On 19 February 2021, the Financial Conduct Authority (FCA) immediately placed restrictions on Raedex Consortium Limited, the parent company of Buy2LetCars Limited. Raedex is not permitted to enter into any new vehicle lease agreements until such time as the FCA removes this restriction. As a result of these restrictions, Buy2LetCars Limited is not currently accepting any new investment. Raedex understands the importance of its regulatory obligations and will continue to be open and cooperative with the FCA in attempting to resolve these issues. We are currently discussing our accounts with the FCA and are confident that these discussions will result in a positive conclusion. These discussions do not affect any investments that are in place.
The squeeze on landlords is only getting more severe. Mortgage interest-rate relief continues to taper for the next two years and regulations around health and safety are getting more exacting. The pendulum has swung significantly against the amateur landlord. It is difficult to envisage this changing. As more of them get squeezed out by unexpectedly high tax bills this looks like the weakest spot in a market which is already frail.
Buy-to-let properties have long been loved by British investors, but rising taxes, tougher mortgage rules and high property prices have caused many to rethink buy-to-let investments and look at other options, including investing in leased cars.
Prior to 2012 the only parties that enjoyed the leading rates on investing in the car funding process were banks and car finance institutions using the deposits and savings of their customers. So lucrative is this industry that one of the biggest insurance giants – Admiral has joined the car funding business in December 2017. The booming car finance market has also reportedly earned Black Horse finance its strongest performance up 20% to £10.9bn.
We at Buy2LetCars have seen a significant number of buy-to-let landlords deciding to switch to investing in leased cars as opposed to buy-to-let property. In addition, with traditional investments such as ISA’s losing their appeal because of comparatively low returns, it’s no surprise that we now have over 500 personal investors in Buy2LetCars. It means minimal involvement for the investor, but crucially, the returns are between 7% and 11% per annum return and fewer headaches than buy-to-let property.
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