Leaderboard

They cant add up can they . Next Gear charge so many different fees it confuses people , Seen it mess with peoples heads quite bad Also with stocking funds at low rates from Finance houses , come reciprocal business using their Finance to a level that's quite high , if not reached its a big jump on interest. Only one way i think Start low , Start slow , Reinvest and grow slowly to start and then it speeds up as you go , Benefit it ITS ALL YOURS , some big companies are up the creek without a paddle if they sold up as they would have nothing left after pay back .

I wouldn’t know but not that long ago we had someone on this forum informing us his stocking loan cost something paltry like a few quid a car. I suspected I could smell b/s at the time.

Chucky

You are very fortunate.Stick to what you are doing,don’t change your stock,keep your day job etc .Sounds ideal.

Never had a stocking loan but are BCA still throwing money at dealers like no tomorrow?

Agree, this is what I’m doing, have the luxury of doing it whilst still holding down another full time job, so it’s maybe not possible for everyone to do it this way. Started 2 years ago with £10k and 2 cars, business now worth something like £90k with 8 cars. Not saying this is a good performance, feels pretty slow actually, but I own it all and owe nothing to nobody. As you say David, it’s gathering pace now as the more cars you have the more you sell.

I have looked at the likes of nextgear etc and by the time you look at all the fees etc it equated to something like the equivalent 10-12 flat which is quite a chunk, unless you have a decent cash buffer as well i can see how you can come a cropper if you are late/miss the repayment schedules overdrafts tend to be able to be pulled on a whim if the lender chooses and be prepared to justify your existence to them yearly if your running at your limit mostly. If i had to choose between the two i would go down the overdraft route as long as it's on decent terms but be prepared to sign personal guarantees.

Cazoo are new and they had £33m in year 1.Which was £9m @ 3.75 over base and 1.75 over for the rest which cost them £460k.They probably get preferential terms.Never had a stock loan but I think they are repayable on demand ( that means any time ,any reason and they can please themselves like an overdraft )secured against the stock with your personal guarantee.It may not be such a big risk for Cazoo but I think smaller guys could potentially lose their house if the lender decides to pull the plug.However I have no idea whether dealers have a better alternative.

I applied this week but because I have only been trading 8 months they couldn’t look at the application even with management accounts and VAT registration. I think they would need a decent bit of trading history so depends on how new is new.