Anyone used BrokerMy in Yorkshire? 10k cars...

[southpaw]

Spotted an advert in the classifieds from a company called BrokerMy, they have a few cars at normal prices and a few offered at £10k, it screams scam but if their account had been hacked surely all ads would have been changed? Anyone know how this would work if it's true?

Here's an example: http://www.pistonheads.com/classifieds/used-cars/l...

[itz_baseline]

If you have to ask you already know the answer. You will not be able to get that car for £10k. Its either a scam or the £10k is a deposit....

[anonymous-user]

Or you would be leasing / renting it from them for an as yet unspecified length of time

note the wording does not say anything about you owning / buying the car

"Yes we know it may sound too good to be true but we can have you driving a Lotus Exige for only £10,000"

[brokermy]

Hello, I just thought after being advised of this post by a customer, that I would log on to clarify. Our current offers are not scams, and the vehicles are genuine hpi clear examples. Of course anyone should know that you cannot buy for cash a genuine 20k car for half the price and these offers are part of a package. For any serious enquiries we welcome email contact, telephone calls and indeed a visit to one of our offices where we can explain how the package works further and get our clients into driving the cars they want, without the outlay they would normally need.

[amusingduck]

brokermy said:

Hello, I just thought after being advised of this post by a customer, that I would log on to clarify. Our current offers are not scams, and the vehicles are genuine hpi clear examples. Of course anyone should know that you cannot buy for cash a genuine 20k car for half the price and these offers are part of a package. For any serious enquiries we welcome email contact, telephone calls and indeed a visit to one of our offices where we can explain how the package works further and get our clients into driving the cars they want, without the outlay they would normally need.

Whats the harm in giving us a quick rundown of how it works? It still sounds like you're shying away

[Grenoble]

I've taken a look at the web site and think I can guess how it works, and it isn't a scam, it seems quite clever if I have read it correctly.

Seller deals with broker.
Broker arranges finance on vehicle.
Buyer identified.
Buyer pays lump sum equal to, say, 3 years finance payments up front.
This releases the finance from the finance house to the seller (less brokers commission)
Car remains property of finance house.
Buyer has effectively paid for a full term lease on used car up front, and hands car back at the end.

Sound right?

[kayzee]

Grenoble said:

I've taken a look at the web site and think I can guess how it works, and it isn't a scam, it seems quite clever if I have read it correctly.

Seller deals with broker.
Broker arranges finance on vehicle.
Buyer identified.
Buyer pays lump sum equal to, say, 3 years finance payments up front.
This releases the finance from the finance house to the seller (less brokers commission)
Car remains property of finance house.
Buyer has effectively paid for a full term lease on used car up front, and hands car back at the end.

Sound right?

No, because "no monthly payments and own the car at the end of the agreement".

[sunbeam alpine]

If it was that good, they'd post all the details.

[Grenoble]

It looks like a genuine company - I just can't work out the business model given the broker/finance/outstanding balance position.

Looks like there was a similar company called: www.makescarsense.com with the same owner. Given it is a brokerage, I can't see why they wouldn't share more about the business model. Some nice cars listed.

[Marc p]

Grenoble said:

I've taken a look at the web site and think I can guess how it works, and it isn't a scam, it seems quite clever if I have read it correctly.

Seller deals with broker.
Broker arranges finance on vehicle.
Buyer identified.
Buyer pays lump sum equal to, say, 3 years finance payments up front.
This releases the finance from the finance house to the seller (less brokers commission)
Car remains property of finance house.
Buyer has effectively paid for a full term lease on used car up front, and hands car back at the end.

Sound right?

As someone else said, it says you own the car at the end, looking at there description:

Yes we know it may sound too good to be true but we can have you driving an Exige for only a £10,000 initial deposit, no monthly payments and own the car at the end of the agreement. No monthly payments to worry about, no mileage restrictions and a car in the colour / spec of your choice. No in term restrictions so you can swap and change the car mid term as life changes.

My guess is that it is similar to what you said, but with a balloon payment at the end as they refer to the £10k as an 'initial deposit', which means you will be in for more money. It's a company that has to make money at the end of the day, so they mill be milking you somehow.

[EddieFelson]

Seems strange they don't detail an example

[EddieFelson]

By my rough fag packet calculations on interest alone it will take 20 years to pay for the car. Not including any profit for the seller.

[AVES]

My guess is that they buy Coke with the £10K, cut it, flog it on and use the profits to pay your monthly payments.

Come on - It may not be a scam in the sense of a nigerian sending his shipping agent round to collect your car but it clearly has the air of a scam about it.

[Gliderpilot40]

I had a lengthy exchange of emails about a £50k Car for £25k. The deal is this: you pay brokermy £25k. They arrange 60 months hp agreement with some finance house or other for the £50k. They pay £2k initial payment to finance house and then put £23k into some "commodities" based financial product that is "contractually guaranteed" to produce a 22% (yes that is not a typo!) return out of which the finance payments are made. Sounded too good to be true to me. If commodities product failed I would still be on the hook for £50k having paid £23k to brokermy!! Claimed 3 years of growth in audited accounts but brokermy ltd only registered in 2012. Do your own research and if you are happy to believe that you can get a £50k car for £25k sign up! It was not for me :-)

[veevee]

Gliderpilot40 said:

I had a lengthy exchange of emails about a £50k Car for £25k. The deal is this: you pay brokermy £25k. They arrange 60 months hp agreement with some finance house or other for the £50k. They pay £2k initial payment to finance house and then put £23k into some "commodities" based financial product that is "contractually guaranteed" to produce a 22% (yes that is not a typo!) return out of which the finance payments are made. Sounded too good to be true to me. If commodities product failed I would still be on the hook for £50k having paid £23k to brokermy!! Claimed 3 years of growth in audited accounts but brokermy ltd only registered in 2012. Do your own research and if you are happy to believe that you can get a £50k car for £25k sign up! It was not for me :-)

Ponzi Scheme.

[Grenoble]

Gliderpilot40 said:

I had a lengthy exchange of emails about a £50k Car for £25k. The deal is this: you pay brokermy £25k. They arrange 60 months hp agreement with some finance house or other for the £50k. They pay £2k initial payment to finance house and then put £23k into some "commodities" based financial product that is "contractually guaranteed" to produce a 22% (yes that is not a typo!) return out of which the finance payments are made. Sounded too good to be true to me. If commodities product failed I would still be on the hook for £50k having paid £23k to brokermy!! Claimed 3 years of growth in audited accounts but brokermy ltd only registered in 2012. Do your own research and if you are happy to believe that you can get a £50k car for £25k sign up! It was not for me :-)

Thank you for this insight.

If 23% schemes existed, we'd all have them. As with everything, if its too good to be true, etc....

Suggest a nudge to the FSA if they are selling a regulated product with such claims.

[Little Lofty]

I was contacted by them when I had my car for sale on here, they offered a broker service in the same way a dealer offers sale or return.I done a bit of research and wasn't convinced, I couldnt find the cars they they have on their website for sale on the likes of Autotrader, so I couldn't really see how they could sell my car on my behalf.It may be legit, but it didn't want to take the risk.

[ModernAndy]

These guaranteed return to let you pay for something very valuable for nothing schemes, eh? Seen so many but not a single one that's worked.

A friend of mine (okay, an acquaintance) tried to get in with a company doing the same with houses, sofas, kitchen units, etc.

I went along to one of their sales meetings for a look out of interest. Greasy bds the lot of them

[Gliderpilot40]

Grenoble said:

Thank you for this insight.

If 23% schemes existed, we'd all have them. As with everything, if its too good to be true, etc....

Suggest a nudge to the FSA if they are selling a regulated product with such claims.

I did suggest that if I was able to get a guaranteed 22% return I would be borrowing as much money as I could at 10% or less and investing, and would not be messing about trying to sell cars! I would not be surprised if this was a type of ponzi scheme where the early adopters' HP payments are made by the "commodities" product and supplemented by later adopters' "deposits". Cynical of me I know but only time will tell. I have just been through the FSA approval process for one of my businesses and I would be surprised if this "scheme" as outlined to me by brokermy would get FSA approval. The FSA is after all there to protect us all :-) Another thing that didn't seem right - the email footer on the emails I received says "BrokerMy Ltd Group of Companies". BrokerMy Limited is not in a group of companies, was incorporated on 2 May 2012 and has only one director. That director's other company is in liquidation. One of the great things about the internet is you just cannot hide if you want to be less than up front with people. Just saying!!

Edited by Gliderpilot40 on Wednesday 12th June 11:18

Edited by Gliderpilot40 on Wednesday 12th June 17:11

[walm]

If the buyer is taking the risk that the 22% per annum scheme doesn't pay up then this is a very clear scam.

In fact, screw it. Post number 2 summed up all we needed to know.