Buy2LetCars.com

Blarm

Anyone have any knowledge of Buy2LetCars.com.

They offer an 11% return.

Seems to good to be true so probably is.

bigoll

Heard the advert on the radio and looked at their website but I can't figure our their business model - they act as the car salesman, you effectively take the place of the car finance company and lend the cash (significant lump sum), then take the regular repayments from the car buyer. The idea being you get your money back plus x% finance interest, while your security is the car. But given the car will halve in value as soon as it's driven away, I don't see how it works as security for the total value you put into the scheme.

Ark_Welder

Well, there does look to be a valid Consumer Credit Licence in operation, and one would be required to administer the p2p lending aspects of the operation. Relevant company name on the licence is Raedex Consortium Limited.

You can put the CCL number at the bottom of their web-page into the OFT's register search:

http://www2.crw.gov.uk/pr/default.aspx

There are a couple of other businesses operated from the same address with the same director. Not sure if that is relevant or not, but just bringing it to attention. Looks to be a new operation, just about 1 year old, so not much of a track record to go on.

So, it comes down to whether you feel that buying a car with the intention of leasing it out is likely to provide an appropriate return. Perhaps, look at what the competition is as a start, and the geographic area(s) in which this company operates.

Personally, I can think of safer ways to do p2p lending, and with smaller amounts. But possibly resulting in a lower return too.

Hard to say much more than that.

donkingkong

So I've just watched the video. So the driver is responsible for the insurance of the car, what if they don't insure/under insure? Asset backed is great until it's in a cube after a crash I guess?

lawstudent

You have to ask yourself if you're getting 11% interest how reliable is the person who gets finance for a car at 11% or probably a higher percentage once deductions have been made by this company.

knuckledragger

11% p.a. return on your investment which after 3 years will be worth 50% of what you originally purchased. Sounds like a bargain, sign me up! :rotfl:

jimjames

lawstudent wrote: »

You have to ask yourself if you're getting 11% interest how reliable is the person who gets finance for a car at 11% or probably a higher percentage once deductions have been made by this company.

Reminds me of the TV adverts for a company advertising "good old fashioned loans" that claim they don't use credit scoring. Except they say you need a guarantor which makes your own score irrelevant anyway. If your credit score is shot that you can't get a loan yourself then I'd be wary about being guarantor for that money and the likelihood of being called on to pay off the loan.

So I'm out.