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Vehicle repair and custom modification center | Working capital increase | Round 01
Open

Need: €37 385.29
Interest rate: 24%
Period: 12 months
Target: €40 000
Opens: 2022/07/28
Expires: 2022/08/28
Type: Specialized
Location: Lithuania
Investments: 26

Summary

The current investment opportunity offers CROWDESTOR investors a loan with a term of 12 months and interest of 24%. The funds raised in this campaign will be used to increase the working capital for the vehicle repair and custom modification centre. The financing target in this round is EUR 40 000.

The company has operated since 2015 and provides full-cycle vehicle repair services. Last 5 years, the company has specialized in repairing and selling special vehicles for motorsport.

The company sees great potential to specialize in the restoration and modernization of vintage offroad vehicles for sale. The market value of a restored or modified car increases by 3-5 times. Due to lower prices for repair work in Lithuania,  profitability from the realization of the customized vehicles can reach 35-50%.

LOAN

Maximum target: EUR 40 000.00 
Loan period: 12 months
Interest rate: 24% p.a.
Repayment: Interest and loan principal is paid in a bullet payment at the end of the loan period.
Security: Guarantee issued by the Borrower
Location: Latvia

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

Project

During the last 5 years, the company has restored and customized more than a hundred off-road vehicles, mostly for hunters, fishermen, and off-road drivers. Many companies' customized jeeps took part in Baltic Championships. The company's turnover is growing every year and has reached  ~1.5 million euros/year.

During the pandemic, the company received many requests for the construction of expedition vehicles based on old jeeps, such as LAND ROVER DEFENDER, NISSAN PATROL, and MITSUBISHI PAJERO, TOYOTA LANDCRUISER 1990-2000.

Based on this demand company wants to realize a project - that implies the purchase of vintage offroad vehicles, restoration and customization and further sale in the Swedish market.

It takes a lot of time to equip and modernize such vehicles. Buying a customized and refurbished car for such entertainment is very difficult or expensive. Therefore, we want to provide an opportunity for clients to purchase a restored and modified car immediately. Price vary in range from 8,000 to 25,000 EUR.

As an example, one of the company's projects, a 2000 NISSAN PATROL GR 3.0 expedition car, was purchased for 3 500 EUR. 9 000EUR was spent on upgrading the vehicle. The car was sold in Sweden for 18,500 EUR. The gross profit of 6,000 EUR.

To implement the project, the company has so far purchased 20 vehicles with a total value of 90 000 EUR. For the restoration and modernization of these cars, total funds of 175 000 EUR are needed. The planned revenue from the implementation of the project is 370 000 EUR.

Stages of car restoration:

  • Dismantling and dismantling the car, removing old paint, and body cleaning.
  • Manufacture/repair body parts made of steel, aluminium, and fibreglass.
  • Restoration and modernization of the car chassis.
  • Painting work.
  • Technical repair of all vehicle components.
  • Overhaul of the engine and gearbox.
  • Galvanic work during the restoration of the machine.
  • Restoration of the car interior.
  • Production and repair of electrical wiring.
  • Production of missing parts.
  • Testing and delivery.

Market Opportunity

Today, the demand for such services is gradually increasing as more and more people go on trips to untouched corners and enjoy the ride off-road. In many countries, this type of entertainment for tourists has become widespread, as a rule, in mountainous areas actively visited by tourists.

Off-road activities can be divided into two categories: sports and outdoor activities. Off-road outdoor activities include off-road expeditions, drives, and festivals. For sports, various rallies take place and gain more and more popularity.

Since off-road is always unforeseen surprises that an ordinary car cannot cope with, it can drown in the mud or stumble on stones; therefore, it is specially prepared for such “favours” of our off-road and such preparation is called off-road tuning. The car is equipped with winches and a strengthened transmission that protects all the main components, and an expeditionary trunk is installed. This is the bare minimum that is included in vehicle preparation for off-road.

 

 

 

 

 

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