New trader - best warranty and physical card payment provider?

[MrV 66]

Hi guys, I recently started trading at home under www.heyshamcarsales.co.uk and I want to be able to offer a better service which leads me to these questions;

1. I want to offer 3 month warranties, who's the best provider?

2. I want to offer card/credit card payments and take payments physically with a card machine, would izettle be a wise choice for a startup?

3. Offering finance; obviously I can't offer finance house options as I'm not VAT or FCA registered, so what choices do I have? For example could I simply advertise "get finance through our partner Zuto finance" and link to their website? (With their permission of course)

Thanks Ben

[Mikey360 68]

12 minutes ago, benjiv50 said:

Hi guys, I recently started trading at home under www.heyshamcarsales.co.uk and I want to be able to offer a better service which leads me to these questions;

1. I want to offer 3 month warranties, who's the best provider?

2. I want to offer card/credit card payments and take payments physically with a card machine, would izettle be a wise choice for a startup?

3. Offering finance; obviously I can't offer finance house options as I'm not VAT or FCA registered, so what choices do I have? For example could I simply advertise "get finance through our partner Zuto finance" and link to their website? (With their permission of course)

Thanks Ben

Hi Ben,

I use Lawgistics for my warranties, basically means It's all in my hands and if there are no claims in the 3 month period I get to keep what was put aside for the warranty in the first place. Give Ella a call and she'll be able to explain your options. Big companies like warranty wise and autoguard make their profits from not paying out and can tarnish your reputation. I'd rather have a good reputation and fork out now and again!

I'm not using a card machine and hasn't given me many problems, just let them know over the phone that its BACS or Cash. Alot of new card machine companies like izettle do have a monthly limit on them of around £5K, plus a 1.6% fee of each transaction can be a big chunk out of your profits. 

I don't think you can offer finance if you're operating from home, I seem to remember reading you need dedicated premises? 

 

[MrV 66]

Thanks mikey360, my stock for now is around 2-3k so I think the card transaction fee would be around 40-50 which I  can take if it helps to sell the car so I may check it out, regarding finance...as I was listing on gumtree I saw a finance calculator at the bottom from a place called Zuto who I believe finance any car (must be like a personal loan) so I'm thinking I could advertise "finance available through xxxx, get a quote today" etc

[andymc1973 199]

you need to be FCA complaint

[MrV 66]

6 minutes ago, andymc1973 said:

you need to be FCA complaint

Even to "suggest" car finance providers like car finance 247/Zuto etc?

[EPV 631]

3 minutes ago, benjiv50 said:

Even to "suggest" car finance providers like car finance 247/Zuto etc?

No, to do that you need to be an IAR, an introductory authorised representitive 

[MattR 177]

Hi Benji

I use VGS/WMS  warranties - fairly inexpensive (55 plus VAT) for 3 month coverage. Build a good relationship with them, and they will payout (even if the claims desk has originally refused ) if you get involved, but the warranty cost may be higher for you as a new starter.

Card machines - Getting more expensive by the day! If you can operate using bank transfers and cash you will save yourself a good amount of money. Not many customers will worry about a bank transfer, it costs you nothing and is better on cashflow, with most card providers your money is 'up in the ether' for up to 3 days. I do have a card machine still, but tend to use it for deposits rather than balances since card fees increased this year.

[MrV 66]

Thanks chaps, as I'm new to the game I want to ensure i don't give a prospective customer a reason to walkaway especially if all they wanted to do was pay by CC 

[justina3 518]

If you have set up a business bank account talk to your bank they often have merchant deals on machines and costs, i know Barclays did when i set up with them. I have changed banks recently but still use barclays for there merchant services.

[Mark101 536]

2 hours ago, Mikey360 said:

 Alot of new card machine companies like izettle do have a monthly limit on them of around £5K, plus a 1.6% fee of each transaction can be a big chunk out of your profits. 

£5k limit per transaction, £50k daily accumulative limit.  Just signed up for IZettle as recommended by my bank, Santander.

Bank transfer still my preferred payment method 

[MrV 66]

2 minutes ago, Mark101 said:

£5k limit per transaction, £50k daily accumulative limit.  Just signed up for IZettle as recommended by my bank, Santander.

Bank transfer still my preferred payment method 

Do you know how long it takes to release the funds Mark101?

[SC Derby 259]

Take a few decent CC payments a month and it can really add up in fees.

[Mark101 536]

3 minutes ago, benjiv50 said:

Do you know how long it takes to release the funds Mark101?

2 working days I think, so if you sell late on a Friday = 4 days

1.75% commission but no monthly charges.

[MrV 66]

11 minutes ago, Mark101 said:

2 working days I think, so if you sell late on a Friday = 4 days

1.75% commission but no monthly charges.

Thanks!!

[andymc1973 199]

You do not take credit card payments, simple as that 

[BHM 994]

19 hours ago, benjiv50 said:

1. I want to offer 3 month warranties, who's the best provider?

2. I want to offer card/credit card payments and take payments physically with a card machine, would izettle be a wise choice for a startup?

3. Offering finance; obviously I can't offer finance house options as I'm not VAT or FCA registered, so what choices do I have? For example could I simply advertise "get finance through our partner Zuto finance" and link to their website? (With their permission of course)

You want to offer a “better service” but I think you’re trying to emulate pitch practices as an Internet seller - many have tried it but here’s my take on how an internet business should operate in these harsh economic times.

1) Warranties. Don’t bother, you’re selling 10 year old cars from the door, those punters are price driven. You’re just asking for comebacks (warranties confuse banger customers into thinking everything is covered) and I soon learned that punters will take a warranty if it’s free but rarely value them enough to pay for them! 

2) See andymc1973’s answer. Believe me, you do not want, or need, to take CCs. Those punters who cannot raise the funds for an old car are punters who turn into screamers because they have no money for maintenance. Do not worry about servicing the penniless, the right cars at the right prices sell.

3) Financing old cars. No f***ing chance whatsoever - are you wanting comebacks? 

[tradegirl 112]

1 hour ago, BHM said:

You want to offer a “better service” but I think you’re trying to emulate pitch practices as an Internet seller - many have tried it but here’s my take on how an internet business should operate in these harsh economic times.

1) Warranties. Don’t bother, you’re selling 10 year old cars from the door, those punters are price driven. You’re just asking for comebacks (warranties confuse banger customers into thinking everything is covered) and I soon learned that punters will take a warranty if it’s free but rarely value them enough to pay for them! 

2) See andymc1973’s answer. Believe me, you do not want, or need, to take CCs. Those punters who cannot raise the funds for an old car are punters who turn into screamers because they have no money for maintenance. Do not worry about servicing the penniless, the right cars at the right prices sell.

3) Financing old cars. No f***ing chance whatsoever - are you wanting comebacks? 

BHM, so when a customer says "Is there any warranty?" you say no? I mean, no one month warranty or anything?

[trade vet 703]

1 hour ago, BHM said:

You want to offer a “better service” but I think you’re trying to emulate pitch practices as an Internet seller - many have tried it but here’s my take on how an internet business should operate in these harsh economic times.

1) Warranties. Don’t bother, you’re selling 10 year old cars from the door, those punters are price driven. You’re just asking for comebacks (warranties confuse banger customers into thinking everything is covered) and I soon learned that punters will take a warranty if it’s free but rarely value them enough to pay for them! 

2) See andymc1973’s answer. Believe me, you do not want, or need, to take CCs. Those punters who cannot raise the funds for an old car are punters who turn into screamers because they have no money for maintenance. Do not worry about servicing the penniless, the right cars at the right prices sell.

3) Financing old cars. No f***ing chance whatsoever - are you wanting comebacks? 

 Ben

Take note,you are getting valuable advice.A lot of us had to find stuff out with trial and error.

[Arfur Dealy 823]

1 hour ago, BHM said:

You want to offer a “better service” but I think you’re trying to emulate pitch practices as an Internet seller - many have tried it but here’s my take on how an internet business should operate in these harsh economic times.

1) Warranties. Don’t bother, you’re selling 10 year old cars from the door, those punters are price driven. You’re just asking for comebacks (warranties confuse banger customers into thinking everything is covered) and I soon learned that punters will take a warranty if it’s free but rarely value them enough to pay for them! 

2) See andymc1973’s answer. Believe me, you do not want, or need, to take CCs. Those punters who cannot raise the funds for an old car are punters who turn into screamers because they have no money for maintenance. Do not worry about servicing the penniless, the right cars at the right prices sell.

3) Financing old cars. No f***ing chance whatsoever - are you wanting comebacks? 

Absolutely excellent advice, completely spot on. 

[EPV 631]

14 minutes ago, tradegirl said:

BHM, so when a customer says "Is there any warranty?" you say no? I mean, no one month warranty or anything?

On a £3995 10 year old car? Why would you get a warranty? On a £9995 4 year old Focus, that’s a different story, people may expect it and you can use it as a selling point if you are competing with two other local cars that don’t offer one. 

But in that £3995 market, if everyone is offering the same car with a warranty and bells and whistles then what does it come down to? Price! People want a warranty but they don’t want to pay for it. They would rather have a £200 cheaper car with no warranty. 

The best thing you can do is prep a car to a very high standard, new mot and service, fix advisories, polish and hoover the nuts out of it, take plenty of good images, write a good description and price it correctly. Do that and things like warranties and card payments become a very very secondary issue that people will overlook because your car is a standout. 

[Arfur Dealy 823]

15 minutes ago, tradegirl said:

BHM, so when a customer says "Is there any warranty?" you say no? I mean, no one month warranty or anything?

I say, Mr Customer unless you are buying a new car with a manufacturer warranty then most warranties are worthless IMO. When buying a much older car the CRA2015 covers you against undisclosed faults which were apparent at purchase, however you need to take ownership and responsibility for the care, servicing and repairs of your car because faults / wear n tear which you would expect from a vehicle of its age and mileage are not covered. 

Something along those lines...

[BHM 994]

17 minutes ago, tradegirl said:

BHM, so when a customer says "Is there any warranty?" you say no? I mean, no one month warranty or anything?

Absolutely correct I say NO, if I said anything else I’d be misleading customers. Legally you should say “No, but your statutory rights are not affected”.

As for your second question I’m not sure you understand the meaning of the word ‘No’. No means no, it’s as simple as that.

By your questions I’ll hazard a guess & say you feel uncomfortable telling punters straight. Don’t be, it’s far better getting everything covered before you sell a car, rather than chewing on with a disgruntled customer afterwards.

Very rarely do punters ask about warranties, and the few a year who do ask seem to only ask out of interest. It’s not stopped me selling cars.

[tradegirl 112]

Thanks gents. There I was thinking that most traders offer a 3 month warranty (on vehicles of the 3-5k category) and we were shoddy/coming up short for not doing so.

[MrC 142]

I used to use warranty wise back in the day. Biggest bunch of crunts going. Promise the world but in reality they squirm out of it usually stating wear and tear. Then send the already irate customer back to you. 

I had more trouble when adding warranty on than i ever do now.

I don't offer warranty on my vans I stick strictly to the words of CRA 2015. I just explain that they are covered under consumer rights. 

I do offer 12 months on the camper conversion as they are new items newly installed.

I don't have a card machine. I will take cash/cheque/bacs. Not had a complaint yet. 

 

[EPV 631]

1 minute ago, tradegirl said:

Thanks gents. There I was thinking that most traders offer a 3 month warranty (on vehicles of the 3-5k category) and we were shoddy/coming up short for not doing so.

A third party warranty is an insurance policy. If the vehicle has a fault then under a certain set of circumstances (which have been discussed many times) as a trader you have to put it right. 

All the third party warranty is doing is insuring YOU against having to pay for the repairs. It should make no difference to the customer as they are entitled to said repairs whether you use a third party warranty or not. Whether the punter knows they have these entitlements is a different matter and if by offering a warranty you are reminding them they have these rights on a 10 year old banger then why would you?!