12% Return on Investment

[uber]

Seen these guys in Autocar the last few weeks

http://carlet.co.uk/

Look at the buy to let option

[ShadownINja]

Trying to think what the catch could be.

[Simpo Two]

ShadownINja said:

Trying to think what the catch could be.

Like 'webuyanycar' and 'postalgold' they doubtless pay the owner a pittance.

[ShadownINja]

Simpo Two said:

ShadownINja said:

Trying to think what the catch could be.

Like 'webuyanycar' and 'postalgold' they doubtless pay the owner a pittance.

Ah... you mean when it comes to getting rid of your car, you find you sell it for less than market rate. Good point.

[JQ]

ShadownINja said:

Trying to think what the catch could be.

The list is endless.

They use your £10,000 to buy a 7 year old Focus with 60k on the clock from an associated company - pocketing the difference themselves

They take your £10,000, never buy a car, take a £10k salary that week and fold the company. If they get 200 investors to do this it all seems worthwhile - £2m in the bank.

They take your existing car and trash it leaving you with massive repair bills and a cr*p residual value

You end up making no money as they struggle to let your car and after their huge "Management Fee" and the vastly increased insurance costs you're having to pay, removes any potential profit.

As with all these things, it's just praying on people's greed, the same as all those Buy-to-let scams that were out there 3 years ago. This just looks like another version.

[ShadownINja]

Ah.

Tell me about the buy-to-let scams? Was it selling over-priced property with lies about income?

[JQ]

ShadownINja said:

Ah.

Tell me about the buy-to-let scams? Was it selling over-priced property with lies about income?

Sounds very similar to the above doesn't it.

[bogwoppit]

Well even if you buy after the first year, how many cars depreciate at much less than 12% (and being used as hire cars to boot). A Focus loses about 20% per year:
http://www.whatcar.com/car-depreciation-calculator...

If it's guaranteed 12% above depreciation, every year, then that is interesting (assuming they stay solvent of course).

[Deva Link]

Shouldn't there be all sorts of FSA type stuff on that website?

[chmod]

If you look at the price of a Range Rover sport on the site they are charging approx £1200 per month. A sub prime contract hire would be around £700 and a prime lender about £550. Looks like they are banking big style

[JustinP1]

Hmm let me think:

Do I spend my £489 per month renting a 55 plate Ford Fiesta from them?

Or do I just do a straight lease on a new one for £150?

Decisions, decisions...


Plus their website is an absolute dog to load. They are going nowhere apart from with your money.