Why can't I rent out high-value goods to people in the UK?
June 7, 2014 6:29 AM Subscribe
So this may sound dumb, and obvious.... I'm just thrashing out a question that I've been discussing with a couple of friends recently.
Let's say I legally purchase a batch of high-value, trendy goods. It doesn't really matter what they are -- let's say the latest iPhone, for the sake of argument. Can I set up a store (online or in the high-street) renting them out to anyone who wants to agree to a contract with me? So let's pretend an iPhone 6 will retail at £500. If I purchase a batch of 100 at £400 each, and rent them out at £25/month for a 2 year contract, I make a good profit.
Assume the iPhones are genuine, and that purchasers/renters are happy to arrange their own SIM cards, telecomms contracts, etc. These are working items.
What are the reasons I couldn't do this? Is there any legal reason, or trading standards reason, that would prevent me from setting up a business doing this?
posted by ajp to Law & Government (21 answers total) 2 users marked this as a favorite
I appreciate that their may be practical problems and risks, such as:
Setting up a legal entity for the business.
How to deal with faulty goods.
Dealing with items broken by the renter.
Failure of people to pay, or people who cancel standing payments etc.
Competition would be massive.
Getting a decent price for the units.
Contacting the root provider - Apple, let's say - without being a recognised reseller.
Etc etc etc.
I'd less interested in hearing about such practical problems, although if you can think of a real show-stopper then do say.
This is a thought-exercise, it's about exploring the legal and trading reasons this sort of business might be impossible, or very very difficult, to set up.
I feel certain I'm being naive. Feel free to tell me so :)
Many thanks, hive-brain.