Car Raffle

pyrocrafter

My son has built (over the last 4 years) a Classic style Road legal, track day mini with an RSX1300R Hayabusa engine, ready to be registered on an 09 plate. It cost over £20k to build and he needs to sell it to pay back his dad.

In these difficult economic times however, no one wants to fork out such a large amount of money for a 'boys toy', so he had the bright idea of raffling it. The only thing is, if people are interested, what sort of cost should a ticket be? And how do you convince people that it's not some sort of 'scam'. If anyone has any bright ideas on the subject, it would be appreciated.

hellypelly

I have seen a rafflelike this before for a house and fishing lake Imsure they had trouble getting it through the competition regulators I will check and let you know if I find the site I stumbled on.

http://www.telegraph.co.uk/finance/economics/houseprices/3210702/Homeowner-forced-to-postpone-raffle-sale-of-1m-estate.html
The telegraph reporting on it
http://www.offplanpropertyexchange.com/forum/uk-property-real-estate-investment-forum/1856-oldborough-fishing-retreat-raffle-cancelled.html
read this you might get some ideas Hope this helps.

pyrocrafter

That's great, thanks. I'll go look at the links.

pyrocrafter

I've just found this useful site Out-law dot com (sorry not allowed to insert the link) and I think it probably means if he wants to do this raffle, a licence will be needed as it is for personal gain. So, this will probably be a 'no goer'
Here's a few points if anyone's interested.

Incidental non-commercial lotteries – typically raffles at one-off charity fundraising events – are, generally speaking, exempt under the 2005 Gambling Act provided certain conditions are met. These conditions, which are similar to the old law, are as follows:

• the lottery is incidental to an event which is not (and is not intended to be) profit making, and the lottery is not promoted for private gain;
• the organisers do not deduct from the proceeds of the raffle more than the prescribed sum in respect of prizes (currently £500) or other costs (currently £100);
• there is no rollover;
• tickets are supplied only at the location where the related event takes place and only during that event; and
• the results are announced at or before the end of the related event.

The 2005 Gambling Act introduced a new exemption for customer lotteries, but the conditions for exemption mean this is unlikely to be very useful in practice. These conditions include the following:

• a maximum win of £50 per ticket;
• tickets must be supplied only to people who are on the promoter's business premises as customers;
• no advertisement outside the business premises.
• no profits may be made;
• no rollover; and
• not more than one draw in any 7 day period.

DKLS

I have no idea about the raffle aspect.
But Pistonheads has a section devoted to bike powered cars here
There is one old shape mini up for 13.5k. Might Appeal to a petrol head for whom 20K is petty cash and a viable alternative to an Atom.

p00hsticks

As other posters have said you can't hold a raffle - it woudl have to have the element of skill required to make it a 'prize competition', approved by the gambling commission

http://www.gamblingcommission.gov.uk/Client/detail.asp?ContentId=194

I've only ever heard of these in relation to houses, but to my knowledge there's never been one of those that has successfully worked -I'm only aware of one where they managed to sell all the tickets and then the gamblnig commission stepped in and stopped the draw (I'm not sure what the outcome was).

From the sound of it, by the time you add in the costs of running the competion, etc, your son would need to raise around £25,000.

So that's 25,000 tickets at £1 each, or 5,000 at £5 each or 2,500 at £10 each. That's an awful lot of tickets to have to sell, for something that is a bit of a white elephant in that it's presumably going to involve the winner in a lot of additional expense to tax, insure and run once they've won it.

Peersnally I can't see it being a goer, but if your son does go ahead two things he needs to consider is how long he runs the competition for - until all the tickets are sold or until a specified deadline ? And what will happen if he can't sell all the tickets by the deadline given ? Does he have to refund everyone or award a lesser prize instead ?

Rolandtheroadie

Just out of interest, how is it able to be registered as an 09 plate? Will it not be a Q plate?

goldspanners

scotsman4th wrote: »

Just out of interest, how is it able to be registered as an 09 plate? Will it not be a Q plate?

something tells me they dont do Q plates any more, but i doubt it would be an 09 plate aswell.