Here is the difference
Active Partnership | Sleeping Partnership | |
Investment Required | AED 70,000* | AED 100,000 or the value of the car |
Recommended for | Drivers | Investors |
Monthly Installment | AED 9,000 | No installment |
Profit | Above 9,000 is net profit for driver | 2% PM which is AED 2000 monthly |
Minimum contract | 3 Years - can be cancelled anytime | 3 Years - can be cancelled on 3 months notice |
Penalty | NA | 3 months profit deducted |
Active partnership is for drivers, who would be taking a car and pay monthly installment.
Sleeping partnership is for investors who would invest with us and get monthly profit. We work as a catalyst between an investor and a driver thereby giving opportunity to both the parties to make earning
How does the whole investment work for investor?
We buy a brand new car, say Lexus ES350 at AED 150,000
You get 2% monthly profit and that will be AED 3000 per month
Minimum contract is 3 years and that will be AED 3000 per month
To understand it better, please check the below overview:
Credit | Debit | Balance | |
Capital Invested | AED 150,000 | AED 150,000 | |
1st Year Profit gained (AED 3k x 12 months - 2% of 150k) |
AED 36,000 | AED 186,000 | |
1st Year Capital returned (1st Cheque) | (AED 50,000) |
AED 136,000 | |
1st Year profit returned |
(AED 36,000) |
AED 100,000 | |
2nd Year Profit gained (AED 2k x 12 months - 2% of 100k) |
AED 24,000 | AED 124,000 | |
2nd Year Capital returned (2nd Cheque) |
(AED 50,000) | AED 74,000 | |
2nd Year profit returned |
(AED 24,000) | AED 50,000 | |
3rd Year Profit gained (AED 1k x 12 months - 2% of 50k) |
AED 12,000 | AED 62,000 | |
3rd Year Capital returned (3rd Cheque) |
(AED 50,000) | AED 12,000 | |
Year profit returned |
(AED 12,000) | AED 0 |
So you made AED 72,000 in 3 years