Finance Press Tops Trust Poll of Personal Investors

47% of personal investors use the financial press to research the best investments to achieve their life goals, topping recommendations by family and friends by a massive 33% (polled 14%) and professional advice by 40% (polled 7%) a survey by Buy2LetCars has revealed.

The survey of UK adults, carried out by the firm which operates a vehicle leasing model funded by individuals instead of financial institutions, investigated attitudes towards investment, fiscal risk and trust in financial institutions in the current climate.

Only 9% of respondents used their current bank or building society for investment advice, with 51% of respondents stating that they did not trust their bank at all, while a staggering 81% did not trust their bank to give them a good return on their money.

Property is still considered the most reliable investment – 83% trust it to give them the best or a fair return on their money, followed by gold with 14% trusting it completely.

However, the survey also reveals that what had previously been thought of as alternative investments, such as art, are actually delivering the best results for people, driven in part by low interest rates hampering returns on savings.

The results suggest that a distrust of banks is leading savers and investors to research alternative ways to grow their money with the financial press playing a huge part in providing the latest information. This shift in attitudes is supported with a significant growth in re-investors in Buy2LetCars, which saw 38.22% of its entire investor base re-invest during or after their three year investment cycle.

The survey of people’s saving and investment habits also looked at the reasons why people are saving, with the majority of respondents (49%) saving for retirement, 25% saving for other projects, including paying off debts, house improvement plans and investment opportunities, 20% saving for a holiday, 15% saving for their children’s future and 14% saving to move house.

Surprisingly, the impact of Brexit on savings and investments is not a concern for most respondents, with only 29% being concerned about the potential financial implications of Britain leaving the EU, compared to 58% who are not concerned.

Paula Edwards, Marketing and Communications Manager at Buy2LetCars, comments: “The results of our survey demonstrate that people are still deeply mistrustful when it comes to banks, with the perception and impact of the 2008 recession still resonating with the general public, forcing them to research alternative methods of investment from sources other than professional or bank advice. The financial press is perceived as a credible, independent source of information, and personal recommendations from friends and family rank highly for trust.

“The figures we see suggest that people are looking to remove their financial dependence on banks and institutions, instead spreading their investments across alternative saving and investment opportunities, such as art, classic cars or peer-to-peer schemes, and direct investment methods such as property and gold. These are perceived as more trustworthy, delivering an increase in value over time and giving a better return overall.

“This is supported by the results we see at Buy2LetCars, with nearly 40% of our investors choosing to commit more funds during or after their three-year investment cycle. With interest rates remaining low, compared to the 33% return we deliver on investments, we believe that people will continue to choose alternative investments to achieve their lifestyle and financial goals.”

Buy2LetCars, based in Godstone, Surrey, operates a people to people lending scheme that delivers a 33% return on investments over three years by purchasing and leasing out cars via its leasing arm Wheels4Sure.com. The leasing arm provides new cars to customers with a proven regular income, who struggle to access mainstream credit for a variety of reasons. The company, which has operated since 2012 and now employs 30 people, conducted the survey as part of a re-branding and re-positioning exercise, and its need to further understand its customer base.

Buy2LetCars works with 13 manufacturers, including Mercedes-Benz, Fiat, Alfa Romeo, Vauxhall and Jeep, and its success has led to its inclusion within the Barclays and BGF Entrepreneurs Index and the Mishcon CITY AM Leap 100 Index, identifying it as one of the country’s fastest growing new businesses, and a nomination in the UK Private Business Awards 2015.

For more information please visit www.buy2letcars.com.