Rental property or automotive investment: what are the differences?

Rental property or automotive investment: what are the differences?

You know how rental property investment works: buy an asset, make it available to a customer and receive income. What if you could find a similar business logic in the automotive sector, without managing the operations yourself?

With CARINVEST GROUP, you help finance a tangible business: purchasing and operating used vehicles through lease-to-own agreements. The group’s teams select the cars, market them and manage customer relationships.

For investors familiar with property, some principles will be recognisable. But several differences deserve attention: an upfront customer payment, assets that can be sold individually and day-to-day operations handled entirely by the company.

A practical need: helping customers get around

Like housing, mobility plays a central role in everyday life. For many customers, having a car is essential for getting to work, supporting their family and organising their journeys.

CARINVEST GROUP addresses this need with used vehicles suited to customers’ requirements and budgets.

Our priority is commercial: selecting sought-after cars with the potential to sell quickly. We do not favour a particular brand or powertrain. Petrol, diesel, hybrid or electric vehicles are chosen for how well they match customer demand.

Lease-to-own: use your car today and become its owner

The process is straightforward. The customer chooses an available vehicle, usually makes a 30% down payment, then pays the balance in monthly instalments over 24 to 36 months, depending on the agreement.

They can use the car immediately. Maintenance and insurance are included according to the agreed terms, and the company retains ownership during the agreement.

Once all instalments have been paid, the customer becomes the vehicle’s owner, without an additional final payment under the model described.

The aim is to complete a sale, with instalment payments allowing the customer to access a vehicle without paying the full price upfront.

30% of the price received at the outset

This is an important difference from rental property: part of the sale price is received before the vehicle is handed over.

When a customer makes a 30% down payment, the company reduces the outstanding amount to be collected during the agreement. Unlike a rental property security deposit, this payment forms part of the car’s purchase price.

The initial down payment is therefore a key element of each commercial transaction. Alongside vehicle selection and payment monitoring, it forms part of how the business is organised.

Teams organised to respond to missed payments

Property owners know the difficulties that missed rent payments can create: procedures, delays and case management can take considerable time.

At CARINVEST GROUP, customer account management is an integral part of fleet operations. The company retains ownership of the vehicle during the agreement and has dedicated arrangements for responding to payment defaults.

This operational capability allows vehicle recovery to be initiated promptly, in accordance with the agreement and local procedures, followed by preparation for resale where necessary.

For the investor, these operations are handled by the group’s teams.

Ten vehicles: several opportunities to sell

An apartment generally represents a single asset. Selling it requires finding a buyer able to finance the whole property.

A fleet of ten cars can be sold one vehicle at a time, to different customers and at different stages. Each car has a price and features that may meet a particular customer’s needs.

Spreading sales across several vehicles provides flexibility in stock management. The company can gradually renew its inventory and adapt purchases to the demand it observes.

That is our approach: prioritising vehicles that attract buyers, rather than building a fleet around prestige or personal preferences.

Invest without taking on a second job

Rental property can require a considerable personal commitment: finding tenants, reviewing applications, organising viewings and inspections, monitoring rent, managing repairs and handling administrative matters.

An agency can take on some of these tasks, but the owner still has decisions to make and matters to oversee.

With CARINVEST GROUP, you do not have to manage the cars or their users.

Purchasing, preparation, sales, maintenance and agreement administration are handled by the group’s teams. You help finance the business without having to organise its operations.

Your role is that of a shareholder: reviewing company information and participating in collective decisions. You can attend general meetings or appoint a proxy, in accordance with the applicable arrangements.

You spend your time monitoring your investment, rather than managing the assets day to day.

An option designed to provide monthly income

With a rental property, you collect rent and pay the expenses associated with owning and operating the asset.

With CARINVEST GROUP’s Distribution option, you seek income from your investment in the company: a gross annual return of 7–8%, paid monthly, depending on the offer, amount subscribed and contractual terms.

You do not have to organise customer payment collection or vehicle maintenance yourself.

To compare the two approaches, consider the fees, taxation and commitment period of each. With property, expenses, repairs and vacant periods affect the income you retain. With CARINVEST GROUP, fees and payment arrangements are set out in your subscription documents.

IR-PME: a tax benefit that may complement your investment

For eligible subscriptions, the French IR-PME scheme provides an income tax reduction equal to 18% of the amount subscribed for eligible shares, subject to the applicable conditions and limits.

Our team helps you understand the supporting documents and information needed for your tax return. You have a point of contact to explain your subscription and any associated tax benefit.

The reduction applies to the eligible equity subscription; amounts advanced as shareholder loans are excluded from the calculation. Details are available in the official Service Public guide to IR-PME.

Another way to diversify your portfolio

Do you already own property and want to explore another business sector? Automotive investment offers an opportunity to consider exposure to a different industry, with tangible operations and teams responsible for running them.

With CARINVEST GROUP, you invest in the company and its overall business. You do not choose a particular car: you become a shareholder in a company that develops and manages its automotive operations.

This approach may have a place in a diversification strategy, depending on your objectives, investment horizon and the money you can commit over the longer term.

For more on this topic, read our article “How to diversify your savings?”.

Discover automotive investment with CARINVEST GROUP

An everyday asset, an organised business and operations handled by our teams: discover another way to invest in the real economy.

Would you like to compare this approach with your experience of rental property? Our team can explain how the business works and the available investment options.

Request an investment illustration and explore CARINVEST GROUP’s offers, or call us on +33 4 97 06 73 50.

Investing involves the risk of losing some or all of your capital and the risk of illiquidity. Neither capital nor returns are guaranteed. The ability to sell vehicles does not make your investment available for withdrawal at any time, and vehicle insurance does not guarantee the money invested. Advertised returns are before personal taxation and depend on the offer. Tax benefits are subject to conditions. Past performance is not a reliable indicator of future results.