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Used vehicles dealer
100% Finanziert

100%
100%
Bedarf: €0.00
Min.: €0.00
Zinssatz: 13%
Zeitraum: 12 Monate
Finanziert
Ziel: €112 073
Mindest. Ziel: €50 000
Öffnet: 2019/11/12
Läuft ab: 2019/12/03
Art: Specialized
Lage: Riga, Latvia
Investitionen: 778

 

SUMMARY

The current investment opportunity offers CROWDESTOR investors to make a secured loan to used car selling company Jurmalas Auto that mostly imports their cars from Europe

Current investment opportunity offers CROWDESTOR investors to make a loan with 13% annual interest rate. 

Minimum target to be raised in CROWDESTOR platform is EUR 50 000,00, and the supreme goal is EUR 125 000,00. 

 

LOAN

Minimum target: EUR 50 000,00. 

Maximum target: EUR 125 000,00. 

Loan term: 12 months. 

Interest rate: 13 % per annum. 

Interest payments: paid monthly

Loan repayment: In full at the end of the Loan Term. 

Crowdestor BuyBack fund: Yes. 

Collateral: The loan is secured by a guarantee of the borrower company and certain cars as collateral

Remember - interest rate payments start calculating from the day you make your investment! 

 

ABOUT THE BORROWER

Jurmalas Auto is a company that sells used cars, basically cars are imported from Europe, but in some cases also from America or Japan. The used car market in Latvia accounts for approximately 70% of the annual car sales. The company mainly imports 3 to 10 year old cars. The team works professionally, with a lot of experience in the auto trade sphere. The desires of every potential customer are listened to in-depth so that the product that the customer wants really matches what they are looking for, which is also one of the most important moments to keep the customer happy with their car. We guarantee the perfect technical condition of all cars, by registering the car in the customer's name, the technical inspection is carried out in the presence of the customer. The aim of the company is to become one of the leaders in the car trade by creating satisfied returning customers and recommending our services to other people based on their positive experience in cooperation with Jurmala car.

 

USED CAR MARKET STATISTICS

In 2017, the used car market in Latvia “came to life” after a slow recession of the last two years. January saw a record increase of 71% compared to 2016 registrations. In addition, the bad news is that the average age of imported cars has increased.

 

2017 saw the end of a prolonged downturn in registrations and nearly 54,000 used passenger cars imported and registered, up 16% from a year earlier when 46,600 used passenger cars were first registered. This is a significant increase after two years of decline.

 

2017 saw a noteworthy tax change - the first registration no longer required car and motorcycle tax, which previously served as a barrier to importing a car of a certain age, engine capacity or power. Such a burden exceeded the value of some good cars, which logically dissuaded the owner from importing and registering them. The age of used imported passenger cars has increased significantly after the abolition of this tax, from 9.8 in 2016 to 10.8 in 2017. Decide for yourself whether it is good or bad. It may be an old and good car but bear in mind that Latvia often reaches cars with significant mileage or some defect that makes the price of this vehicle attractive. A more technologically advanced car capable of emergency braking is equipped with more airbags and more active and passive security systems, reach Latvia later.

 

The negative trend is best reflected in the graph showing the age of imported cars over the last three years. It can be seen that imports of cars under the age of 10 are decreasing year by year and in 2017 the number of imported cars in the segment older than 10 years has significantly increased. The graph shows that the price of new passenger cars in Latvia is so attractive that imports of little used cars under the age of three are virtually non-existent.

 

 

In the top three brands, there has only been a change of position between Volvo and Audi. First place is VW with more than 7,800 registered cars and a market share of 15.5%, up 0.2 percentage points compared to 2016. Second place was Audi with nearly 7,100 registered vehicles and a 14% market share, an increase of 1.2 percentage points. With nearly 6,950 registered used cars, Volvo is in third place with a market share of 13.7%, down 0.5 percentage points compared to 2016. Correspondingly, BMW is in 4th place and Opel in 5th place. The five above mentioned brands account for 63% of all imported used cars.

 

But which are the best-selling models? The top-of-the-range models include all five top-selling brands - the Audi A4 with nearly 2,900 registered units, the Audi A6 with just over 2,400 units. Note that these two models account for 75% of all registrations of this brand. In third place is the VW Passat with 2080 units, followed closely by the BMW 3 Series with 2060 units and the VW Golf with almost 2050 units. As you can see, the SUV is not dominated by the SUV, which is a clear leader in new car registrations. The only off-roader to hit the top is the ninth-place Volvo XC90 with 1,000 first-time registered vehicles.

 

 

All of the most popular used cars imported in 2017 also have a long history of the model, and they are available in both little used and decent age. The only model from the top that is out of production and no longer available under that model name is the Volvo V70, replaced by the Volvo V90. Choosing a used car is often good for past experience and for those around you. 46% of the top 10 models are between the ages of 11 and 15, which are 2002 to 2006 vehicles.

 

In 2017, the share of imported cars above the age of 10 increased by a total of 9 percentage points, and now 53% of all imported cars are over the age of 10. Buying such a car requires extra attention as you need to evaluate the history of the car and get as much information as possible. It is advisable to familiarize yourself with the experience of other users with the respective model so that you are not surprised by unplanned repairs. Particular attention should be paid to mileage testing as it can be manipulated, which can lead to unplanned repair costs, improper maintenance, such as not replacing the engine timing belt at the respective mileage, even though the strap change time is not come. These actions can result in serious engine damage. It should also be borne in mind that high mileage has exhausted car units and systems and may be more likely to go out of business than low mileage cars.

 

We expect a 10% growth in the used car segment in 2018, as the big wave of tax changes in early 2017 is off, and in 2018 the State Revenue Service plans to tighten controls on used car purchase documents, which will make it much more difficult for gray dealers to car sales. In 2018, car owners who have so far paid the service tax based on engine volume, weight and power will also have to make a responsible decision, but as of January 1, 2019, the calculation methodology will change and the tax will be based on CO2 emissions per kilometer driven.

 

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