shimself
Member of DD Central
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Post by shimself on Jul 24, 2014 8:38:37 GMT
buy2letcars.com anyone? Feels like a car salesperson's spiel to me, but I'm happy to be put right.
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baz657
Member of DD Central
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Post by baz657 on Jul 24, 2014 9:27:07 GMT
8% flat is around (remembering from my dodgy old motor trade days) 15% APR - expensive financing compared to the deals already available from the main dealers which in turn will only attract higher risk borrowers. Also the used car market is so volatile that it's possible for a 6 month old vehicle to only be worth around 50% of cost new. Not forgetting you lose at least 20% the second you drive it away.
Not one for me.
Edited to add
Just lifted this from the website. Check out claim No 6 (made bold by me) - I want that technology!
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markr
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Post by markr on Jul 24, 2014 9:34:47 GMT
How would this investment be treated for tax? The worst case would be if all the repayments are taxed as income without offsetting the depreciation, and you haven't used your capital gains allowance in the third year when it's sold.
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Post by davee39 on Jul 24, 2014 9:46:33 GMT
Is FCA approval mentioned anywhere on the website?
No?
S ** M
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baz657
Member of DD Central
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Post by baz657 on Jul 24, 2014 9:55:07 GMT
Their sister website ( wheels4sure.com/ ) gives some more clues as to their borrowers profile.... |
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Post by batchoy on Jul 24, 2014 9:56:55 GMT
Is FCA approval mentioned anywhere on the website? No? S ** M They have permissions for a number of services but not P2P. Maybe my memory is playing tricks but didn't these guys withdraw from P2P went they got a large investment from a HNWI.
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Post by easteregg on Jul 24, 2014 11:05:38 GMT
I've spoken to Buy2Let cars several times. The interest rate to lenders is calculated at 9.98% for a £7k investment or 13.79% for a £13.5k investment. I also asked about FCA permission (all P2P companies are listed on the P2P money companies page) and they do have interim permission, but do not have "peer-to-peer lending" permission, but I was shown emails from the FCA stating that they view Buy2Let cars as outside "peer-to-peer" and therefore they do not need this permission.
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Investor
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Post by Investor on Jul 24, 2014 11:22:16 GMT
So many things I can see wrong with this but like their worked example best!!
"For example, let’s say you were to save £13,500.00 for three years with AB Bank at 2.35% pa locked away for three years. You would get back:
£13,500 (your principal) + £776 (your gain after tax) = £14,276 after 3 years.
Using the current change in CPI between 2009-2012 (3 years) of 12%, it translates to your £14,276 (after three years) having the same buying power as £12,562.88 in today’s money. In other words by locking your money away for three years at the current derisory savings rates you would have made a net loss £937.12 in buying power over three years!
That method will not get your money working harder than you worked for it.
By you becoming a buy2letcars client, it simply means you are funding the process of a brand new car (value £15-£16k) being leased out to an essential user. Over the three year leasing period you will gain £4,455 by way of 36 monthly income payments and a one off agreed buy back price."
1. If it is a "agreed buy back price" why not state what that figure is, they seem to take a stab at it in other areas of the website.
2. Have to love a worked example that factors in tax liability, and then further reduces value by factoring in CPI to hit the investement (why would they use a random three years that give a high inflation rate), so you lose £937.12. Yet on the other side of the equation, if you invest with them not only is there no mention of any tax liability, but mysteriously inflation over the three year term appears to be zero as well, so you 'gain' £4,455
Interestingly I can't find anything about the agreed buy back price. Is this supposed to be paid by the borrower, or the sale of the asset. If the former, they seem to imply that their customer base is made up of 'in most cases a key worker (nurse, police etc)' so would question their ability to repay a single completion fee of £8995.00. In fact if they had that sum available I would strongly suggest they just buy second hand on day one. If the latter I would be surprised given the current depreciation of the types of cars likely to be leased that the value would be this high after 3 yrs/ 45,000 miles.
Just my random thoughts but not one for me although I wish them well in their enterprise.
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niceguy37
Member of DD Central
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Post by niceguy37 on Jul 24, 2014 15:45:42 GMT
Is FCA approval mentioned anywhere on the website? No? S ** M They have permissions for a number of services but not P2P. Maybe my memory is playing tricks but didn't these guys withdraw from P2P went they got a large investment from a HNWI. If I'm not mistaken you might be thinking of One Stop Funding. I was with them, and found them excellent, but they have since stopped P2P lending.
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j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
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Post by j on Jul 27, 2014 18:18:43 GMT
So many things I can see wrong with this but like their worked example best!! "For example, let’s say you were to save £13,500.00 for three years with AB Bank at 2.35% pa locked away for three years. You would get back:
£13,500 (your principal) + £776 (your gain after tax) = £14,276 after 3 years.
Using the current change in CPI between 2009-2012 (3 years) of 12%, it translates to your £14,276 (after three years) having the same buying power as £12,562.88 in today’s money. In other words by locking your money away for three years at the current derisory savings rates you would have made a net loss £937.12 in buying power over three years!
That method will not get your money working harder than you worked for it.
By you becoming a buy2letcars client, it simply means you are funding the process of a brand new car (value £15-£16k) being leased out to an essential user. Over the three year leasing period you will gain £4,455 by way of 36 monthly income payments and a one off agreed buy back price."
1. If it is a "agreed buy back price" why not state what that figure is, they seem to take a stab at it in other areas of the website. 2. Have to love a worked example that factors in tax liability, and then further reduces value by factoring in CPI to hit the investement (why would they use a random three years that give a high inflation rate), so you lose £937.12. Yet on the other side of the equation, if you invest with them not only is there no mention of any tax liability, but mysteriously inflation over the three year term appears to be zero as well, so you 'gain' £4,455 Interestingly I can't find anything about the agreed buy back price. Is this supposed to be paid by the borrower, or the sale of the asset. If the former, they seem to imply that their customer base is made up of 'in most cases a key worker (nurse, police etc)' so would question their ability to repay a single completion fee of £8995.00. In fact if they had that sum available I would strongly suggest they just buy second hand on day one. If the latter I would be surprised given the current depreciation of the types of cars likely to be leased that the value would be this high after 3 yrs/ 45,000 miles. Just my random thoughts but not one for me although I wish them well in their enterprise. Very nicely worked out Investor, saved me trawling their website
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