Have you stumbled upon some extra cash that you could have other uses for other than your daily expenses or other needs, you might want to put it in good use. Or if you have a huge sum of cash just sitting in your bank account without it earning a significant amount, you should probably re-think your financial choices when you let that happen. If you have let us say £100,000 sitting in the bank with a measly annual interest rate, it would not get you very far. You should consider other channels to get your money’s value higher in the time you would not need to use it. Thinking of the best way to invest 100k may be a bit tricky because of course for one, it is a lot of money, and secondly, because of how much it is you would not want to put it in a risky and shady investment, right? There are a lot of ways and channels you could invest your money in. But if you want an investment that does not have much of a time and energy commitment, has minimal risk, and at the same time have wonderful returns, then you should probably consider buy to let cars.
With the money that you have, you could easily be a landlord in the UK, but with cars. A £100,000 investment will get you around seven units that would be able to earn you money. Those seven units or seven cars would be leased out to potential lessees who are on average people with a bad credit history. Buy to let cars is a great investment opportunity because more and more people are leaning towards the leasing of cars, rather than purchasing one for themselves. The reason for this is because people with bad credit history would have a really hard time in applying for a car loan they could use to buy a car of their own. Not only that, but owning a car today is actually a lot more expensive than when you lease one out because of the expenses involved, most especially the increasing cost of petrol!
How Does it Work?
You can get seven cars with the amount of money that you have. The money that you will invest with the company would technically be lent to the company for the purchase of the cars for a span of three years. The beauty in it is that you do not have to move a single finger in order for your funds to grow. Once the money is with them, you just need to sit back and wait for your earnings to come. The purchased cars will then be leased out to potential lessees who are screened to guarantee that they are able to afford the monthly payments. Every month for 36 months, the lessee will pay off his or her lease payments, while you get monthly deposits to get the total of your investment back within the three year period. On the 37th month, you would get a lump sum deposit with your interest earnings.
How Much Can You Earn?
You could potentially earn, on average, a whopping rate of 11% per annum. Imagine, without having to do anything, you have a potential to earn £26,458.37 on your £100,000 in a span of three years. Beats having to put it in a bank and earn so little. If it were in a bank savings account, you would be lucky enough to have at least a thousand earnings from interest rates. When considering an investment, it is important to determine how much value your money would earn in the span of time it is parked somewhere, for example in a bank savings account. If it earns less than the annual inflation rate per year, then your money is not really growing in value while it is there. With buy to let cars, you would be able to beat the inflation rate, increasing your money on average at least four to five times than the inflation rate.
It Is Not a High Risk Investment
There are a lot of people who are opting to lease out cars nowadays, which is why there is a huge market for buy to let cars. Most people could not afford to buy cars of themselves anymore because of the high prices and expenses that come along with it. While there are some who can actual afford to buy cars, most do not and just spend their money wisely than on an asset that depreciates in value as the years go by. You also have a safety net with buy to let investments, so you do not have much to lose. As the investor of the asset or the car, you will gain the security over it. That is why, even if the letting company goes into bankruptcy, you would be able to ask for a repossession of the car so that you could get a part of your investment back.