We can offer the below options should you wish to buy a car:
Fixed Rental Basis |
Variable Rental Basis |
|
| Profit percentage |
2% PM or 24% per anum |
Profit varies from month to month as per the business. we take 30% commission in each rental. The rest 70% comes to you |
| Can I keep the car with me whilst there is no rental? |
No, we keep the car and give you fixed rental income |
Yes, you keep the car and we take it once there is any business |
| Who will pay registration and insurance |
we will be paying for both |
It will be paid by you (the investor) |
| How long is the contract for? |
2 years minimum |
No contract |
| Who will pay for depreciation after we sell the car? |
We will be paying for the depreciation |
You (the investor) will be paying |
| What if I want to cancel the contract? |
50% of the profit must be returned to us if you want to cancel the contract before the expiry. On the other hand if we want to cancel, we not give any penalty except the depreciation charge which is 50% of the total loss |
There is no set contract so no penalty on either sides |
| Can I buy a used car? |
Yes, but there must be warranty on the car and the investment contract must not exceed the warranty period or kilometers |
Yes, but there must be warranty and we will only use the car if there is still any warranty left |
| Can I buy any car? |
We will be recommending which car to buy. Also, we will be evaluating the car before you buy. Since the depreciation cost will be divided between both the parties at the end of the contract, we want to make sure we buy a car at fair market value and not above the market value |
We will recommended the car type but you can buy the car yourself, since at the time of selling, we will not be paying for any depreciation. but we will make sure the car is not bought above market value |
| Who will pay for the service? |
We will be paying for all the periodic service |
You (the investor) will be paying |
| How will be my investment protected? |
We insure the car is handed over to a person who is not below the age of 25. Also we take credit card for security. Further, the car will be fully insured and under warranty so it is very safe |
We insure the car is handed over to a person who is not below the age of 25. Also we take credit card for security. Further, the car will be fully insured and under warranty so it is very safe |
| Will the car be under my name? |
No, it will be registered under company name but there will be written affidavit from our side stating the ownership belongs to you and which will be notarized at the notary public |
No, it will be registered under company name but there will be written affidavit from our side stating the ownership belongs to you and which will be notarized at the notary public |
Example:
Lets say we need to buy Mercedes S Class and you choose Fixed Rental Income
Car Value: AED 300,000
Rent per month: AED 6000
Total profit: AED 6000 x 24 months : AED 144,000
(Depreciation cost: AED 75,000 per year x 2: AED 150,000)
Total Value: AED 300,000 + Profit AED 144,000, so you made 48% profit in 2 years
The depreciation cost will be paid by us so you get the total AED 300k at the end of the contract