Investing for Beginners

Investing money is not an easy decision to make, and returns don't come to you overnight. There are different investment channels and opportunities you can consider and choose, but with each one of them, there is no 100% guarantee that you would make your money back. There is always some risk involved in investing your money; you just have to figure out which channel is worth your time, money, and trust. If you are a beginner or just looking to explore the possibilities of investing your money, it's extremely important that you don't rush any decision due to the associated risks that come with investing your money. When you do not know what to do and where to invest your money, it's always a good idea to seek independent financial advice, so you know you're making the right decision. 

Existing Market

There is no doubt that there is an existing market for car ownership and leasing in the United Kingdom with 85% of people who prefer using a car to travel. When you look at the data of newly purchased cars in the UK, it shows that 80% of it comes from people who purchased their cars through finance companies or banks with loans. However, for people who have a bad credit rating, which is the majority of the population, because of specific reasons such as missing repayments on loans, credit card bills, mortgages, and more, it can be harder to secure car loans. Or if ever you do, you would be faced with really high-interest rates with poor payment terms. That is why car ownership isn't really viable for people with bad credit ratings. Which in reality, would be more affordable and easier to pay off on a month to month basis than through paying off an entire loan.

Car Leasing Partnership

When you invest your money with Buy2LetCars, you would, in essence, be lending your money to them so that they could use it to purchase a brand new car which they would use to lease out through their partner company, Wheels4Sure. Your investment will be for a period of three years, which is also equivalent to a car leasing term for drivers who suffer from bad credit ratings. There is no reason to worry because Wheels4Sure screens all of their applications and make sure that all of the drivers who get approved for a lease are able to afford the monthly payments they would have to pay. Drivers make a monthly payment for their lease so in turn, as an investor in Buy2LetCars, you would also enjoy a monthly stipend through your bank account for 36 months.

Investment Terms 

For the amount that you would be receiving for a period of 36 months, all of the payments are just to return or pay off your capital back, so it does not bear any added interest. After the 3-year period, on the 37th month as an investor, you will receive and enjoy a lump sum payment from Buy2LetCars where you would be able to get the full return value of your investment. With Buy2LetCars, the smallest amount you can invest is £7,000, with a single car unit costing £14,000. For a minimum investment within a 3-year period, you would be able to receive an amount of £164.69 in your bank account for a total of 36 months. With an interest rate of return of 7% per annum, you would be able to enjoy a gross final payment of £2,054 on the 37th month, giving you a total gross gain amounting to £983.23. It is not a bad amount of money at all, considering that you're not required to lift a single finger or make any sort of decisions throughout the lease period. Imagine if you have a whole lump sum amount of money you could invest? The maximum investment of £280,000 would give you 20 car units, an interest rate of return of 11% per annum, and a total gross gain of £75,795.34 in just 3 years without doing anything but just to waiting for your income to arrive in your bank account each month.