of Enness. They are also not intended to indicate any market or industry viewpoints, or those of other industry professionals.


Enness does not give advice on Securities Backed Lending or Luxury Asset Financing, and lender introductions are unregulated.

This guide is for information and illustrative purposes only and nothing contain within should be construed as advice or a recommendation and is not an invitation to buy or sell securities.