Investing in The Car Crowd

Yellabowley

Evening all,

I was just wondering if anyone had any experience of ‘The Car Crowd’? I am starting to build up some monthly savings and have decided to keep half in a savings account earning interest, but with the other half, do something with a higher risk/reward. I have no interest in crypto but I have been looking at various other methods of investing. The one that caught my eye was The Car Crowd. I am a bit car mad and consider myself quite knowledgeable when it comes to future car values. I have made money on cars in the past by identifying appreciating models, but I’ve never had the money or the space spare to do it properly.

With the car crowd, they buy the car but then investors buy shares in that car and the company store and service it. The owners then vote on when to sell it and then everyone shares the profit. They are registered with the FCA but I don’t really know whether I need to look for any other assurances?

They seem to buy a car a month that they believe to be an appreciating asset, and then you choose which you want to invest in. As I’m going for a higher risk investment I figured this might actually be enjoyable at the same time, which I don’t think you can say for many investments. At the end of the days the type of cars I would be investing in will never be worthless so I’m not so much worried about the investment, it’s more about what happens if they run into financial trouble or go bankrupt etc. and how much cover the FCA provide.

I’m a naturally cautious person and I’m venturing into new territory so any advice would be much appreciated. I have very little experience in investing so don’t worry about teaching me suck eggs. There may well be eggs I am yet to suck!!

Thanks in advance.

eskbanker

Yellabowley said:

They are registered with the FCA but I don’t really know whether I need to look for any other assurances?

[...]

it’s more about what happens if they run into financial trouble or go bankrupt etc. and how much cover the FCA provide.

Admittedly from a cursory look at their website, I can't see anything that would indicate the FCA actually providing any cover as such in the event the company folds, although there is apparently temporary FSCS protection before your money is actually invested:

Are you Regulated by the Financial Conduct Authority?

TheCarCrowd LTD is an Appointed Representative of Kession Capital LTD, who are regulated by the Financial Conduct Authority (FRN 582160). As such, we are required by law to conform to all relevant FCA regulation incluiding: acting responsibly, around marketing investments, remaining transparent about how we work, and never making false promises about returns on investments.

Am I protected under the Financial Services Compensation Scheme (FSCS)?

Whilst a car is funding your money is held within your personal investment wallet on the Goji Investments platform. Goji are fully regulated by the FCA which means should TheCarCrowd become insolvent during this time your funds are protected by the Financial Services Compensation Scheme up to £85,000.

Cus

Looks interesting on the website but I don't like the idea that the car is not sold unless the share holders want to.  Could you exit when you want?

Yellabowley

Yeah not sure what that means if they were to go bust after I have shares in a car, as clearly there would be an asset sat in their storage facility that could be sold, but would any of that money find it’s way back to me?

masonic

Yellabowley said:

At the end of the days the type of cars I would be investing in will never be worthless so I’m not so much worried about the investment, it’s more about what happens if they run into financial trouble or go bankrupt etc. and how much cover the FCA provide.

Don't forget about the possibility cars do a disappearing act.

wmb194

Yellabowley said:

Yeah not sure what that means if they were to go bust after I have shares in a car, as clearly there would be an asset sat in their storage facility that could be sold, but would any of that money find it’s way back to me?

Have you not read through the website? It says each car will have its own limited company.

This is exceptionally high risk - these are portable assets after all - and it's run by a micro company, just look it up on Companies House. 

If you want to invest in cars it might be better to look at listed companies e.g., Ferrari, VW, Daimler.

Yellabowley

wmb194 said:

Yellabowley said:

Yeah not sure what that means if they were to go bust after I have shares in a car, as clearly there would be an asset sat in their storage facility that could be sold, but would any of that money find it’s way back to me?

Have you not read through the website? It says each car will have its own limited company.

This is exceptionally high risk - these are portable assets after all - and it's run by a micro company, just look it up on Companies House. 

If you want to invest in cars it might be better to look at listed companies e.g., Ferrari, VW, Daimler.

I hadn’t seen this bit. I’ve got no interest in buying shares specifically in car companies as I wouldn’t have any knowledge of where they’re going. I was just hopeful that this might be an interesting way to invest in classics. But then I came here as I was wondering if it was too good to be true. Would appear it might be.

Yellabowley

Cus said:

Looks interesting on the website but I don't like the idea that the car is not sold unless the share holders want to.  Could you exit when you want?

Yeah you can sell your shares at any point. Presuming there are buyers out there.

canaldumidi

Yellabowley said:

...... decided to keep half in a savings account earning interest, but with the other half, do something with a higher risk/reward.....

As I’m going for a higher risk investment I figured this might actually be enjoyable at the same time, ...

Depends what you mean by 'higher risk'. On a scale of risk, your savings account is firmly at the extreme low risk end. The Car Crowd is way up towards the far end. There are a multitude of potential investment choices in between at varying degrees of risk, though admitedly less 'fun'.

So long as you understand that.........

ChesterDog

Sounds rather like The House Crowd (in its original form, where SPVs bought and operated BTLs).

The House Crowd is currently in administration and has been for some time, with investors still waiting to see how much might be repaid to them.

Yellabowley

ChesterDog said:

Sounds rather like The House Crowd (in its original form, where SPVs bought and operated BTLs).

The House Crowd is currently in administration and has been for some time, with investors still waiting to see how much might be repaid to them.

Ah that’s about as bad of a sign as I could have asked for. Cheers.