Newbie to finance?

[CGF 3]

Afternoon everyone

As above really, any pointers or advice?

Having run for a couple of years selling a few £1k to £4k cars alongside the workshop business, that side is doing ok but we're short on space. We've just secured a nice little unit in a local mill complex that'll hold 15 or so cars and enable us to expand slightly.

Regarding warranties, I've always 'self administered' as I try to ensure everything we sell is as right as possible in the workshop first before it's advertised. It's always gone ok so the idea is to continue, although I intend to take a closer look at the Lawgistics offerings.

When it comes to finance, however, I'm a complete newcomer and would welcome any advice given! 

We should be getting the keys in about 6-7 weeks so I'm keen to start getting things in order now and I really feel like we should be offering finance facilities to maximise as many potential sales channels as possible. 

Ive heard good things about Close brothers and not so good things about other companies...please feel free to offer as many words of wisdom as possible!

Thanks,

Neil

[betginge 73]

Depends what type of finance firms you want on aboard and your customer base, where abouts in the uk are you out of interest and what price and age of vehicles are you selling.  ?

 

[CGF 3]

We are in the north west, on the Yorks/Lancs border.

Looking at the £2.5k - £6k end of the market, 4-8 year old small and family stuff. Not really interested in sports/prestige, I tend to look out for low mileage, good historied run of the mill cars, always seemed to do ok.

To be honest, I'm not sure how much demand there is for finance for this type but if it results in sales we wouldn't otherwise get, then it must be worthwhile. The whole sub-prime market interests me...I feel there must be a market for better quality cars but perhaps your typical sub-prime client just wants maximum flash?

As I say, it's a new area for me....spent years and years with a 'banger pitch' in a large city that did very well back in the 90s but that end of the market would fill me with dread nowadays, what with everyone being a consumer law specialist in their spare time.

[First Response 2]

Hi @CGF,

If you have got your FCA permissions or are in the process of getting them then we could look at getting you on our system if you wish. We're a UK lender who can offer the full spectrum of finance (prime to sub-prime).

If you're interested and want to find out more about us you can download our Who We Are booklet using the link below. You can then give us a call on 0115 946 6260 and ask to be set up as a new dealer or drop us an email at marketing@frfl.co.uk

https://www.firstresponsefinance.co.uk/who-we-are/

Thanks, the marketing team.

[betginge 73]

23 hours ago, CGF said:

We are in the north west, on the Yorks/Lancs border.

Looking at the £2.5k - £6k end of the market, 4-8 year old small and family stuff. Not really interested in sports/prestige, I tend to look out for low mileage, good historied run of the mill cars, always seemed to do ok.

To be honest, I'm not sure how much demand there is for finance for this type but if it results in sales we wouldn't otherwise get, then it must be worthwhile. The whole sub-prime market interests me...I feel there must be a market for better quality cars but perhaps your typical sub-prime client just wants maximum flash?

As I say, it's a new area for me....spent years and years with a 'banger pitch' in a large city that did very well back in the 90s but that end of the market would fill me with dread nowadays, what with everyone being a consumer law specialist in their spare time.

 

Glad to hear your not opening up on my patch Only kidding lol. We are due to open our new pitch in this field in less than 2 weeks time.

IMO near / sub prime is the future, there is lots of lenders out there offering finance, and there is no trying to smartly price your vehicles to compete with the dealer next door or AT. If you work it right it can work very well. fellow traders I know have moved into this field in the last few years and its changed there lives.

Lots of fellow traders recommend First response, well worth having on your lending panel. I myself intend to sign up with them this week all being well. 

 

Good luck, and keep in touch with the forum, there are some great guys on here with lots of experience and wisdom.