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.