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Mogo
Jun 19, 2016 18:44:47 GMT
Post by dentex on Jun 19, 2016 18:44:47 GMT
Mogo is one of the biggest loan originators at mintos. typically offers 61 month loans. Most of the cars are from 2006 or less, so we are speaking about 9 or less years old second hand cars. Considering that LTV value of the loans is normally between 70-80% and that cars are one of the goods that loses value more quickly. I would like to ask for the investors in this forum, do you really think it´s a good investment? Is it an adeccuate collaterral for a 5 -6 year loan? I know it´s a buy back guarantee, but it´s really still a solid investment considering how quick cars do lose value?
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Mogo
Jun 19, 2016 21:35:40 GMT
Post by saraph on Jun 19, 2016 21:35:40 GMT
I don't really have an opinion about this, but statistics page can provide you with some insight about how car loans do compared to other types. From people's portfolios I've seen so far, Mogo loans made 70% or more of their investments. I'm not an exception.
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Mogo
Jun 20, 2016 5:16:16 GMT
Post by maus on Jun 20, 2016 5:16:16 GMT
Over time the loan principal is reduced too along with decline value of the car.
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Mogo
Jul 6, 2016 23:11:23 GMT
Post by Whitbourne on Jul 6, 2016 23:11:23 GMT
This is a good question. In my view, because of the buyback guarantee you are not investing in cars, you are investing in Mogo. So long as the guarantee holds good, what do I care about the car? In fact, Mogo's balance sheet www.mintos.com/mogo_financials.pdf does not fill me with confidence. So I have limited exposure to cars, using Auto Invest to set the limit and also specify loans of 3 years or less, for exactly the reason that you state. I prefer the personal loans, again using Auto Invest to ensure a quick reinvestment.
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Mogo
Jul 16, 2016 22:17:45 GMT
Post by littleinvestor on Jul 16, 2016 22:17:45 GMT
I think Mogo loans can hardly go wrong. They first lease out the car to business, then lease it out again to individuals after the businesses already have paid of the value of the car. Bear in mind that unlike in Western Europe, it is much more common in other areas of Europe to drive cars of 10+ years old. I don't see issues in their balance sheet, as long their assets cover their immediate liabilities mogofinance.com/assets/2015_ar_en_eur_00_ias-42d608db2a06803488124657ce2e5db7ca9019e8b7dd06262e12d81119148ca9.pdf (I hate to invest in them though due to the long duration's and low second market sell rate)
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