Jay@DNA

Charging for finance application

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I am not FCA registered yet and debating.

I know this is a bit "how long is a piece of string" but would you recommend funding for my stock profile (between £3k to £7k but mainly £5k).  

Am I right to presume that will attract a lot of sub prime and very little comms? 

What would you anticipate commission for prime/subprime on £5k advance?

Only asking because I already accept CC and my cars are easily credit cardable...

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1 minute ago, Mark101 said:

I am not FCA registered yet and debating.

I know this is a bit "how long is a piece of string" but would you recommend funding for my stock profile (between £3k to £7k but mainly £5k).  

Am I right to presume that will attract a lot of sub prime and very little comms? 

What would you anticipate commission for prime/subprime on £5k advance?

Only asking because I already accept CC and my cars are easily credit cardable...

In my mind, there are only positives to have by being FCA registered. 

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1 minute ago, Mark101 said:

I am not FCA registered yet and debating.

I know this is a bit "how long is a piece of string" but would you recommend funding for my stock profile (between £3k to £7k but mainly £5k).  

Am I right to presume that will attract a lot of sub prime and very little comms? 

What would you anticipate commission for prime/subprime on £5k advance?

Only asking because I already accept CC and my cars are easily credit cardable...

Yes you got more with prime customers for sure

The longer the term the better, it also depends who you use.

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On a 5k advance, you could get £500 depending on your finance company. However, the commission is just a bonus in my view. If it helps you sell a car....why would you not offer it?

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Had a CCL and now FCA. Been happily taking the commission on finance sales for the last 5 years. Had our first finance clawback this week due to a repossession (-£464). Just shows don't count your chickens until 6 months have passed in the case of a finance settlement, or in the case of a repossession at any time (on a reducing clawback value basis).

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You need to dump that finance company and move to one that doesn't claw-back.  Like Blue Finance.

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1 hour ago, MSP Motors said:

Not Quite, 11 year old bentley with 30k advance.

Very nice! 

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Got to ask yourself would you happily sell the car to a walk in for screen price.

Would you happily sell it to a walk in that takes 15minutes to prop and e sign and gets you an extra £200/£400 / £1000+ for doing the same deal.

I would rather sell everything on finance.

Sub prime is next to no commission and generally get the customers that love to complain and kick off rather than bring just bring it back and get it fixed:rolleyes:

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Hi Mark

 

I think you have a couple of things to consider.

Are you concerned about the risk of any customer trying to bounce a car back to you in the future using rights which are only there because they have the finance company behind them? I dont think this worries you because you are prepared to take a credit card which gives the customer the same rights.

Your time may be wasted and on occasion, cost you a deal - for example, someone leaves a deposit on a car, then fails a finance prop. do you put it back on sale and sell it to someone else or keep it off sale and prop the finance customer everywhere until you know its going nowhere. I know this situation is less of a concern, but a possibility nonetheless. We have all had 2 people on the same car at the same time before.

The commission side is attractive but if you are taking a credit card and paying the associated charges then even if there is no commission you will be better off.

I personally dont do finance at the moment but do one every month or so to a Zuto customer. I dont get any commission and the customers are normally a bit 'scatty' and disorganised but the payout is always prompt and they dont ask for a discount on the car.

Hope this helps

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2 hours ago, NOACROSS said:

You need to dump that finance company and move to one that doesn't claw-back.  Like Blue Finance.

Early settlements,cases going legal or hirer not paying any 3 instalments on time etc etc....and no claw backs ?

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This was answered by Natalie from Blue on another thread. 

From memory: no claw backs as long as the punter pays first couple of months. 

Its only happened to me once over the years as the bastard decided to pay off the loan early (very sensibly from his point of view). 

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44 minutes ago, NOACROSS said:

This was answered by Natalie from Blue on another thread. 

From memory: no claw backs as long as the punter pays first couple of months. 

Its only happened to me once over the years as the bastard decided to pay off the loan early (very sensibly from his point of view). 

You are right,no clawbacks for early settlements after 3 months instalments.I was interested to know how they could afford to do that but I now understand that the ‘Rule of 78’ for settlements is no longer applicable.( so settlements must now be higher )........I would like to read their rates and terms,very interesting......We used to get regular clawbacks for early settlements plus the cases which went legal. Black Horse would often point out the legals but we would argue that it was their underwriters fault for taking risks and costing us money.It is not that long ago when we made very little profit on the ‘metal’ but plenty on finance and volume bonus which were free of VAT.....past glories again !

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Get yourself a premium rate phone number whilst your at it.

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On 04/08/2018 at 1:12 PM, Mark101 said:

I know this is a bit "how long is a piece of string" but would you recommend funding for my stock profile (between £3k to £7k but mainly £5k).  

Am I right to presume that will attract a lot of sub prime and very little comms? 

What I will say to anyone in this price bracket is to go have a look at a few auction sale sections by big finance companies if there are any near you (Black Horse, Moneybarn, Santander etc). 

When you see the values and the condition of the cars that go through these sales you'll know if they attracts prime, subprime or the plain crazy :-)

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On 03/08/2018 at 9:28 AM, Nick M.K. said:

I actually know a dealer in Bedfordshire that charges £50 "test drive deposit" so it seems your idea might just catch on :-)

One near charges £25 for test drives , loses him lots of sales and we have picked up a few from him because of it too . 

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Do really work for CFG or are you actually one of their rivals who have come on here to spam everybody in an attempt to damage CFGs business by annoying multiple dealers.

If so may I congratulate you on a successful operation Sir!

Do really work for CFG or are you actually one of their rivals who have come on here to spam everybody in an attempt to damage CFGs business by annoying multiple dealers.

If so may I congratulate you on a successful operation Sir!

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