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  • Entrepreneurs

    Buy 2 Let Cars - Worth a punt?

    Has anyone come across this site and used it as an investment vehicle ( pun intended)
    Is it worth a punt?

    http://www.buy2letcars.com

    Two opportunities.......................

    1) You buy a car for about 15K someone leases it and this company manages it all for you and guarantees you a 33% return.

    2) You run it as a virtual fleet business and earn between 32K and 250K p.a

    Having always had it been drummed into me that cars are a liability not an asset can we start viewing the cars we drive as a potential alternative investment.
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    Jonathan Clarke. http://www.buytoletmk.com
    (15-08-2012 03:11 AM)Jonathan Clarke Wrote:  Has anyone come across this site and used it as an investment vehicle ( pun intended)
    Is it worth a punt?

    http://www.buy2letcars.com

    Two opportunities.......................

    1) You buy a car for about 15K someone leases it and this company manages it all for you and guarantees you a 33% return.

    2) You run it as a virtual fleet business and earn between 32K and 250K p.a

    Having always had it been drummed into me that cars are a liability not an asset can we start viewing the cars we drive as a potential alternative investment.

    I think you might find the cars disappearing off to Nigeria etc!!!
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    Jonathan,

    The guaranteed return is suspect. First, because a guarantee can only be as good as the company that is making the statement. Second, a financial guarantee on an investment is normally FSA regulated and I suspect a cal leasing company does not know this.

    Cars depreciate. That does not mean that companies that finance then do poorly. It just means the asset goes down in value. Similar to any machine actually. If the company charges enough they can turn a profit.
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    John Corey

    
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    Where would you stand if the car were damaged in an accident?

    What happens if the car was wrote off in an accident? Insurance Companies do not normally pay out the full purchase cost.

    I like to buy my cars from British Car Auctions. You find a lot of ex lease hire cars there when they are three years old. My thoughts on this are your investment needs to return in full before the 3 years are up.

    Phone around companies that lease out cars and ask what are the oldest cars that they have on their fleet.
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    I would be nervous of this.

    Car hire is a very ruthless and cut-throat business.

    People damage cars and try and hide the damage, they abandon them in far flung places, they abuse them.

    Only a company with a track record of dealing with this and having processes in place to minimise risks should really get involved.
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    Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **Book your FREE portfolio review and health check with Property Tribes Financial Services**

    (15-08-2012 09:24 AM)vanessa warwick Wrote:  I would be nervous of this.

    Car hire is a very ruthless and cut-throat business.

    People damage cars and try and hide the damage, they abandon them in far flung places, they abuse them.

    Only a company with a track record of dealing with this and having processes in place to minimise risks should really get involved.

    Vanessa,

    At a high level I would think the example Jonathan shared is similar to the holiday camper model you shared about a year ago.

    There would be operating expenses and other issues. A company with a proven history likely has the model sorted. Then again, a company that was profitable in the past can go bust if specific things happen or the market changes.
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    John Corey

    
Share your questions, learn from mistakes & crowdsource answers to your questions -> http://www.propertyfortress.com/community/
    Follow me on Twitter-> www.twitter.com/john_corey
    My blog -> www.PropertyFortress.com/blog
    RE investing discussions happening monthly in London, 2nd Tuesday of the month -> meetup.com/real-estate-advice
    I can see there is a business concept there and presumably they have accidents wear and tear etc covered. The end user insures it. But looking at their FAQ`s i see the 33% is over 3 years so the attraction is not nearly as good as i thought at first. You have to pay for the road fund licence in year 2&3. As John / Vanessa says a guarantee is only as good as the track record of the company. Do they offload that risk I wonder.

    To find out more you have to attend a meeting in London. That will be a hard sell I suspect with a pressure sign up at the end. They say they have exceeded their targets as an inducement. They dont state what their target was though.
    If the target was 1 they have probably been successful .

    It reminds me of my school teacher whose favorite put down to me was.......
    Clarke sets his targets very low and consistently fails to achieve them .

    I sometimes think about buying a classic car as an asset which will appreciate. Or buying a roller/ limo and hiring out for weddings etc. If you were 20 and could second guess what would be a classic car in 40 years time you could buy one shrinkwrap it to protect it and store it. On your 60th birthday sell it and use the proceeds as your pension. I`m so annoyed I sold my lovely morris minor for £30 in 1978 after an accident and i didnt want to repair at the time
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    Jonathan Clarke. http://www.buytoletmk.com
    (15-08-2012 10:31 AM)Jonathan Clarke Wrote:  It reminds me of my school teacher whose favorite put down to me was.......
    Clarke sets his targets very low and consistently fails to achieve them .


    BRILLIANT! Very funny!

    One of my teachers told my parents; "Lisa will make good checkout girl material and if she achieves that level in life you should be proud!" Nice!
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    Lisa

    All comments are for education and information purposes only and do not construe as advice or a financial promotion. No liability is accepted for comments made. If you wish to receive information in an advisory capacity then please contact me about becoming a client.

    www.keys-mortgages.com
    (30-09-2012 12:38 PM)Lisa Orme Wrote:  
    (15-08-2012 10:31 AM)Jonathan Clarke Wrote:  It reminds me of my school teacher whose favorite put down to me was.......
    Clarke sets his targets very low and consistently fails to achieve them .


    BRILLIANT! Very funny!

    One of my teachers told my parents; "Lisa will make good checkout girl material and if she achieves that level in life you should be proud!" Nice!

    Lol - yes very motivational for you!

    Teachers are an occupational hazard arent they. In a chemistry exam the workbook I had had the answers at the back but the relevant pages had been crudely stuck down in such a manner that you couldnt read them. Spoil sports. So when the teachers back was turned as he walked up and down the aisle checking on us i naturally spent my time with my boy scouts penknife trying to prise the pages apart. My technique was not perfected yet and I got caught. I chose the slipper over the cane that time for punishment.

    That was not so much of a problem though I have a high pain threshold but it was the dreaded school report that my parents would see that I was worried about.

    It said ` Chemistry - E3 - `Tries to hide his idleness by cheating`

    Ouch
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    Jonathan Clarke. http://www.buytoletmk.com
    (30-09-2012 12:38 PM)Lisa Orme Wrote:  
    (15-08-2012 10:31 AM)Jonathan Clarke Wrote:  It reminds me of my school teacher whose favorite put down to me was.......
    Clarke sets his targets very low and consistently fails to achieve them .


    BRILLIANT! Very funny!

    One of my teachers told my parents; "Lisa will make good checkout girl material and if she achieves that level in life you should be proud!" Nice!


    So funny. My teachers said I could get a job in Boots! I did indeed as a Saturday girl. I think teachers want you to get stuck in their rut. They don't know any other route. Many parents are like this too believe it or not. They do not want their children to do better than them. They get envious. It's hard for those kids. My maths teacher always believed in my however. If only I could remember his name I would go and look him up.
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    Trying to provide decent homes for decent people
    This is pretty interesting but Car's loose their value as soon as they are taken off of the forecourt and continue to drop in value.

    We are all used to property, in which the value tends to increase. (Well we hope it does). With cars we know the value decreases.

    P.S. People are talking about Guarantees, this company was EST in 2011 by Stalina Elba. It has filed no accounts, so please take the Guarantee with a grain of salt. Unless it is backed up by a major insurer policy.
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