Buy 2 let cars scam? |
Buy 2 let cars scam? |
Thu, 3 Apr 2014 - 21:34
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#1
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Member Group: Members Posts: 671 Joined: 22 Mar 2007 Member No.: 11,275 |
Does anyone understand their business model, they seem to be spending an awful lot of money on advertising, but I can't see how it works.
You buy a car for 13k they rent it for you and pay you £250 per month for 3 years, backed up by your 'asset' and at the end of the term they give you 8k for a car that's worth probably 4 at best, maybe I've missed something |
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Sun, 17 Aug 2014 - 22:36
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#21
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Member Group: Members Posts: 2,784 Joined: 20 Apr 2008 Member No.: 18,956 |
OK as long as you get in and out at the right time!
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Advertisement |
Sun, 17 Aug 2014 - 22:36
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Advertise here! |
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Wed, 20 Aug 2014 - 20:43
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#22
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New Member Group: Members Posts: 1 Joined: 20 Aug 2014 Member No.: 72,615 |
Hi everyone - this is my first (and possibly only) contribution to this forum and it just happens to be on B2L Cars who I have been 'watching' for a while now. I run a small private hire business (a mini- Addison Lee if you like), and we are doing a form of peer-2-peer/buy to let cars ourselves. We currently have three cars which have been bought by private individuals, all personal customers of ours. We 'sort of' came up with the idea as a fluke after a conversation with the first of these customers nearly two years ago when no one would touch such low-life scum as ..... ugh! ... taxi drivers when it came to car finance. The way we do this is the customer/investor says how much they want to pay for a car (we having given them an fair idea of what we are looking for) and we then go out and buy it - the customer actually coming with us in 2 our of the three cases to buy the car!
We take the figure the car costs us, add 10% pa. for three years on a simple interest basis, and then pay that to the customer/investor over 36 months. Our first car bought this way was a Vauxhall Insignia we bought at auction for £8,600. So, add the 3 years at 10% and the monthly payments to the investor/customer (which are made under a rental agreement - NOT a lease) are £310.56pcm. The car is owned by the investor/customer, but our name is on the V5 as we are the registered keeper (there is now a red band on all V5's clearly stating that the document is NOT proof of ownership). we have a formal rental agreement with the customer as all of this is required by: the licensing authority, the insurers, the tax man et al... At the end of the 36 months, the car will be sold and the investor/customer obviously gets whatever the car makes at sale. Bearing in mind we put a LOT of miles on these cars, we estimate a value of no more than 25% of the purchase price, so AT MOST £2,150 coming back to the cust/investor. They will have made a genuine £4730 on their original investment on this car (£2150 end value plus £2580 in interest on the original £8600 outlay). The other two we have are on exactly the same basis, but both cost slightly more. It works for us - and it works for the people who have given us their trust and put their money in - and we were very realistic about the returns. A %age rate which is, to be honest, very good for us (people in our game often pay 15% and more) and gives an attractive, but NOT 'too good to be true' return for the cust/investor. This is where I can't get my head around what B2L Cars are offering:- one of their £13k cars at the 11% they claim would generate £480pm - not the £250 they pay the investor. So where is the other £230pm going? And how can they pay over £8k after 3 years to the investor on a £13k car? Something - like the clutch in my car right now - doesn't 'smell right'.... Anyone care to enlighten me? |
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