Finance company's?

[Alfie walker 0]

Just Registerd with the fca, now on the look out too offer finance. What finance company's does every one work with? Is there any to avoid? Reasons to avoid them? Thanks in advance

[Tadams 29]

I believe Zuto are now brokering deals and pay a commission also.

Not found better service from a broker yet when they've sent us customer's and am getting the same service when we've propped to them, keep us up to date on where the customer is up to and advise on the rates and payments the customer has been approved for so we are in the know too. 

[Alfie walker 0]

Sounds good, thanks for your reply. I've gave motonovo a call and am awaiting there call back. Will give zuto a call.

[trade vet 704]

Hi Alfie,

Finance companies...be careful ! you may be offered good commission rates but it can be clawed back.You have to be mindful of the rates and terms contract.e.g. If a hirer misses 3 monthly instalments your commission will be clawed back ! That could mean ( or did in our case) if the hirer misses 3 different instalments by one day your commission will be clawed back ! Also,after a while you may want to move to another finance company who are offering a better deal.You may be asked to pay a lump sum to cover any potential  shortfalls in the outstanding cases you have received commission for ! That is the downside,but if you have a good finance company and do the business for them,you will get looked after- corporate events,away days,volume bonuses etc

[Tadams 29]

16 minutes ago, trade vet said:

Hi Alfie,

Finance companies...be careful ! you may be offered good commission rates but it can be clawed back.You have to be mindful of the rates and terms contract.e.g. If a hirer misses 3 monthly instalments your commission will be clawed back ! That could mean ( or did in our case) if the hirer misses 3 different instalments by one day your commission will be clawed back ! Also,after a while you may want to move to another finance company who are offering a better deal.You may be asked to pay a lump sum to cover any potential  shortfalls in the outstanding cases you have received commission for ! That is the downside,but if you have a good finance company and do the business for them,you will get looked after- corporate events,away days,volume bonuses etc

WOW never knew some brokers wrote that into the contracts ! I think the one we signed was if it unwinds within the first month they get the £150 back, which makes sense i guess. 

Edited August 29, 2017 by Tadams

[Alfie walker 0]

29 minutes ago, trade vet said:

Hi Alfie,

Finance companies...be careful ! you may be offered good commission rates but it can be clawed back.You have to be mindful of the rates and terms contract.e.g. If a hirer misses 3 monthly instalments your commission will be clawed back ! That could mean ( or did in our case) if the hirer misses 3 different instalments by one day your commission will be clawed back ! Also,after a while you may want to move to another finance company who are offering a better deal.You may be asked to pay a lump sum to cover any potential  shortfalls in the outstanding cases you have received commission for ! That is the downside,but if you have a good finance company and do the business for them,you will get looked after- corporate events,away days,volume bonuses etc

Thanks for your reply, I had even thought about things like that. Who do you use if you don't mind me asking?

[trade vet 704]

44 minutes ago, Alfie walker said:

Thanks for your reply, I had even thought about things like that. Who do you use if you don't mind me asking?

We have used the major finance houses for years.However if you are a start up,you will just have to do the best you can and use brokers.When you can demonstrate you have a sound business and produce accounts,you should be able to  attract support from the likes of Black Horse,Santander,Close etc.I would say don't get roped into attracting sub prime business.That means sub prime negative equity swappers which could mean that sometime in the future the VAT people could be chasing you for extra VAT on negative equity balances because of incorrect invoicing.Its a minefield !

[Alfie walker 0]

Thanks for your reply mate, has made me abit more cautious on how to go about it. Cheers

[BCC 9]

Close are very good with new starters, I would give them a call/

[Motorcare UK 0]

Another vote for Close here.

Really helpful, easy proposals and decent rates and commissions. We are only a small set up and don't do that much finance but Close have been great for our business.

[Alfie walker 0]

Thanks for both your replys, another question I havnt paid my fca yearly fee yet I understand the fees are different depending on what services you offer. What does everyone pay for there fee? Thanks in advance 

[Alfie walker 0]

For anyone interested I just messaged zuto via live chat and had this response.

Due to a recent review ing are dealer criteria we an not taking inquiries directly from dealerships. However, if a customer was interested in one of your vehicles we would then be able to look at working with you. The customer would need to give us your details.

[Rory RSC 596]

Some terrible advice being dished out here. Trade vet come on it is not all doom and gloom.

 

Get a finance company to set you up, Close or Motonovo, get a broker to help with the declines do not use Jigsaw the automatic broker Close send declines to.

Close pay more Commission and are a lot more helpful and supportive when setting up. Need anymore help or advice PM me.

[grant8064 219]

We use Motonovo and they're pretty good. The portal is really easy to use, point of sale stuff is nice, decisions are made quite quickly and acceptance rates are predictable.

I think the most important thing for a starter is know what you are signing up to (read the terms) and make sure you get on well with your rep. Ours is a nice guy and works hard for us on tricky bits. Get your rep to give you a bit of training because it's something you want to approach with confidence when in front of a punter and you need to know what you're talking about.

[trade vet 704]

27 minutes ago, Rory RSC said:

Some terrible advice being dished out here. Trade vet come on it is not all doom and gloom.

 

Get a finance company to set you up, Close or Motonovo, get a broker to help with the declines do not use Jigsaw the automatic broker Close send declines to.

Close pay more Commission and are a lot more helpful and supportive when setting up. Need anymore help or advice PM me.

Hi Rory,I wasn't inferring it was doom and gloom.Anything I say is based on past experience.I think start ups should know of any potential downsides.I think I am qualified enough to comment on most things in our business apart from stocking loans as I have never needed one.I was not trying to discourage Alfie at all. Also,In my experience,I found Close to be very good.You can ask me anything about this business and I will try and help.

[Alfie walker 0]

1 hour ago, Rory RSC said:

Some terrible advice being dished out here. Trade vet come on it is not all doom and gloom.

 

Get a finance company to set you up, Close or Motonovo, get a broker to help with the declines do not use Jigsaw the automatic broker Close send declines to.

Close pay more Commission and are a lot more helpful and supportive when setting up. Need anymore help or advice PM me.

Thanks a lot rory, much appreciated .

Thanks for everyone else's replys

 

[Tadams 29]

1 hour ago, Alfie walker said:

For anyone interested I just messaged zuto via live chat and had this response.

Due to a recent review ing are dealer criteria we an not taking inquiries directly from dealerships. However, if a customer was interested in one of your vehicles we would then be able to look at working with you. The customer would need to give us your details.

Hiya Alfie, 

Got us abit panicked there, just called our rep and they have said it was a mistake made by the operator on the live chat, best bet is to give them a call on 01625 619 944 and ask for the dealer referral team  

[Alfie walker 0]

5 minutes ago, Tadams said:

Hiya Alfie, 

Got us abit panicked there, just called our rep and they have said it was a mistake made by the operator on the live chat, best bet is to give them a call on 01625 619 944 and ask for the dealer referral team  

  thanks mate 

[GreenGiant 287]

2 hours ago, Alfie walker said:

Due to a recent review ing are dealer criteria we an not taking inquiries directly from dealerships. 

Irrespective of whether this is true or not, if this is the quality of message coming from their dedicated communication team, they should be seriously worried.

Shocker.

'are' instead of 'our'?

ffs.

[BCC 9]

Evolution are quite good for subprime or Neg EQ but will need first year accounts usually.  

To start with I would just go with Close Brothers. Easy to set up with, decent account managers, use of Jigsaw broker for anything Close doesn't approve.  Id avoid Santander, nightmare to set up with and decline most applications other prime lenders would approve.

[andymc1973 199]

get a good broker

[Alfie walker 0]

Thanks everyone for your replies they've helped a lot, what does everyone's fca fee cost them a year so I know I am choosing the right tarif. Thanks

[grant8064 219]

1 hour ago, Tadams said:

Hiya Alfie, 

Got us abit panicked there, just called our rep and they have said it was a mistake made by the operator on the live chat, best bet is to give them a call on 01625 619 944 and ask for the dealer referral team  

They phoned me today touting for business so they're definitely still taking stuff on!

 

Zuto would not be my first choice because the commission is capped for us at £150 per deal which is kind of laughable IMO and they've never sent a rep out to say hello or supplied any point of sale material.

On 29/08/2017 at 1:49 PM, Alfie walker said:

Just Registerd with the fca, now on the look out too offer finance. What finance company's does every one work with? Is there any to avoid? Reasons to avoid them? Thanks in advance

Where about are you Alfie? If you're in the South East I can recommend a couple of good reps who are a pleasure to deal with

[Arfur Dealy 823]

Alfie, remember this. You are your own business, a finance company should work for you, not the other way around. You earn them considerably more ££££s than what they will pay you. It's a necessary evil, just make sure the cards are stacked fairly. 

[Alfie walker 0]

33 minutes ago, grant8064 said:

They phoned me today touting for business so they're definitely still taking stuff on!

 

Zuto would not be my first choice because the commission is capped for us at £150 per deal which is kind of laughable IMO and they've never sent a rep out to say hello or supplied any point of sale material.

Where about are you Alfie? If you're in the South East I can recommend a couple of good reps who are a pleasure to deal with

I am based in Essex. Cheers 

 

18 minutes ago, Arfur Dealy said:

Alfie, remember this. You are your own business, a finance company should work for you, not the other way around. You earn them considerably more ££££s than what they will pay you. It's a necessary evil, just make sure the cards are stacked fairly. 

Yeah I have been told this but I'm new to all of the finance side so want to approach it correctly. Cheers