This the mostly asked question by our investors. Since, we are an old company and we have easy access to the bank finance, we have no problem getting finance from the bank

Following are the benefits with investors

With Bank
With investors
Can we buy used car?
No, you can buy only a brand new car
you can buy a used car thereby reducing the depreciation cost when selling the car
Depreciation cost Full cost is up to 20% Reduced by more than 50% as the cost is digested by the initial buyer
Insurance cost Will pay the percentage of the actual value of the brand new car will pay the amount invested in the used car price thereby lower cost
Word of mouth marketing (Brand Ambassadors) Bank will not bring us business Investors become brand ambassadors as they hold share with us thereby they refer their friends hence, more sale
Exit strategy Hard - you have a lot of paperwork and fine when you close the loan Very easy - sell the car, put the depreciation difference and pay the investors back
The car is not making money Installment still needs to be paid and to sell the car, the loss will be more since it was a brand new car No problem, sell the car and put the money in another car which is more popular and money making. Swapping is also easy since its a cash car
Distress deals Not possible to buy as bank would finance only brand new cars Possible as ready cash available to acquire distress sale