Rent 2 Own Cars Shonky

SpotAShonky
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An article regarding A Current Affair investigation into Rent 2 Own Cars.

https://9now.nine.com.au/a-current-affair/angry-customers-allege-australian-business-rent-2-own-cars-tried-to-rip-a-lot-of-people-off-after-list-of-car-fails/85f210cf-a865-46d4-987d-e3b32a53d58a

And the ASIC document regarding the Federal Court case.

https://asic.gov.au/about-asic/news-centre/find-a-media-release/2020-releases/20-213mr-court-finds-used-car-financier-rent-2-own-cars-australia-acted-illegally-in-providing-high-cost-credit-to-consumers/

The business is now apparently operated by R20 AUST PTY LTD which has never been registered for GST according to ABN Lookup which seems exceptionally unusual.

https://abr.business.gov.au/ABN/View?abn=38132124620

ASIC lists RENT 2 OWN CARS AUSTRALIA PTY LTD as being registered but it seems very strange that someone would have bought this company as claimed in the ACA article whilst ASIC and the Federal Court decides the magnitude of the fines.

RENT 2 OWN CARS AUSTRALIA PTY LTD appears to be the auto industry’s answer to the disgusting payday lenders.

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Looks familiar to those who bought cars and other things under what was called “hire purchase” years ago and banned years ago. High interest and no ownership until the final payment made.

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Without looking into the details of this company or this case, so just making general comments …

Finance itself is not subject to GST. By not registering for GST, it means they can’t get a credit for GST paid on inputs - but maybe it works out.

Possibly the conditions of sale account for the unknown future fine.

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