ILS Buy To Let Car Finance

Buy 2 let car finance

At Barrington Howe we continue to look for high quality asset backed investment opportunities to complement our existing portfolio of products. Through continued feedback from our clients, we try to understand what the market is looking for and currently it is low risk asset backed investments offering sensible and achievable returns. One such product that we have now taken on is ILS buy2 let car finance.

This is an innovative investment opportunity allowing investors to tap into a huge market to finance cars to buyers seeking HP finance for cars. There is a massive demand for car buyers wanting finance so there is no shortage of buyers. In addition, investors gain the benefit of an asset in both the car and the HP loan book. But here’s the clever bit. If the car owner defaults on the payment, there is technology in the car that will allow for the car to be switched off preventing it being driven.

The feedback from many investors is that they don’t understand how a film investment works. They are not keen on a Brazilian property investment in a country they never visit. What they do know is a car. They understand vehicles. They understand the concept of buy to let. It’s not a difficult concept to understand and let’s face it, people fear what they don’t know. It’s a natural reaction. Generally if you don’t understand something, it does not fill you with confidence to invest into it.

Most of the population drive and it’s easy to understand that you can make a fixed income from financing a car whilst retaining the underline security. At the highest investment option, investors can make 20% per annum over 3 years. That’s a 60% return on investment from a car! As such, ILS Buy 2 Let Car Finance has been a welcome addition to the Barrington Howe list of investment opportunities. A fixed rate investment giving high yields with added benefit of security. Barrington Howe now have opportunities to invest in property, cars and hotels now giving cash or pension investors’ greater choice and flexibility to diversify their investment portfolio.

Dolphin Capital GMBH

Dolphin Capital rebrands globally to Dolphin Trust

Over the last 2 and a half years, Barrington Howe has been extremely successful as a master agency with the Dolphin Capital investment. In fact, the Dolphin Capital property investment has gone from strength to strength building on a strong and assured business model giving investors more comfort when investing into an asset backed investment.

As of November 2014, German-based listed building developers Dolphin Capital and their associated international partners rebranded to Dolphin Trust. With continuing international expansion and global success, trademark protection of the company’s name is needed for a defined brand identity and to allow further growth within the group. An important part of the rebrand is a new public image for the company including a new corporate design as the foundation for all communication including a brand new global website.

Part of the rebranding is no doubt due to wanting to disassociate itself from other companies with the same or similar name.  We at Barrington Howe have ourselves been made aware of this confusion through our own experience.  We found that on occasions, potential clients carrying out their own due diligence confused Dolphin Capital with other companies that had, let’s put it politely a bad reputation. Even a small error like that can have big implications in giving a potential investor the wrong impression of what is a  reliable and proven investment, even though it is a completely different company. The rebranding to Dolphin Trust is a smart move.

“The significance of the new name is in part a reflection on our customers and partners, who have made our success possible in only seven years”, says Charles Smethurst, founder and CEO of Dolphin Trust. “But even more it represents our claim to breathe life into words such as sustainability, transparency, honesty and trust.” Smethurst stresses further.

Dolphin Capital was originally launched in 2008, uniting a group of companies that had worked together for over 25 years, and since then has developed a reputation as a leader in the market for development of historic listed buildings in Germany. Today, Dolphin Trust will continue these long traditions and diversify into new fields such as residential construction and land development.

Is this one of the best fixed rate Bonds at 12% PA?

At 12% pa, is this one of the best fixed rate bonds on the market? The returns on some of the best fixed rate bonds can offer an attractive alternative to those on low-return cash savings accounts, but you need to understand the risks as well as the benefits.

What is a bond?
A bond is an alternative method for a company to borrow money directly from investors instead of a bank. It is effectively a loan for a fixed period of time (or “term”) with an agreed rate of interest (or “coupon”). Typically, these loans are three to five year agreements. A coupon or interest is paid either quarterly, bi annually or annually. When the bond reaches “maturity” the company gives you your original investment capital back plus any interest due.

The key benefits
The biggest benefit is the return which is 12% pa but with the added benefit of having security on your investment. This ensures there is a tangible asset that can be liquidated in the event of a worst case scenario. In this case, the fixed rate bond is based on property which provides the security. An independent FCA regulated trustee overseas the running of the investment too. The other key benefit is that there are no hidden or additional fees which can often cut into the return on interest (ROI). Barrington Howe is an authorised investment agent for the bond and is based in London. We specialise in asset backed secure investment opportunities.

  • 3 Year fixed term Bond
  • Fixed Exit Date
  • 12% pa fixed return paid every 6 months
  • FCA regulated Security Trustee
  • Strong track record, all investors paid out over the last three years

Understanding the risk
Unlike traditional bonds, unregulated bonds cannot be freely traded. That means other than in exceptional circumstances your money is tied in for the full term. For investors who may need the cash during the term, it is a disadvantage. However, it may be a benefit as the bond’s value is not subject to the sometimes volatile fluctuations of the markets during the agreement term, just the viability of the company issuing the bond; as long as the bond issuer meets its obligations, you know exactly how much you are going to get in interest and at the end of the term. In this case, 12% a year for three years. A total of 36% interest. If the bond is asset backed with a form of security, this gives greater strength to the investment model.

Aside from the lock-in, the biggest disadvantage of unregulated bonds is that they are not covered by the Financial Services Compensation Scheme. If the company goes bust you may lose some or all of your money. You have to be confident the issuer has the financial strength and ability to meet its obligations. With a secured bond, there is always a tangible asset as a failsafe.

The Colonial Capital Bond
The Colonial Capital Bond is issued by Colonial Capital plc through its authorised agent Barrington Howe. This fixed rate bond offers 12% pa for three years. It specialises in buying below market value properties in Chicago and refurbishing them to a high standard before renting them through a US Government Social Housing program to families. The properties have their market values raised through the refurbishment and an exit strategy for guaranteed rents through the US Government. The fixed rate bond issuer is a UK PLC with an FCA regulated security trustee.

The Colonial Capital Bond has been designed to try and mitigate many of the risks associated with fixed rate bonds. Investors have two distinctive levels of security. Firstly, an FCA-authorised investment manager has been appointed to act as security trustee with the power to intervene and seize the assets of Colonial Capital plc if it fails to fulfil any of its obligations to its investors. Secondly, Colonial Capital Bond plc is a wholly owned subsidiary of Colonial Capital Ltd, which is standing as guarantor – so the parent is effectively underwriting the obligations to the company’s bond holders.

This bond also gives you the choice of compounded interest by rolling up your interest over the 3 years. With a compounded interest of 14% per annum, is this one of the best fixed rate bonds?