What Was Buy 2 Let Cars?
Buy 2 Let Cars Ltd was a car leasing investment scheme founded by Reginald Larry-Cole in 2012. The company invited members of the public to invest a minimum of £7,000 (initially £13,500) over a three-year fixed term, with the promise of annual returns of up to 11%. Investors were told their money would be used to purchase new vehicles — typically from brands such as Hyundai, Toyota, and Vauxhall — which would then be leased to consumers with poor credit histories through a sister company, Wheels4Sure, operated by the parent firm Raedex Consortium Ltd.
The scheme was heavily marketed through television, radio (including Classic FM and LBC), newspaper advertisements, and hotel conferences around the country. During the Covid-19 pandemic, Buy 2 Let Cars promoted its vehicles as a safe way for key workers to travel to work, attracting further investment. Over nine years of operation, the company attracted hundreds of British savers who collectively paid in approximately £88 million.
Buy 2 Let Cars Ltd was not authorised or regulated by the Financial Conduct Authority. The car leasing element was conducted through Raedex Consortium Ltd (FRN: 668924), which held FCA authorisation for consumer hire activities. However, the investment scheme itself — through which members of the public lent money to Buy 2 Let Cars — was entirely unregulated, meaning investors had no access to the Financial Services Compensation Scheme or the Financial Ombudsman Service at the time of investment.
How the Buy 2 Let Cars Scheme Worked
The scheme operated through a group of interconnected companies within the Raedex Consortium:
- Buy 2 Let Cars Ltd — the investment-facing entity that sought loans from investors
- Raedex Consortium Ltd — the FCA-authorised parent company that leased vehicles to consumers under the trading name Wheels4Sure
- Rent 2 Own Cars Ltd — a subsidiary that purchased vehicles using investor funds via intercompany loans
- PayGo Cars Ltd — sold second-hand vehicles previously leased through Raedex
The investment cycle worked as follows: investors lent money to Buy 2 Let Cars Ltd, which passed the funds to Raedex and Rent 2 Own Cars via intercompany loans. These companies used the money to purchase new vehicles, which were then leased to consumers through Wheels4Sure at rates significantly above market value (approximately £249 per month compared to £179 through standard channels). Investors received monthly payments from the lease income, and at the end of the three-year term, they were promised a substantial lump sum return.
However, consumer campaigner Mark Taber and former Which? financial services policy leader Dominic Lindley raised concerns with the FCA as early as 2019, noting that the business model did not appear financially viable. The company had reported massive losses and negative assets year after year, suggesting it was reliant on new investment to pay returns to existing investors — a hallmark of a Ponzi-style scheme.
The Collapse and Criminal Investigation
On 19 February 2021, the FCA imposed restrictions on Raedex Consortium, requiring it to cease all regulated activities due to serious concerns about its finances. Buy 2 Let Cars subsequently stopped accepting new investments. Less than a month later, on 15 March 2021, the directors appointed RSM Restructuring Advisory LLP as administrators over Raedex, Buy 2 Let Cars Ltd, and Rent 2 Own Cars Ltd.
On 8 April 2021, the Serious Fraud Office (SFO) launched a formal investigation into suspected fraud in relation to the activities of the Raedex Consortium. The SFO searched the homes of Reginald Larry-Cole and Scott Martin and conducted interviews. In October 2021, Larry-Cole was arrested after being assessed as a flight risk.
On 19 January 2024, the SFO charged both Reginald Larry-Cole and Scott Martin with three counts of fraud each. The charges allege that the defendants provided investors with false information, encouraging people to pay into the scheme whilst knowing that investments were not in reality backed by the cars they had been promised. On 6 December 2024, both defendants pleaded not guilty at Southwark Crown Court. The trial is listed to commence on 14 September 2026 and is expected to last 13 weeks.
In May 2024, the Financial Services Compensation Scheme (FSCS) determined that the Buy 2 Let Cars investment scheme constituted an unauthorised Collective Investment Scheme and declared Raedex failed on 30 April 2025, opening the door for eligible investors to submit claims.
