SK Motors

Accepting Finance ?

26 posts in this topic

I've been looking into accepting finance over the last couple of days and after searching on here I've approached Zuto.

I've explained to them that I'm a sole trader trading from home and I'm not FCA registered.  They said this wasn't a problem and as long as I could provide proof of address/bank account/trading etc then I should get approved. 

Well they've come back to me and said I'm now approved on their system and "we're good to go". They didn't give me any more information so I had to contact them and ask. They've told me that as I'm not FCA registered I'm not allowed to advertise that I can accept finance ! If the customer approaches Zuto of their own free will then that's fine but I can't advertise that !

Is that correct as my understanding was that I'm not actually providing finance myself and not making commission etc ?

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36 minutes ago, TDB said:

I believe YOU are correct.

As in I can add to a vehicle advert saying something like "Finance might be possible on this vehicle if you apply to Zuto" ?

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If you're not FCA registered then i believe you can't mention anything to do with credit or finance in your ads.

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If you selling a few cars it might be worth getting a FCA licence. It's not difficult to apply and it's only few hundred pounds. If you feel you are lossing customers due to no fiance option available or could gain more sales by offering, then you should get registered.

 

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35 minutes ago, justina3 said:

thought it was a lot more than a few hundred pounds these days

Not at all and apparently the turn around time is pretty quick at the moment, I've heard of people recently getting sorted within a month.

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The interim permission starts from £100 but most pay £500, the full permission is a few grand but that is not needed for car brokerage. According to there latest figures they are turning around applications between 10 - 30days 

justina3 and SK Motors like this

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I got my license sorted in 11 days..  to be fair i had a finance company rep come and help me with the application, as it would have taken me a few hours to complete and he sorted it in less than an hour. Permission granted!! you just need to keep remembering to check gabriel for updates!!

 

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I would say get a finance rep on board and say that they'll be getting your business if they help you with the setup - they will guide you right through it.

Although i don't use them CBMF meant to be very helpful in that respect

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been watching this thread, still one niggle in my mind is the post about the finance company ringing up with a complaint from a customer months after the car warranty has run out, just wondering what's the deal regarding those circumstances. 

 

 

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You need to read the T & C's that you the dealer have agreed to with the finance company.

Some lenders altered their T & C's when the CRA 2015 came in.

The burden falls with the dealer NOT the lender.

justina3 likes this

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cheers for that Mr Cornish Guy do i presume that each dealer has different t & c so the duration you could be held liable for differs ? is there a general rule of thumb 

 

 

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It was discussed elsewhere over a year ago that a certain finance company whose name rhymes with Pluto was changing it's T & C's. Basically, if they refunded the customer, it was their right to reclaim off you, No ifs or buts.

We don't deal with them, so I don't know what is in their T & C's.

justina3 likes this

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'Newbie' here so sorry for an obvious/sill question.  Do any of these finance companies offer regular loans or only HP/PCP?  Is it maybe related to credit worthiness?  See lot's of posts about sub-prime so are these finance companies only aimed at these type of customers?

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sub prime are secured loans against the car not personal loans. HP 

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betginge.... ah, that makes sense so no credit checking required.  Thanks for the enlightenment !

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They do check the credit file of applicants, where I think you are getting confused is credit scoring. 

Most prime lenders use scorecards to approve finance, A few details in the system and yes or no given.

With sub prime it's more based on the person's ability to pay, balanced against  their credit history. Manual underwriting. 

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On 09/01/2017 at 6:07 PM, Mat C said:

I got my license sorted in 11 days..  to be fair i had a finance company rep come and help me with the application, as it would have taken me a few hours to complete and he sorted it in less than an hour. Permission granted!! you just need to keep remembering to check gabriel for updates!!

 

Care to share company name mate ? 

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Close motor finance will help with forms, also good lender to have on board for prime customers. Seem to have some good rep close brothers. 

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On 01/05/2017 at 7:13 PM, D1991 said:

Care to share company name mate ? 

It was Close, However they took so long to get me set up that I went with MotoNovo in the end. Great easy company to deal with 

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On ‎06‎/‎01‎/‎2017 at 2:20 PM, justina3 said:

thought it was a lot more than a few hundred pounds these days

£100 FCA fee, I have submitted many on behalf of dealers...

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I've recently registerd with the fca and took about 3 n half weeks, I havnt paid the fees yet though apart from the £100 to submit the form. What does everyone pay a year?

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18 hours ago, Alfie walker said:

I've recently registerd with the fca and took about 3 n half weeks, I havnt paid the fees yet though apart from the £100 to submit the form. What does everyone pay a year?

Depends on finance commission, here is the FCA calculator

Edited by Becca Chaplin
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