Virgin Racing: a car finance success story.With this year’s Formula 1 season approaching shortly, there has been plenty of talk regarding the finances of many of the new teams.
With this year’s Formula 1 season approaching shortly, there has been plenty of talk regarding the finances of many of the new teams. Car finance has been a hot topic among the motor sport elite and with teams such as USF1 seemingly unable to acquire the vast amount of finances required to race at the pinnacle of motor sport, it seems the best way forward for newcomers is to budget. Virgin Racing is doing just that, their 2010 car has been designed without the need for the traditional expensive wind tunnel, replacing it with that modern of all technologies; a computer.
More specifically, computer software called CFD that helps cut wind drag and that in-turn increases its speed. This new design ethos has helped Virgin Racing with their car finance and loans dilemma and has enabled them to make the grid for the first race of the season at Bahrain.
With the FIA insisting that teams reduce their financial spending, Virgin Racing has been able to undercut the £40million budget cap allowing them to think less about car loans and more about winning races. To set up a new team in F1 used to cost up to $400m, with Virgin Racing taking this financial standpoint, will more teams in the future decide to take this route? We can only watch and see.
Posted by Edwin Miles on