Carinvest hits the headlines

More and more investors are looking to invest in the real economy, while benefiting from the guarantee of a high-performance, regular and stable income. It's still possible, figures in hand!

With Car Invest Europe, you can invest in car leasing and benefit from attractive, secure income. What's more, this investment in a French SME entitles you to a tax reduction, making tax relief an attractive and easy option. Jean Sadecki, Chairman and Founder of Car Invest Europe, talks to us about his investment offer in the car leasing market, which is unique on the French market. This enables privileged "investor-partners" to benefit from a guaranteed attractive income and to receive monthly remuneration on the long-term leasing of vehicles in the fleet, until they are resold.

What is Car Invest Europe's DNA?

Car Invest Europe's DNA: controlled performance. This French SME, specialising in car leasing, offers selected investors the chance to become genuine partners/associates of the company, and to benefit from an attractive income that is secured by contract and tax-free (7.6%/year guaranteed for a 6-year contract), paid monthly. Up to 8.6% net yield for an 8-year investment commitment!

Investing in car leasing is a profitable, long-term and secure opportunity, thanks to the business model of French SME CARINVEST Europe. The second-hand market for exports to Eastern Europe is worth more than 20 million vehicles every year. Car Invest Europe has positioned itself in this sector by providing a financing solution in Eastern and Central Europe through leasing, in partnership with approved dealers. At the same time, French carmakers and others no longer have to worry about the future of used vehicles they take back, since buying them back in Eastern European countries is made easier.

Car Invest Europe wanted to develop a transparent business model to enable entrepreneurs, craftsmen, shopkeepers, civil servants, employees and pensioners to invest in car leasing. Car Invest Europe started out with two partners, but today the company has 80 who have invested in the French SME, with a share capital of nearly 1.9 million euros, which will rise to 3 million euros by the end of July. Launched in 2020, the SME has successfully weathered the crisis while turning a profit, thanks in particular to the strong growth in the second-hand market that same year. This success means that the partners receive a return of 8%, net of tax. All new partners, who are required to make a minimum investment of €25,000, benefit from an IR-PME tax reduction of up to 25% of the payments made. You can also invest through the PEA-PME, a tax scheme that is fully protected by the banks...

By subscribing to the capital of an SME, it is possible to obtain a reduction in income tax. However, certain conditions apply, both for the investor and for the SME concerned. What are these conditions?

Tax reductions for investors

When subscribing to the capital of a small or medium-sized enterprise (SME), any investor (individual or legal entity with a maximum of 150 shareholders or partners) can benefit from a reduction in income tax.

This mechanism, known as IR-PME (also known as the "Madelin reduction"), applies when the subscription is made in cash and the shares received are held until 31 December of the fifth year following the year of subscription. It should be noted that the subscription can be made either when the company is set up, or when there is a capital increase.

Carinvest Europe: Particularly advantageous tax reduction rate and ceiling

The amount of the tax reduction is :

• 18% for payments made between 1 January and 9 August 2020 ;
• 25% (higher rate) for payments made between 10 August and 31 December 2020, then between 9 May 2021 and 31 December 2022.

The reduction is capped at 9,000 or 18,000 euros per year depending on the investor's situation, up to a maximum of :

• 50,000 for a single, widowed or divorced person ;
• 100,000 for married or civil union partners who are jointly taxed.

With 20 million vehicles sold in Europe every year, and the Covid-19 impact barely felt, the second-hand car market is still flourishing. Some European countries are even recording annual growth rates of 25%. Car Invest Europe specialises in second-hand car leasing and is the leader in this market, which has shown exponential growth over the years.

In 2020, while sales of new vehicles fell by more than 27%, due in part to the health crisis, sales of used vehicles fell by a moderate 4.7%, which, given the various confinements, the prevailing inertia and the economic crisis, can be considered a real achievement.

The CARINVEST Europe business model

CAR INVEST Europe finances cars and light commercial vehicles of more than 25 makes for importing customers in Eastern European countries. After a technical inspection, an overhaul to manufacturers' standards and a purchase survey, the vehicles purchased in Western Europe are resold in Eastern Europe in the form of a lease financed by CARINVEST Europe...

Literally translated from English, leasing is a form of rental. It is in fact a type of consumer credit also known as LOA (Location avec Option d'Achat), lease with promise to sell or leasing. Although leasing can be applied to a wide range of goods, the term is generally used to refer to the purchase of a vehicle, in this case a car. CAR INVEST EUROPE specialises in car leasing and, as part of its expansion, is offering partners the opportunity to invest in the company's capital in order to benefit from tax advantages and attractive income.

Investing in an SME or SMI offers many tax advantages, and there are 3 ways of doing this:

• FIPs - Fonds d'Investissements de Proximité (local investment funds), the aim of which is to support regional investment,
• FCPI - Fonds Commun de Placement pour l'Innovation, which aims to support SMEs operating in innovative sectors,
• Direct investment, by subscribing to the capital of a company.

CAR INVEST EUROPE offers direct investment by enabling future investors to become partners, thereby benefiting from tax reductions on income tax and SME tax, as well as a high level of security for their investment. The prerequisites include investing in an SME that is based in France or the European Union and has been in existence for less than 7 years. What's more, the amount of money received through subscriptions must not exceed €8 million per year.

Since March 2014, the Finance Act has allowed savers with available funds who wish to make their money work while benefiting from tax reductions to invest in an SME or a mid-sized company (ETI) through a PEA-PME-ETI, which operates like a traditional PEA (equity savings plan). Capped at €225,000, this investment allows individuals to contribute to the real economy by investing in small and medium-sized enterprises (SMEs) or intermediate-sized enterprises (ETIs). In addition to offering highly advantageous tax benefits, it also provides a cap on management fees, transfer fees, and account maintenance fees.

To be eligible, a company must have no more than 5,000 employees and must not exceed a turnover of €1.5 billion or a total balance sheet of less than €2 billion. Additionally, if a company qualifies and wishes to welcome investors into its capital, it must notify the relevant organizations (such as the Observatoire des Entrepreneurs) to be listed among the companies open to PEA-PME investment.

CAR INVEST EUROPE is a company specialising in car leasing, offering a limited number of partners the opportunity to invest in the company and benefit from an attractive income that is secured by contract and paid monthly. We operate in countries where vehicle purchases are very expensive...

France, through Bruno Lemaire, Minister for the Economy, Finance and Economic Recovery, has made no mistake in signing a framework contract with Ukraine worth €1.3 billion, with several orders all linked to transport. These include 130 electric locomotives from French manufacturer Alstom, as well as 370 'ladder' fire trucks worth €300m, to be produced by the French company Desautel. As Ukraine has shown with this historic order, which will enable an entire region to keep its jobs for at least 7 years, the country urgently needs to renew its fleet, and the reality is that the same applies to private individuals.

The car fleet in Ukraine, and more generally in Eastern Europe, is ageing and no longer meets energy and anti-pollution standards. Through its investment offer, Carinvest, which offers leasing of second-hand vehicles, is helping to clean up the Ukrainian car fleet, and demand is phenomenal, far outstripping current supply.

The aim of socially responsible investment (SRI) is to take account of a company's role in contributing to sustainable development, regardless of the sector in which it operates. ESG (Environmental, Social and Governance) criteria are included in SRI, which is more in line with a green and eco-friendly investment policy.

Whether we're talking about socially responsible, sustainable or ethical investment, we're talking about SRI, and more and more investors are becoming aware of the trend for certain companies to show a genuine interest in the impact of their activities on the environment, sustainable development and corporate governance.

SRI, or how to reconcile economic performance and environmental challenges

By definition, SRI is a win-win situation, as it allows investors to contribute to the economic development of companies on the one hand, and to play an active part in sustainable development by promoting a responsible economy on the other. By acquiring a stake in a company, investors become de facto 'partners' and can therefore influence the company's environmental and governance policies to improve its ESG criteria. This is the principle of committed shareholding, which takes on its full meaning in this context.

The company must follow the course of environmental criteria and its development orientations, but at the same time must maintain clear objectives in terms of financial profitability and environmental risk management. Although it is impossible to label SRI as a hyper-performing investment, it is commonly understood that the social, environmental and ethical factors, as well as the sums invested that govern its operation, are a driving force behind its economic performance.

A company that includes an ecological or sustainable development component in its development policy can qualify for SRI status.

The second-hand car market may be in slight decline, but it is still very prosperous and is increasingly seen as a promising investment for those looking for an attractive, tax-free investment. In our region, CarInvest Europe, a company specialising in car leasing founded by Jean Sadecki, is opening up its capital, enabling you to invest with peace of mind while receiving a monthly income. Here's how it works.

The principle
Car Invest Europe offers selected investors the opportunity to become genuine partners/associates of the company, to benefit from an attractive income secured each month on the long-term rental of the vehicles in the fleet, until they are resold. There are 3 possible partner agreements: 5% per annum tax-free capitalisation for 5 years, 5% per annum paid monthly and tax-free for 5 years, and a short-term contract for 1 year at 4% per annum paid monthly.

Who is it for?
Anyone who wants to invest in the real economy without fearing the ups and downs of the stock markets. Those who are able to invest €25,000 or more and want to receive a monthly income. People who want to benefit from tax relief, in short, people who want something simple and effective, thanks to a customisable offering that meets all their criteria.

How does it work?
Our company studies the customer's request to become a partner. If we agree, a partnership agreement is drawn up. You can then also take advantage of the PEA-PME scheme if you wish. To register your investment in a PEA-PME, all you have to do is submit the application to your banker to benefit from an immediate reduction in your tax bill.

Is it safe?
Because it has structured a stable and appropriate investment solution, the CarInvest Europe offer is economically tangible and perfectly sound. Every euro invested corresponds to an asset. A 130% guarantee(down payment of 30% of the vehicle's value + pledge on the vehicle until the end of the lease + insurance against financial loss) is systematically vehicle tracking and a comprehensive insurance policy. When it comes to investing, think CarInvest Europe!

Private equity funds help small and medium-sized enterprises finance their growth by injecting investor capital in exchange for shares. Investors actively support the internationalisation and growth of the SMEs concerned. But not all SMEs are ready to let an investor into their capital - so the chemistry between the investor and the SME's management must be strong. We contacted the experts at CarInvest Europe to find out more.

Definition of private equity by CarInvest Europe

Private equity is a form of investment. From the point of view of the investor, who ties up a certain amount of capital over a number of years in order, for example, to develop a company, the aim of private equity is to generate a substantial return over the period during which the capital is tied up, while doing better than traditional financial investments. The investor, or the private equity company, will be able to sell its shares, or the shares held by its investors, within a relatively short period of 4 to 7 years, at a substantial profit. Private equity is not just blind financing, but a genuine partnership in which the investor has a say in the management and strategic development of the company...