This is a video from the Motorholme, Motorhome Invest Open Day 2011.
Hi and welcome to Motorholme open day. You are all here today to learn how we’re going to pay you 30% return over three years.
Andrew: The Motorholme open day is an opportunity to investors to come along to our head offices here to have a brief presentation on how our investment scheme works, and most importantly to see us and see the types of security that their money would be secured on.
If you are looking at putting a lot of money into a business you really need to understand it, meet the people, and look at the facilities.
I am sure it is essential to be totally transparent.
Understand the culture as well, as well as seeing the product.
You come here to a farm and you wonder what sort of set up it is, but no, I am very impressed with the two vans that they have got on show.
Your money, your £35,000 we have bought a motorhome with it. Your money is secured against the chassis number of a motorhome.
Andrew: You must understand that the security is on a one to one basis so what we mean by that is the loan agreement names a specific chassis number and that is the vehicle that we used investment money to buy. Now that is filed then as a debenture on our company so in the event of us going out of business the investor has first charge over that particular motorhome and is free to take that ahead of a queue of any creditors.
Andrew: I came up with the idea for the investment scheme because we were looking to expand our fleet, but not in our traditional model, which is to recruit owners. What we want to do is have more control over the vehicles and the only way we could do that was to buy them ourselves.
We built the business by not borrowing money. The investment scheme is a brilliant way of us putting exactly the right number of motorhomes on the road to match how many we think we can hire out so that is why we do not approach the banks.
Andrew: Because we are the UKs largest motorhome hire company we easily have enough rentals to support this idea.
We had 300 motorhomes at Glastonbury this year, 300, and bear in mind we charge up to £1800 for one weekends hire at Glastonbury.
Andrew: The next three years are absolutely key not just in terms of general usage, but specific events that demand motorhomes as a key requirement.
Next year we have got the Olympics, 2013 Glastonbury is back, and 2014 is the Commonwealth Games in Glasgow. Now all of these unlike Glastonbury – Glastonbury is one weekend – all of those other events are one month long.
They did mention today that the cost of flights is likely to double if not treble in some cases next year because of changes in legislation and tax. It is going to put people off the traditional package holidays and will make this sort of holiday more affordable.
Andrew: I think this kind of investment would appeal to most savers who have in excess of £50,000, £60,000 sat in a building society account or a savings account of some kind and enduring sort of a 1.5% return and that really was not that they had in mind or expected when they saved up hard for that money.
Well I am an existing investor in Motorholme on their buy to let scheme and I am currently reviewing my investment portfolio and this looked like a very good way of getting returns at a lower risk.
Investments you have to be careful with and when something that is delivering returns like this sounds sometimes too good to be true so that was the main reason I came along today to understand the mechanics around it.
It seems to have answered all the questions and all the doubts that we had, particular about why they did not get bank loans. We could not understand that and we could not understand why they were offering it to investors and not just get the loans from the banks so he has answered that question.
I can see as a business model how it is really going to work, how it working, and how it will continue to work.
Andrew: I think everyone and savers especially are looking for certainty in these uncertain times as you say because interest rates technically could go lower so they may not earn any money on their savings. At least this way they are guaranteed a 10.2% per annum paid monthly into their account so they have got some certainty for at least three years. There is no obligation to leave us after three years, but you are in for a minimum term before you can withdraw your funds at that time.
This is all about saying well this is what I have done so far, come and join me and be a part of the success with the Motorhome Invest scheme.
Topics: Motorhoming in The Alps, Motorhome in The Alps, Motorhome Invest, Extreme Motorhoming, Motorhoming at Dungeness, Motorhoming at Portmeirion, Motorhoming at Harlech, Motorhoming Off Season, Motorhome Hire
