Niche Business in the Automotive Sector Offering Reoccurring Income
About this business for saleNiche Business in the Automotive Sector Offering Reoccurring Income
Opportunity to purchase a well established business in the automotive sector, which provides a strong re-occurring income.
The business specializes in the Rent to Buy market for clients looking to purchase a vehicle but who are unable to do so due to their poor credit record.
This business is fully compliant with the National Credit Act and Consumer Protection Act.
The business has been in operation for over 3 years and currently generates a net Income of over R150,000 per month from a large number of cars it currently has contracted out to clients that have taken up a rent to buy option. On the current contracts, which are 5 years in length, a total income of over R7,500,000 is still to be collected.
In addition the business has a further 15 vehicles which are available for the Rent to Buy option. This would further increase the monthly income by another R80,000 per month.
The current owner is experiencing strong demand for this option due to the difficulty in clients being able to secure conventional funding for the purchase of a vehicle.
The value of the vehicles in the fleet is over R4m and the asking price for the business is R5,700,000 Excl Vat.
The Seller is selling as he is planning on relocating out of the country.
This business has great potential for further growth and the business offers minimal risk due to the strong systems and contracts that have been put in place.
For a more detailed overview of this niche business please contact the listing broker – Greg King (084 556166)