FCA Registered

[EPV 631]

I am sure this must have been done to death and I've tried to do a search on the forum but understandably the term "FCA" doesn't work with the search function, so....

I don't know where to start but I'm sure it can't be too hard, I've just left a message for a chap from Moto Novo (South Coast rep in case any of you know him) explaining that I'll push my finance props his way in exchange for some guidance in helping me through it all. 

I'm a doorstepper, not yet VAT registered (creatively managed to avoid it for longer than I first thought) but that will change within a few months, will any of that impact me getting approved? (door stepper no VAT number)

 

Cheers 

[Nick M.K. 574]

If the MotoNovo rep even returns your call it will be a pleasant surprise. 

Get in touch with Close Brothers, their reps are very helpful when setting up. I would put you in touch with my rep but you are not in his area. 

[EPV 631]

Just now, Nick M.K. said:

If the MotoNovo rep even returns your call it will be a pleasant surprise. 

Get in touch with Close Brothers, their reps are very helpful when setting up. I would put you in touch with my rep but you are not in his area. 

Cheers Nick.

I rang Netgear twice and twice they said that Sarah woman would ring me to discuss funding, twice she hasn't, they must hate money....

[David Ayers 171]

+1 for Close

Blue Motor Finance are great too

[EPV 631]

Just spoke to someone at Close, I'll be getting a call from the local account manager..

[Linctrader 16]

Update us with how you get on, I'm approaching this point now myself and really debating if I want to get involved with finance at all. 

Thanks 

[Nick M.K. 574]

6 minutes ago, Linctrader said:

and really debating if I want to get involved with finance at all

You do!

Not only because of the commissions they pay but also because offering finance makes some sales extremely easy, especially on dearer cars.

[Linctrader 16]

Sounds good lol... I tend to sell oddball stuff, sometimes a bit older and up the miles, hence my reluctance to get involved. 

[Nick M.K. 574]

Up to 10-12 years old, up to 130K-140K miles OK with a lot of lenders. 

[Linctrader 16]

16 minutes ago, Nick M.K. said:

Up to 10-12 years old, up to 130K-140K miles OK with a lot of lenders. 

Cheers Nick, I think I'll give it a whirl as I do get stuff that fits those limits. 

[Arfur Dealy 823]

19 minutes ago, Nick M.K. said:

Up to 10-12 years old, up to 130K-140K miles OK with a lot of lenders. 

Nik, can you give an indication of the commission scales from Close ? 

[Linctrader 16]

13 minutes ago, Arfur Dealy said:

Nik, can you give an indication of the commission scales from Close ? 

+1 please. 

[Nick M.K. 574]

Can I do better?

Can I quote my Close rep when he admitted to me that he went to see a large dealer in Bedfordshire who showed him a commission statement from Santander who were paying 12% commission for the prime customers. That dealership does not need a margin on their cars. Just volume. 

Mine is just over half that. Still OK but not without a margin. 

[grant8064 219]

At risk of stating the obvious don't just go for a house that offers the highest comms, you need someone that you can have a relationship with (I know, i'm sounding like a finance rep now). We were with Santander originally and other than throwing a million pens at us we never saw our rep after we signed with them. Using Moto now and our rep really does work hard to help us out, deal with problems and pull a few strings when something needs a helping hand. It makes a big difference. 

 

[MSP Motors 39]

I just sold a mercedes Today with blue. £10,000 advance paid me £950 commission. They pay commission at the same time as the advance so no waiting about. Absolute piss easy to use their backend and is light years ahead of close in my opinion. The only Downside is that they only go to 10 years at the end of the term, so anything else prime goes to close. But I can't fault blue at all.

[Nick M.K. 574]

33 minutes ago, twerp said:

Hold on. 12% of the sale price ?

No. The deal advance. So sale price less cash deposit (if they have some to put down). 

This is a great answer to the "Your last price for cash" brigade. Cash is costing us ££££ in lost finance commission so I don't have any price movement if you are a cash buyer. 

Edited July 4, 2018 by Nick M.K.

[NOACROSS 414]

Yeah Blu are brilliant. And if you get paid out two deals over £4k with them between now and end of August - you receive a free Ipad. Then every four deals after that you’ll receive another. I already have two so dunno what I’ll do with another. 

Motonovo are good too but I think I’m right in saying Blu don’t clawback. 

[MSP Motors 39]

1 minute ago, NOACROSS said:

Yeah Blu are brilliant. And if you get paid out two deals over £4k with them between now and end of August - you receive a free Ipad. Then every four deals after that you’ll receive another. I already have two so dunno what I’ll do with another. 

Motonovo are good too but I think I’m right in saying Blu don’t clawback. 

 

Thats correct, which is also fucking brilliant. Nothing more demoralising than a clawback...... Well I'm sure there are, but it doesn't feel like that when you see that clawback come out of a commission cheque!

[Linctrader 16]

I'm missing out... Ffs. I didn't think it could that good for us indys. 

And a spare ipad every so often wouldnt go a miss! 

Are blue difficult to get on board with? 

Prime only or subprime? 

I guess I could go with close for sub prime and try for blue for prime. 

 

[Nick M.K. 574]

10 minutes ago, Linctrader said:

I guess I could go with close for sub prime and try for blue for prime

They are both prime lenders but Blue has different tiers. First Response was recommended very highly for subprime on a thread here recently. 

[MSP Motors 39]

Close are prime. Blue do a soft search on the customers, so you can see what tier a customer is when you submit the customer details. 1-10 is there scale. 1-3 is prime and then it goes down accordingly. I have had a tier 9 paid out from blue. Very good company.

I have sold 3 cars this month, all finance. 1 blue, 2 first response. I don't always get finance deals, some months it's very lean, but finance is a must. The FCA setup is fairly straightforward. It's crazy not to offer finance, I can see no benefit of not offering that facility.

[Nick M.K. 574]

6 minutes ago, MSP Motors said:

I don't always get finance deals, some months it's very lean, but finance is a must. The FCA setup is fairly straightforward. It's crazy not to offer finance, I can see no benefit of not offering that facility.

I could've written that myself, word for word. For the first few years of my trading I didn't offer finance because at the time the "consumer credit licence" was £1500 or so and I had no idea about the commissions. The cost now: £100 :-)

[EPV 631]

Just now, Nick M.K. said:

I could've written that myself, word for word. For the first few years of my trading I didn't offer finance because at the time the "consumer credit licence" was £1500 or so and I had no idea about the commissions. The cost now: £100 :-)

What’s the difference between FCA registered and consumer credit licence Nick?

[MSP Motors 39]

Yea that was brutal. I signed up for a ccl just before they changed to FCA. Luckily I got a rebate. I'm fairly confident you will have to be VAT registered though to setup with finance companies, possibly even the FCA.

Edited July 4, 2018 by MSP Motors
A

[Nick M.K. 574]

CCL was the old name for the FCA registration, then they changed the rules. There is no CCL anymore. Your cost for getting set up will be £100 or £500 if you will exceed certain finance income threshold (which you won't at the beginning)