Offering car finance

[Grantlfc81 88]

Hi, 

just looking at our first car plot, and would like to offer car finance.

who are the best for people with decent credit history? Close brothers?

also I see some people offering guaranteed Car finance? Who should I use for sub prime?

 

thanks in advance

grant

[Beautiful South Martin 24]

I use Close Brothers and they are brilliant. They helped me do all my FCA application, which is a bit of a minefield. Easy online proposal form, very quick payout, normally same day, and some decent commissions too, which arrive in a nice cheque every 4th day of the month. Staff are very helpful and you genuinely feel they are there as your business partner.

We push finance quite hard, full credit example on the car screen and in the adverts also. They have a 2nd string they use called Jigsaw finance, it automatically goes to them unless you un-tick the box if its a decline. we have used them once for a deal they accepted and they were an absolute nightmare, totally unprofessional, so we always un-tick the box now with the prop. If its a decline we use First Direct Finance, once set up, online portal, nice and easy to use, no commission but if it gets the deal on worth using.

 

 

[Tadams 29]

We use Zuto to broker the sub prime stuff, always found them a pleasure to deal with when they have sent customers our way.

x17 Lenders and will pay £150+VAT for anything that pays out but you do need some permissions to be able to prop to them, no portal as such yet but you can email the prop over or they send you a unique link which is an application form traceable back to the us and all the props go through a team put together for dealer props so quite a bespoke experience for the customer i'm told

£150+vat isn't amazing but its better than £0 and they sign the customers up for us and sort the proofs so we just have to provide an invoice. 

[grant8064 219]

We're with Motonovo.

Really good online portal, quick decisions and the commissions are healthy.

I used Zuto last week for the first time in ages and I cannot understand how you guys deal with them...archaic system and a nightmare to get a decision out of. Amateur hour IMO.  

[Rory RSC 596]

2 hours ago, Tadams said:

We use Zuto to broker the sub prime stuff, always found them a pleasure to deal with when they have sent customers our way.

x17 Lenders and will pay £150+VAT for anything that pays out but you do need some permissions to be able to prop to them, no portal as such yet but you can email the prop over or they send you a unique link which is an application form traceable back to the us and all the props go through a team put together for dealer props so quite a bespoke experience for the customer i'm told

£150+vat isn't amazing but its better than £0 and they sign the customers up for us and sort the proofs so we just have to provide an invoice. 

How long until 'Your customer' you sent them, is 'Their Customer' and gets sent to another garage with no regard for you?

Come changeover cycled you think Zuto will give a stuff about that customer coming back to you? They will be actively targeted and it won't be to push them into one of your cars.

I take the deals they send my way, but I would never refer a customer to them. 

Far more brokers out there paying a lot more money than they do. We are here to make as much as possible.

[Tadams 29]

Not had it happen to me as of yet.. and why would they ?

i get paid for the referral if the customer buys my car or not but its more beneficial to keep me happy so ill send them more customer's and visa versa.. it actually works quite well that they trust me with their customer's (i don't place them) and them with mine, they must have 100k's of customers still looking for a car on their stock search and ill have as many as they can give me.. like you say we are here to make money.  

As i mentioned above i'm told it's a "bespoke journey" so referrals don't have the stock search access to keep them focused on my car to avoid what you have mentioned. 

Maybe i'm wrong but the opportunity of a good working relationship with a business that have a hell of a lot of pre approved customers still looking for cars that i can have at no charge is a no brainier...maybe Close would pay me more comms but iv'e never has a customer sent from them to me? so bigger picture i'm better off. 

we will see i guess... 
 

[trade vet 703]

If you sell good stuff,you will attract prime finance punters and earn better commission.These punters often have swappers you can retail and  often become regular customers in the future.Near prime is OK,but forget subprime,awful punters,dodgy swappers,no commission and they rarely buy another car.We just tell them,if you want sub prime finance,get your own.

[NOACROSS 414]

I dunno- we use the excellent Motonovo first and then Mallard next; who in turn prop up to advantage & Moneybarn for the sub-prime without us getting involved. Have no trouble at all with them, plus we always get paid swiftly & it adds a few extra deals on a year thanks to it.  Swappers are down to you whether you take them in or not or how you value them. If they're crap I sidestep them.  It isn't usually a deal breaker I've found. 

We are in a fairly affluent area in the South, so maybe that's different to other areas experiences?

I also have good dealings with First Response Finance for the sub-prime. 

[Cornish Guy 45]

Just make sure this or something just as onerous is not in the T & C's that you have signed.

 

" “12.2 Where the customer had defaulted on his obligations under the Credit Agreement the dealer shall use its best endeavours to collect monies from the customer to MotoNovo under a Credit Agreement”.

So, in the credit agreement between MotoNovo Finance and its customer, the dealer seemingly becomes a default debt collector should Moto Novo’s customer not meet its obligations to pay monthly under the credit agreement? "

 

Just been posted by a friendly law firm!

[justina3 518]

I think the wording there is far to vague to be of major concern ie define "best endeavours" is that a phone call an email two letters a house brick through the window.

 

[trade vet 703]

42 minutes ago, justina3 said:

I think the wording there is far to vague to be of major concern ie define "best endeavours" is that a phone call an email two letters a house brick through the window.

 

Sounds like a good excuse for them to claw back commission.I recall when our rates and terms contract stated that if a hirer failed to make three payments,our commission would be clawed back.Sounded fair enough to me,except what it meant was when a customers direct debit may have been a day late ( through no fault of their own ) say once per year during a 3 year agreement,your commission would clawed back !

[grant8064 219]

5 hours ago, Cornish Guy said:

Just make sure this or something just as onerous is not in the T & C's that you have signed.

 

" “12.2 Where the customer had defaulted on his obligations under the Credit Agreement the dealer shall use its best endeavours to collect monies from the customer to MotoNovo under a Credit Agreement”.

So, in the credit agreement between MotoNovo Finance and its customer, the dealer seemingly becomes a default debt collector should Moto Novo’s customer not meet its obligations to pay monthly under the credit agreement? "

 

Just been posted by a friendly law firm!

This kind of thing is all well and good on paper but the reality is if you get on with your rep, decline business when you think it's gonna bring hassle and be honest with the customer from day one about their responsibilities and risks.

Personally I decline a lot of finance customers because they're not the kind of people I want to deal with but the ones we do are generally very very sensible.

Finance is great to offer but you can't let it take over your business. Our penetration is awful but only because we're picky and IMO that's the right way to be.

[D7neo 5]

I am too in the process of getting my first plot. Can I just ask, in terms of referral/commission, how much would close brothers finance pay? Is it a set percentage or set amount for each sale?

thanks in advance 

[trade vet 703]

You will be an unknown quantity to them,so you won’t get much.However,if you do quality business with a reasonably low rejection rate,you can renegotiate at a later stage based on set targets.If you become really good,the prime lenders will queue up to offer you better deals.Although the ‘golden chucky commission ‘days are gone,to give you an idea,I recall we were able to finance say £3750 ( no deposit) and with the dreaded PPI we would receive £400 advanced commission plus 3% in volume bonus later on.Now you finance £10k and you don’t get anywhere near that.....also you have to read the rates and terms contract with a magnifying glass before signing.

[First Response 2]

If you're looking for a non-prime lender with a focus on customer service (to you and your customers) then consider us. We've been rated the best sub-prime lender by dealers at the Car Dealer Power Awards for every year the award's been available. Our customers also rate us 4.9/5.

We have an easy online portal which can give instant decisions and allow you to upload docs without even speaking to us. This portal is constantly being updated so bigger things are yet to come.

We also provide commission on all introduced business if the customer chooses a car from you. We are a lender and not a broker which means you'll deal directly with one of our staff members and you'll have your own Account Manager who's there to help your business grow.

If you want more details then feel free to drop us an email.

The Marketing Team.

[Tadams 29]

 

1 hour ago, First Response said:

If you're looking for a non-prime lender with a focus on customer service (to you and your customers) then consider us. We've been rated the best sub-prime lender by dealers at the Car Dealer Power Awards for every year the award's been available. Our customers also rate us 4.9/5.

We have an easy online portal which can give instant decisions and allow you to upload docs without even speaking to us. This portal is constantly being updated so bigger things are yet to come.

We also provide commission on all introduced business if the customer chooses a car from you. We are a lender and not a broker which means you'll deal directly with one of our staff members and you'll have your own Account Manager who's there to help your business grow.

If you want more details then feel free to drop us an email.

The Marketing Team.

Does that mean if the customer goes elsewhere i lose the customer and any comms ? 

[Dan W 57]

5 hours ago, First Response said:

If you're looking for a non-prime lender with a focus on customer service (to you and your customers) then consider us. We've been rated the best sub-prime lender by dealers at the Car Dealer Power Awards for every year the award's been available. Our customers also rate us 4.9/5.

We have an easy online portal which can give instant decisions and allow you to upload docs without even speaking to us. This portal is constantly being updated so bigger things are yet to come.

We also provide commission on all introduced business if the customer chooses a car from you. We are a lender and not a broker which means you'll deal directly with one of our staff members and you'll have your own Account Manager who's there to help your business grow.

If you want more details then feel free to drop us an email.

The Marketing Team.

Must admit we have just had a customer use you guys to arrange his finance and collect his car after being declined with ourselves. Very easy portal to use and payout within 15 mins so highly recommend these guys even if we didn't get the commission

[D7neo 5]

7 hours ago, First Response said:

If you're looking for a non-prime lender with a focus on customer service (to you and your customers) then consider us. We've been rated the best sub-prime lender by dealers at the Car Dealer Power Awards for every year the award's been available. Our customers also rate us 4.9/5.

We have an easy online portal which can give instant decisions and allow you to upload docs without even speaking to us. This portal is constantly being updated so bigger things are yet to come.

We also provide commission on all introduced business if the customer chooses a car from you. We are a lender and not a broker which means you'll deal directly with one of our staff members and you'll have your own Account Manager who's there to help your business grow.

If you want more details then feel free to drop us an email.

The Marketing Team.

Do you deal with finance for home traders? Vat registered limited company with all insurances

[grant8064 219]

7 hours ago, First Response said:

If you're looking for a non-prime lender with a focus on customer service (to you and your customers) then consider us. We've been rated the best sub-prime lender by dealers at the Car Dealer Power Awards for every year the award's been available. Our customers also rate us 4.9/5.

We have an easy online portal which can give instant decisions and allow you to upload docs without even speaking to us. This portal is constantly being updated so bigger things are yet to come.

We also provide commission on all introduced business if the customer chooses a car from you. We are a lender and not a broker which means you'll deal directly with one of our staff members and you'll have your own Account Manager who's there to help your business grow.

If you want more details then feel free to drop us an email.

The Marketing Team.

We also used you guys for a sub prime for the first time recently and have two more in the pipeline.

Really uncomplicated portal, easy docs and most importantly very quick payout. Staff seem a lot more switched on than that other big subprime lender too.

[First Response 2]

On 1/8/2018 at 7:39 PM, D7neo said:

Do you deal with finance for home traders? Vat registered limited company with all insurances

On 1/8/2018 at 1:56 PM, Tadams said:

Yes we're able to work with home traders. Drop us a message or email marketing@frfl.co.uk and we'll see what we can do for you.

 

On 1/8/2018 at 1:56 PM, Tadams said:

Yes unfortunately it does. To get commission on a deal you have to introduce and provide the vehicle to the customer.
 

Does that mean if the customer goes elsewhere i lose the customer and any comms ? 

 

Edited January 10, 2018 by First Response

[Tadams 29]

@First Response How does the work or is fare in any way ? 

If i introduce my customer and they buy elsewhere i lose the customer and the comms BUT you haven't lost anything ... you still make your money on the finance interest which you wouldn't have done without me. 

A lass another greedy business that doesn't know the value of a dealer !

[First Response 2]

1 hour ago, Tadams said:

@First Response How does the work or is fare in any way ? 

If i introduce my customer and they buy elsewhere i lose the customer and the comms BUT you haven't lost anything ... you still make your money on the finance interest which you wouldn't have done without me. 

A lass another greedy business that doesn't know the value of a dealer !

We appreciate our dealers a lot and customer service is the forefront of everything we do. If a customer is introduced to us we will do everything within our power to keep that customer at the original dealer, after all we see them as your customer, not ours.

We understand our commission structure will not be to everybody's liking and we'll make sure the feedback is passed to the correct department so they're aware of your challenges.

[Tadams 29]

6 minutes ago, First Response said:

We appreciate our dealers a lot and customer service is the forefront of everything we do. If a customer is introduced to us we will do everything within our power to keep that customer at the original dealer, after all we see them as your customer, not ours.

We understand our commission structure will not be to everybody's liking and we'll make sure the feedback is passed to the correct department so they're aware of your challenges.

I understand all the above but as a business there is more of a draw to put my customer in someone else's car as it makes you more money ? 

[First Response 2]

Just now, Tadams said:

I understand all the above but as a business there is more of a draw to put my customer in someone else's car as it makes you more money ? 

Not at all, the business relationships we have with dealers come first, not profit.

Our company vision is "people service profit" and we truly believe that our people come first. We invest in the business relationships we have and our employees, this should naturally drive the best customer from both ends and profit will be a natural result of that. We don't chase profit as we believe it puts the service we provide and our relationships with our people at risk.

[Earunder 69]

Must admit, we've dealt with First Response for a number of years with our "not so good clientele" and can say they do try their best on your behalf and have never had any issues with them.  Completely recommended.

------

On a side note, most if not all finance brokers / sub-prime lenders will move a customer (Your original customer) to another dealer if you are unable to completely sell your car.

Edited January 10, 2018 by Earunder