Recover Money Lost to Wheels4Sure

What Was Wheels4Sure?

Wheels4Sure was the consumer-facing car leasing brand operated by Raedex Consortium Limited (FRN 668924), an FCA-authorised motor finance provider. The company leased vehicles to consumers with poor credit histories, positioning itself as an accessible alternative to traditional car finance. Wheels4Sure was part of a wider group that included Buy2Let Cars Ltd, Rent2Own Cars Ltd, and PayGo Cars Ltd, all ultimately controlled by director Reginald Larry-Cole.

The group operated from 2012 to 2021, attracting hundreds of British savers to invest approximately £88 million through the Buy2Let Cars investment scheme. Investors were promised annual returns of up to 11% on a minimum investment of £7,000 over three years, with their money supposedly used to purchase new vehicles that would be leased out via Wheels4Sure.

The scheme was widely marketed through television, radio, and newspaper advertisements, as well as at hotel conferences around the country. During the Covid-19 pandemic, the company promoted its vehicles as a safe way for key workers to travel to work, attracting further investment. Many of those who invested were first-time investors, drawn in by what appeared to be a straightforward, asset-backed opportunity.

How the Wheels4Sure Investment Scheme Worked

The investment model operated through a series of interlinked companies within the Raedex group:

• Investor recruitment: Buy2Let Cars Ltd sought loans from investors, promising annual returns of up to 11% over a three-year fixed term. The minimum investment was £7,000, and investors received monthly payments with interest paid at the end of the term.
• Fund flow: Investor money was passed from Buy2Let Cars to Raedex and Rent2Own Cars via intercompany loans. These funds were supposed to be used to purchase new vehicles from manufacturers at deep discounts.
• Vehicle leasing: The purchased vehicles were then leased to consumers with poor credit ratings through the Wheels4Sure brand. Monthly lease payments collected from these consumers were intended to fund investor returns.
• Secondary sales: PayGo Cars Ltd sold second-hand vehicles that had previously been leased through Wheels4Sure, generating additional revenue for the group.

However, the FCA’s investigation revealed serious discrepancies in this model. The regulator found that Raedex had £14 million in assets against £34 million in liabilities, meaning the business was fundamentally insolvent. The company had lost £10.5 million over three years and would have needed £34 million injected over the following three years simply to meet its obligations to investors.

Further investigation revealed that from a sample of 102 cars, 55 were secondhand — despite the company claiming its fleet was predominantly new. Two vehicles could not be found on the DVLA database at all, and 18 lease agreements were registered as starting before the vehicle was even on the road. The company valued its fleet at £19 million when the true value was closer to £14.4 million, and had improperly booked £7.5 million in future lease payments as “goodwill” assets.

The Serious Fraud Office has alleged that investors were provided with false information and encouraged to invest while the directors knew that investments were not in reality backed by the cars they had been promised.