Dealers raffling cars
Discussion
Stumbled across a dealer raffling a car...
https://raffleshackuk.com/product/bmw-140i/
The dealer has a popular youtube channel and is based in the Peak District and is quite open about raffling the car on his recent review of it
Seems a bit of potential grey area / loophole regarding consumer rights comeback should the car turn out to develop faults - albeit that the winner has only paid (in this case) £4.99 for the car, the dealer has received a minimum of c. £28,000 for it, less any commission he has to pay to the 'raffle' company
Thoughts?
https://raffleshackuk.com/product/bmw-140i/
The dealer has a popular youtube channel and is based in the Peak District and is quite open about raffling the car on his recent review of it
Seems a bit of potential grey area / loophole regarding consumer rights comeback should the car turn out to develop faults - albeit that the winner has only paid (in this case) £4.99 for the car, the dealer has received a minimum of c. £28,000 for it, less any commission he has to pay to the 'raffle' company
Thoughts?
Edited by Canon_Fodder on Saturday 7th May 21:52
The minimum no of tickets needed to sell for the car to be won is 5611 which at £4.99 raises £27998.
If the dealer sells 5610 tickets, the car isn't won but 70% of the money raised goes to the winner, so presumably the remaining £8397 goes to the dealer, plus they get to keep the car.
I bet they hope they only sell 5610 ticket or less.
I wonder how they audit the number of tickets sold
How to make your assets work for you.
If the dealer sells 5610 tickets, the car isn't won but 70% of the money raised goes to the winner, so presumably the remaining £8397 goes to the dealer, plus they get to keep the car.
I bet they hope they only sell 5610 ticket or less.
I wonder how they audit the number of tickets sold
How to make your assets work for you.
Monkeylegend said:
I wonder how they audit the number of tickets sold
.
Yes good point too....
I was thinking that the car is a lemon so rather than have the agg of buyer comeback if he sold it in the normal way he's 'raffling' it to dodge that. But you also make a good point on how these things are regulated and the potential for fraud
The dealer in question seems to sell lots of aging performance cars and often rants on his channel about buyers 'moaning' when their car breaks down
I’m not sure Matt is an owner of raffleshack - it’s a friend of his and he is now the face of their YouTube.
The M140i video was clearly just a promo for the raffle and an excuse for another video.
Most of the previous cars he has pushed through raffle shack are ones he’s bought cheap and spent way to much money on to get back anything by retailing (which he openly admits to) or I think he has also raffled off a couple of his own cars he no longer wants (again spent too much on them)
Not sure on the hostility and conspiracy when there’s definitely much more shady outfits raffling off cars or other items.
The M140i video was clearly just a promo for the raffle and an excuse for another video.
Most of the previous cars he has pushed through raffle shack are ones he’s bought cheap and spent way to much money on to get back anything by retailing (which he openly admits to) or I think he has also raffled off a couple of his own cars he no longer wants (again spent too much on them)
Not sure on the hostility and conspiracy when there’s definitely much more shady outfits raffling off cars or other items.
Monkeylegend said:
The minimum no of tickets needed to sell for the car to be won is 5611 which at £4.99 raises £27998.
If the dealer sells 5610 tickets, the car isn't won but 70% of the money raised goes to the winner, so presumably the remaining £8397 goes to the dealer, plus they get to keep the car.
I bet they hope they only sell 5610 ticket or less.
I wonder how they audit the number of tickets sold
How to make your assets work for you.
This is exactly what the win a house do, if too low sales, winner gets £10k rest is classed as admin charges!If the dealer sells 5610 tickets, the car isn't won but 70% of the money raised goes to the winner, so presumably the remaining £8397 goes to the dealer, plus they get to keep the car.
I bet they hope they only sell 5610 ticket or less.
I wonder how they audit the number of tickets sold
How to make your assets work for you.
SteBrown91 said:
Monkeylegend said:
Not being hostile but looking at similar cars on PH with much lower mileage this one is about £10k overpriced if all tickets sell, so quite a good little earner with very little comeback it seems.
Isn’t that the point of the raffles?Well this guy is putting a £13/14k mark up and even if the car doesn't sell, for every £4.99 ticket he sells he is taking 30%.
A good business model but don't tell everyone they will go apes
t 
It's just a vailed way of selling something for far in excess of the market value with no comeback.
There are lots of these so called competitions/raffels all over social media, selling tractors,kit cars HGV lorries and just about anything.
It's a massive money earner for the organizers. Just look on Companies House website and see what they are making, millions every year and growing.
People selling these vehicles are not operating under the normal laws and regulations for selling vehicles, or anything else for that matter.
There are two winners. The organizer and the winning ticket holder.
There are thousands of losers.
There are lots of these so called competitions/raffels all over social media, selling tractors,kit cars HGV lorries and just about anything.
It's a massive money earner for the organizers. Just look on Companies House website and see what they are making, millions every year and growing.
People selling these vehicles are not operating under the normal laws and regulations for selling vehicles, or anything else for that matter.
There are two winners. The organizer and the winning ticket holder.
There are thousands of losers.
Monkeylegend said:
Do you ever recall reading threads about rip off car dealers who put a £2k mark up on their trade in to sell a car.
Well this guy is putting a £13/14k mark up and even if the car doesn't sell, for every £4.99 ticket he sells he is taking 30%.
A good business model but don't tell everyone they will go apest
They aren’t putting 13k markup on the car as they aren’t selling the car 13k above its value.Well this guy is putting a £13/14k mark up and even if the car doesn't sell, for every £4.99 ticket he sells he is taking 30%.
A good business model but don't tell everyone they will go apes
t They are selling a ticket for a tenner or whatever for the chance to win it. You could win a 20 grand car for a tenner. You are probably going to get nothing. Thats how raffles have always worked. There’s nothing shady, it’s all in the T&Cs.
Do you kick off at your village fete because they raise a grand in the raffle but the top prize is just an 8 quid bottle of Prosecco?
Gambling is a funny thing.
I'm not into it, but I expect some gamblers will point the finger at my beer and wine consumption.
If paying £5 for the dream of winning a car makes you happy, enjoy.
Personally, it does nothing for me.
Partly because I never win anything, all those RNLI raffles or whatever, you get your arm twisted to buy tickets, in about 40 years, I've won a goose which was inedible and a bottle of sherry which made a neighbour throw up on my lawn.
I can imagine a few sad cases spending a lot they can't afford on tickets for every raffle and lottery.
I've also seen raffles for houses.
A lot of Putins making money out of this.
I'm not into it, but I expect some gamblers will point the finger at my beer and wine consumption.
If paying £5 for the dream of winning a car makes you happy, enjoy.
Personally, it does nothing for me.
Partly because I never win anything, all those RNLI raffles or whatever, you get your arm twisted to buy tickets, in about 40 years, I've won a goose which was inedible and a bottle of sherry which made a neighbour throw up on my lawn.
I can imagine a few sad cases spending a lot they can't afford on tickets for every raffle and lottery.
I've also seen raffles for houses.
A lot of Putins making money out of this.
SteBrown91 said:
They aren’t putting 13k markup on the car as they aren’t selling the car 13k above its value.
They are selling a ticket for a tenner or whatever for the chance to win it. You could win a 20 grand car for a tenner. You are probably going to get nothing. Thats how raffles have always worked. There’s nothing shady, it’s all in the T&Cs.
Do you kick off at your village fete because they raise a grand in the raffle but the top prize is just an 8 quid bottle of Prosecco?
Read Kestrals post above They are selling a ticket for a tenner or whatever for the chance to win it. You could win a 20 grand car for a tenner. You are probably going to get nothing. Thats how raffles have always worked. There’s nothing shady, it’s all in the T&Cs.
Do you kick off at your village fete because they raise a grand in the raffle but the top prize is just an 8 quid bottle of Prosecco?
Monkeylegend said:
Read Kestrals post above
Again, I don’t see what the shock is. Its how raffles have always worked.The national lottery you enter to win 6 million but they take significantly more in ticket sales.
I don’t know what you are getting frothy about. If you don’t like it don’t enter. I don’t. But maybe one day if I liked the look of a car enough I might do.
I don’t normally do the euro millions, but if its “someone must win this triple rollover” I might get a lucky dip. I probably won’t win, but for the sake of 2 quid it’s worth a punt.
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