Buy2Letcars.com

Great return from 9 to 11%

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Any of my fellow accountants looked into this? Fantastic returns. I looked at it 4 years ago and left it as I thought it could be some kind of a pyramid

I am now tempted to invest .

 

Replies (10)

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By WhichTyler
05th Aug 2016 14:47

Buy 2 let cars has b/s value of £100 according to its Dec 2014 unaudited abbreviated accounts and has nevermade a profit. Its parent company is b/s insolvent to the tune of -£2.1m (again unaudited, abbreviated accounts). The are entirely unregulated and no compensation is available if they go bust. the usual question is: if this business is so good, why do they need your money?

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Replying to fawltybasil2575:
RLI
By lionofludesch
05th Aug 2016 17:57

"Shoe-in" makes no sense, Basil.

Surely "shoo-in" is the expression you seek.

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By mrme89
05th Aug 2016 18:04

A quick search in the Internet reveals this is not a scam. Or at least not an intentional scam.
It seems to be well documented that this is high return and high risk.
With a minimum investment of £13,500 (?), enter the scheme at your own risk.

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By SKCOX
05th Aug 2016 22:33

Duplicate!

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By SKCOX
05th Aug 2016 22:32

Flagging :-)

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By Martin B
08th Aug 2016 10:00

Thank you all for your replies. I have been told to date not a single default and no investor has lost out. Not sure of want value this is, but if the business fails the leased vehicle ( for which investor will have title) will be delivered to their door .
Many 100's of investors are on board.
I will give it a miss again but it is tempting.

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Replying to Martin B:
paddle steamer
By DJKL
08th Aug 2016 10:43

How does that work?

The company is leasing it to the end user. If the company fails but the end user has not defaulted on his/her payments then surely the end user continues to be entitled to make use of the asset?

Insofar as I can see the "lender" to the leasing company holds a security over the asset "the car" but if it all goes wrong with the leasing company then on a practical level how does the investor ensure leasing payments by end user now go to him/her rather than to leasing company?

Having said that leasing company appears to be a shell that acts as asset/liability custodian (hence constant £100 equity) where no doubt rentals received flow in, part is intromitted to lender and part to director's own company as presumably some sort of fee to generate no profit.

Given rate of return/risk I think I will stick with my Shell shares yielding a tad over 7%, albeit with all the uncertainties of future oil prices and sustainability of dividend (But with a record of never cutting since WW2)

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Replying to Martin B:
By cheekychappy
08th Aug 2016 11:07

Martin B wrote:

Thank you all for your replies. I have been told to date not a single default and no investor has lost out. Not sure of want value this is, but if the business fails the leased vehicle ( for which investor will have title) will be delivered to their door .
Many 100's of investors are on board.
I will give it a miss again but it is tempting.

Well if those nice people wanting a large sum of money from you told you that, it must be true.

How easy do you think it will be to get the vehicle back? Do you not think that there will be a cost in retrieving said vehicle?

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Replying to Martin B:
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By WhichTyler
03rd Jan 2017 16:36

the 2015 (unaudited) accounts say:

"The company is reliant on trading from its subsidiary undertaking Rent 2 Own Cars Limited. During 2014 R20 became a preferred supplier for Uber and the fulfilment of that contract through the demand in the marketplace should have resulted in increasing volumes towards break-even levels.
Unfortunately, during 2015, this contract has proved difficult to fulfil at the anticipated profit margin and the directors have taken the decision to refocus the business. At the same time the directors were considering offers from Venture Capitalists to recapitalise the business. However the terms and conditions offered proved not to be acceptable to the Board. The directors are taking a number of initiatives to increase trading volumes and profit margins including: Utilisation of excess PCO (taxi) inventory by hiring out on a short term basis via a leading third party operator; and Extending the existing private customer business model in two distinct ways to cater for customers with a lower monthly budget

• Utilise cars returned at the end of their 3 year lease by re-letting them for a further period Purchase of used cars at auction and reselling on Hire Purchase to customers whose preference is to own their car at the end of the finance period The directors have extensively reviewed the forecasts for the period to 31st December 2017, which include these initiatives. The projections forecast that the business will achieve profitability (Profit Before Tax) in the last quarter of 2017. Earnings before Interest Tax Depreciation and Amortisation (EBITDA) will be positive throughout the year. It will be necessary for the company to maintain the projected level of loans from investors and sales activity to meet its working capital requirements Based on the above, the directors consider it appropriate that the financial statements have been prepared on the going concern basis. The financial statements do not include any adjustments that would result if the company were unable to continue as a going concern."

I wouldn't touch it with yours, as they say...

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By AM2000
08th Jul 2022 11:56

Has anyone had any experience in claiming capital losses on investment with buy2letcars.com (Raedex Consortium Limited) with HMRC as they are possibly in administration? if so which tax year should they be claimed?

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