Buy2letcars anybody had dealings or any knowledge of this?
Discussion
Car leasing has been around forever. You're just putting up the capital for them to buy a car and then lease it to someone. The asset does depreciate but that's all calculated at the start.
The risk is simply if they stop paying or try to cancel the lease I'd assume. Repossession has always been a bit of a grey area but the car never belongs to the person leasing it. If there is a problem with payments they can repossess it but then where does that leave you as the investor?
The risk is simply if they stop paying or try to cancel the lease I'd assume. Repossession has always been a bit of a grey area but the car never belongs to the person leasing it. If there is a problem with payments they can repossess it but then where does that leave you as the investor?
Thanks ATM, one of my concerns is even if you have an asset( ie a particular car) what happens if it is stolen by the person leasing it? Even if they are convicted you again have lost the asset/outlay. I also know that the recovery of unpaid monies is not always successful. It just seems a bit suspect but ultimately someone wants to gamble with other people’s money........and thus it has always been.
They claim 100% history but also explain the risks on their site. See below. There is no regulatory protection like equities. You can't cancel early.
I had a quick click to their leasing site which seems to lead with credit history problems are welcome - hmm...
The projected returns are based on the interest which end-users are required to pay as part of the car hire fees on the vehicle which you fund. If the end-user fails to pay their car hire fees then the actual returns paid to you may be lower than expected. We take steps to ensure that end-users continue paying the fees that they owe, including by fitting Smart Telematics and Tracking devices to each vehicle, which means that the vehicle will be immobilised if an end-user does not pay their monthly fees. One of our group companies can then take steps to recover the vehicle.
https://www.buy2letcars.com/our-investments/key-ri...
We have maintained this 100% record since inception and hope to continue too long after our now 6th year of trading.
https://www.buy2letcars.com/our-investments/monthl...
I had a quick click to their leasing site which seems to lead with credit history problems are welcome - hmm...
The projected returns are based on the interest which end-users are required to pay as part of the car hire fees on the vehicle which you fund. If the end-user fails to pay their car hire fees then the actual returns paid to you may be lower than expected. We take steps to ensure that end-users continue paying the fees that they owe, including by fitting Smart Telematics and Tracking devices to each vehicle, which means that the vehicle will be immobilised if an end-user does not pay their monthly fees. One of our group companies can then take steps to recover the vehicle.
https://www.buy2letcars.com/our-investments/key-ri...
We have maintained this 100% record since inception and hope to continue too long after our now 6th year of trading.
https://www.buy2letcars.com/our-investments/monthl...
Are you buying an individual car and leasing it to an individual person? IMHO that is unacceptably risky.
An acceptable risk would be you pay into a pool of money and they buy many cars and spread the risk and return.
IMHO if you are looking at this, I assume you want some cash above what you would get with low risk investments. In that case, I'd just suggest you buy some shares. The share market (worldwide) has taken a battering over the last few months so it may be a reasonable time to buy. And you can buy into companies with a history of paying dividends. Or you can buy into a managed fund.
Buying an individual car, leasing it to someone and hoping it won't get stolen and they will continue to pay up? f
k that.
Edit: It does look like they are putting investors money into a pool rather than them buying an individual car. If you have plenty of spare money, then you could bung £10,000 in there and see what happens, but be prepared to lose it. Companies do go into administration regularly. I've invested in many companies via shares over the years and several times, the share value has gone to close to zero or I've lost the lot. I spread my risk by putting it into multiple companies, so overall, it is a reasonable return and reasonable risk.
An acceptable risk would be you pay into a pool of money and they buy many cars and spread the risk and return.
IMHO if you are looking at this, I assume you want some cash above what you would get with low risk investments. In that case, I'd just suggest you buy some shares. The share market (worldwide) has taken a battering over the last few months so it may be a reasonable time to buy. And you can buy into companies with a history of paying dividends. Or you can buy into a managed fund.
Buying an individual car, leasing it to someone and hoping it won't get stolen and they will continue to pay up? f
k that.Edit: It does look like they are putting investors money into a pool rather than them buying an individual car. If you have plenty of spare money, then you could bung £10,000 in there and see what happens, but be prepared to lose it. Companies do go into administration regularly. I've invested in many companies via shares over the years and several times, the share value has gone to close to zero or I've lost the lot. I spread my risk by putting it into multiple companies, so overall, it is a reasonable return and reasonable risk.
Edited by creampuff on Saturday 22 December 11:00
creampuff said:
Are you buying an individual car and leasing it to an individual person? IMHO that is unacceptably risky.
An acceptable risk would be you pay into a pool of money and they buy many cars and spread the risk and return.
Edit: It does look like they are putting investors money into a pool rather than them buying an individual car.
It doesn't to me. It looks like you fund one car or part of one car.An acceptable risk would be you pay into a pool of money and they buy many cars and spread the risk and return.
Edit: It does look like they are putting investors money into a pool rather than them buying an individual car.
ATM said:
It doesn't to me. It looks like you fund one car or part of one car.
Yes it seems that way now I read it. Looks like the risks are:
- The lease company goes out of business; you are a long way down the list of creditors, you lose your money
- The person leasing the car doesn't pay up or the car is stolen, smashed up etc and they don't pay up. The leasing company say they will give you back 85% of what you invested, but that looks like it is not guaranteed by the lease company.... it's short on details buy my reading is that if the car is uninsured and gets smashed up, then you will likely not get anything.
I'd be prepared to lose all your money.
Dunno if this helps, but I've been involved in motor btl.
My minicab firm needed cars to rent to drivers. It worked like this.
You put down £1k deposit and finance the balance either with dealer finance or via a broker - in my case Oracle.
The car then rented for an average £150 a week, 50 weeks a year. So £7.5k gross
There are manifold costs involved, but it boils down to about £1k nett per annum per vehicle.
After 5 years of minicabbing the vehicles get sold for an average of £1k.
So, simply put, £1k "hurt money" up front earns £1k a year and after 5 years the upfront £1k comes back only to be used to rinse and repeat the process ad infinitum.
There is a MASSIVE amount of hassle involved in renting minicabs to minicab drivers. My cars were managed by a motor manager at a standard rate of £10 per week per vehicle which is included in the £6.5kpa cost of the £7.5kpa gross income.
Lots of people rent minicabs to drivers, although some firms only allow drivers to use cars rented from themselves.
My minicab firm needed cars to rent to drivers. It worked like this.
You put down £1k deposit and finance the balance either with dealer finance or via a broker - in my case Oracle.
The car then rented for an average £150 a week, 50 weeks a year. So £7.5k gross
There are manifold costs involved, but it boils down to about £1k nett per annum per vehicle.
After 5 years of minicabbing the vehicles get sold for an average of £1k.
So, simply put, £1k "hurt money" up front earns £1k a year and after 5 years the upfront £1k comes back only to be used to rinse and repeat the process ad infinitum.
There is a MASSIVE amount of hassle involved in renting minicabs to minicab drivers. My cars were managed by a motor manager at a standard rate of £10 per week per vehicle which is included in the £6.5kpa cost of the £7.5kpa gross income.
Lots of people rent minicabs to drivers, although some firms only allow drivers to use cars rented from themselves.
This is their shoddy car leasing sister site. If you go to home it displays an error.
https://wheels4sure.com/?page_id=15
https://wheels4sure.com/?page_id=15
Done some more research. Firstly I have spoken with FiL and now decided that the ethics of leasing vehicles to those with poor credit at inflated prices doesn’t sit comfortably with either of us. So in Dragons Den parlance “I’m out”.
Also they are walking a fine line with some of the FCA regulations which are applicable to the parent company. There is some argument that their operating practices would require regulation due to them advertising the 85% settlement from collective funds.
Anyhow thanks for all the well considered feedback.
“Merry Christmas ya filthy animals” Mike
Also they are walking a fine line with some of the FCA regulations which are applicable to the parent company. There is some argument that their operating practices would require regulation due to them advertising the 85% settlement from collective funds.
Anyhow thanks for all the well considered feedback.
“Merry Christmas ya filthy animals” Mike
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