Hi
Anyone here have used plenti or rate setter (as previously known) for car finance
How was your experience?
I’ve read their google review, but have a feeling it’s probably biased.
Keen to hear from anyone who have dealt with them before.
Thanks !
Anyone Here Used Plenti / Rate setter
Aceboy884 on 05/10/2020 - 20:28
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Mind me asking roughly how much they pay investors?
Max 6.5%
Interesting - just had a look at their IPO prospectus - link below.
From Table 7 on p.89:
What loan interest they charged vs. what they paid investors - FY20 averages:
Automotive loans: 7% vs 5.7%
Renewable energy loans: 10.3% vs 6.0%
Personal loans: 14.8% vs 7.2%Nice way to take a good clip on loans between two external parties.
https://web.automic.com.au/er/public/api/documents/PLTU?file…
I've used them for a car loan. No complaints.
If I remember correctly the rate they offered me was slightly higher than their advertised rate, but was still competitive with the big banks.In terms of experience, was it all handled online or did you have to talk or chat to someone?
Thank you!
All handled online.
I tried society one which works similar to rate setter. Actual rates were higher than advertised. Wasn't happy when they declined a second loan application
Yes used them via a broker and got a rate of 4.35%. No issues
So the rate advertised on their website is a little misleading… it is showing around 6%?
I wouldn't really call it misleading as they are advertising a higher rate, not the other way around.
DM me if you want the broker's details, he is awesome
Also, if the risk is taken by the lender (individual investor), does that mean plenti themselves don't take any of the losses?
Who covers the risk if a loan goes sour?
The investor bears the risk. However part of the interest gets paid into a provision fund which may cover a capital loss.
So its limited liability?
To avoid a complete loss, since the lending are pooled?
There is no guarantee. The provision fund has covered all losses to date, but the t+c state that investor capital is not risk free.
I'm an investor, which is alright but they've limited their rates due to covid. From what I understand they do their due diligence to make sure that borrowers are safe and can meet their repayments.
Personally, I'd buy a car outright and avoid car loans so I hope you have all your ducks lined up.