ben
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Post by ben on Apr 19, 2016 11:14:20 GMT
I hope these loans have very good insurance
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Post by mrclondon on Apr 19, 2016 11:21:28 GMT
I hope these loans have very good insurance Why ?
The details state they are stored in the RCC secure compound, and whilst the first loans are cars, the potential assets available for loans from this partner is far wider than just cars.
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stevio
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Post by stevio on Apr 19, 2016 11:22:04 GMT
Hi MoneyThing Thank you for bringing in ANOTHER new partner - really nice to get the diversity Few quick questions: - Are the cars used for racing during the length of the agreement or are they stored? If used, are they appropriately insured and maintained? - I imagine these cars would have a very limited lifespan - what is the depreciation like? - I imagine these would resale to only specialist buyers, whats the likelihood of achieving the asset value on sale? - Should the RCC partner fail, would MT have legal rights to sell the asset? - Do you have any more information on the RCC partner, how well they are doing, financials, guarantees of the larger AF business etc? Thanks
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oldgrumpy
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Post by oldgrumpy on Apr 19, 2016 11:47:03 GMT
Another new partner? Isn't it rather too close to AE to be considered that?
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Post by SophieThing on Apr 19, 2016 12:05:54 GMT
Hi MoneyThing Thank you for bringing in ANOTHER new partner - really nice to get the diversity Few quick questions: - Are the cars used for racing during the length of the agreement or are they stored? If used, are they appropriately insured and maintained? - I imagine these cars would have a very limited lifespan - what is the depreciation like? - I imagine these would resale to only specialist buyers, whats the likelihood of achieving the asset value on sale? - Should the RCC partner fail, would MT have legal rights to sell the asset? - Do you have any more information on the RCC partner, how well they are doing, financials, guarantees of the larger AF business etc? Thanks Hi Stevio, Thanks for your questions. I'll try and answer, but I've also asked the borrower for their input so I may add to my answer later. 1. No- the cars are stored securely for the duration of the loan. 2. The lifespan of race cars is different from road cars. What tends to happen is that top tier cars are used for premier racing and at the end of the season they are sold to second tier racers for their next season. In turn, they are sold to third tier and so on. The cars often end up in Europe/ Africa for the end of their racing life. They therefore don't depreciate in the same way. The total value quoted represents what they are worth to the next buyer. 3. The borrower has valued them and the price quoted they believe is achievable. Looking at other similar cars for sale, the prices seem fair and reasonable to us. There are specialist websites for selling racing cars which makes it easier to attract buyers. 4. Yes. We have a sub-charge over the chattels mortgage and we can sell the asset should we need to step in. 5. They are a new company and just getting started. We think the loans are well secured against the assets themselves and we didn't feel the need to seek additional security. The risk is reflected in the low LTV's. I hope that helps. Kind regards Sophie
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oldgrumpy
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Post by oldgrumpy on Apr 19, 2016 12:09:15 GMT
Naughty girl SophieThing !! You've named the borrower!! You'll lose your chocolate allowance and Mr Clondon will go purple.
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ben
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Post by ben on Apr 19, 2016 12:11:03 GMT
I hope these loans have very good insurance Why ?
The details state they are stored in the RCC secure compound, and whilst the first loans are cars, the potential assets available for loans from this partner is far wider than just cars.
I misread it I thought they were loaning the cars out (ie per race) rather then selling them.
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Post by SophieThing on Apr 19, 2016 12:11:23 GMT
Another new partner? Isn't it rather too close to AE to be considered that? Hi Oldgrumpy, RCC is a separate company. You are right it is close to AE, with common shareholders. We've been upfront about that, but we also wanted to distinguish between RCC loans and AE loans to make it clear and easy for lenders to understand- especially if we do more with both. Kind regards Sophie
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Post by SophieThing on Apr 19, 2016 12:14:06 GMT
Naughty girl SophieThing !! You've named the borrower!! You'll lose your chocolate allowance and Mr Clondon will go purple. Oops. Thank you for pointing that out. I read the forum all the time, but don't contribute very often..... Ed is forum expert..... all corrected now. Kind regards, Sophie
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davex
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Post by davex on Apr 19, 2016 12:17:39 GMT
Oh good, Another justification to put more funds into MT, if only for diversification. It may be a bit "close" to the parent company, but I trust the things to do right by my hard earned pennies.
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ben
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Post by ben on Apr 19, 2016 12:29:40 GMT
Not to bothered that it is linked to another company
What happens when they get written off are they fully insured for the value stated to us or are they differently valued due to them being used for racing
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Post by SophieThing on Apr 19, 2016 13:03:49 GMT
Not to bothered that it is linked to another company
What happens when they get written off are they fully insured for the value stated to us or are they differently valued due to them being used for racing Hi Ben, Thanks for your question. The cars are in secure storage for the duration of the loan and will not be used for racing during the term. Kind regards Sophie
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Post by SophieThing on Apr 19, 2016 19:26:06 GMT
Hi MoneyThing Thank you for bringing in ANOTHER new partner - really nice to get the diversity Few quick questions: - Are the cars used for racing during the length of the agreement or are they stored? If used, are they appropriately insured and maintained? - I imagine these cars would have a very limited lifespan - what is the depreciation like? - I imagine these would resale to only specialist buyers, whats the likelihood of achieving the asset value on sale? - Should the RCC partner fail, would MT have legal rights to sell the asset? - Do you have any more information on the RCC partner, how well they are doing, financials, guarantees of the larger AF business etc? Thanks Hi Stevio, Thanks for your questions. I'll try and answer, but I've also asked the borrower for their input so I may add to my answer later. 1. No- the cars are stored securely for the duration of the loan. 2. The lifespan of race cars is different from road cars. What tends to happen is that top tier cars are used for premier racing and at the end of the season they are sold to second tier racers for their next season. In turn, they are sold to third tier and so on. The cars often end up in Europe/ Africa for the end of their racing life. They therefore don't depreciate in the same way. The total value quoted represents what they are worth to the next buyer. 3. The borrower has valued them and the price quoted they believe is achievable. Looking at other similar cars for sale, the prices seem fair and reasonable to us. There are specialist websites for selling racing cars which makes it easier to attract buyers. 4. Yes. We have a sub-charge over the chattels mortgage and we can sell the asset should we need to step in. 5. They are a new company and just getting started. We think the loans are well secured against the assets themselves and we didn't feel the need to seek additional security. The risk is reflected in the low LTV's. I hope that helps. Kind regards Sophie In addition, on the point regarding depreciation, RCC have said: The lifespan is not that limited, you have main stream professional motorsport which these cars fit, then it cascades down to club motorsport and then collectors, so there is always a market place for them be it at different levels of motorsport. Depreciation is minimal within this market, they depreciate from new to first year usually around 15%. On the point regarding sales, RCC have specialise auctions that they can put the cars in if necessary. I hope that helps. Kind regards, Sophie
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jfm
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Post by jfm on Apr 19, 2016 19:26:56 GMT
I might have thought summer was the racing season, so if for sale to the next tier why wait until autumn?
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baz657
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Post by baz657 on Apr 20, 2016 4:08:51 GMT
I might have thought summer was the racing season, so if for sale to the next tier why wait until autumn? From the MT loan details page:- This loan has a six month term and it is expected that the cars will be sold within that timeframe and provide an exit to lenders.
The likelyhood is that the term will be less than six months.
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