What finance rate do you sell out at?

[BCC 9]

Curious to see what other people are selling out at and what sort of cars they stock...

We sell out at 10.9% and rarely move from that

[Okay dokay 3]

10.9% flat? Or APR?

Im guessing APR. 

 

We historically have sold out at 6% flat but recently have increased this to 6.5%

[Dealer 54]

I push for 7% flat where possible, sometimes adjust the rate myself if punter is savvy or can only work to a certain amount a month etc. I look at commission as a bonus, I'd be happy to sell the car at full price anyway but when it goes on finance then it's that added extra. 

[whitestone679231 113]

normally 6 flat, but has anyone noticed prime finance has dropped off a cliff lately? the days of £000,s a month chucky commision seem a distant past, not sure if its down to likes of zuto etc advertising with banners under our ads or what but punters seem to be sorted when they arrive now.

[trade vet 702]

The rate depends on what you sell.If you do bread and butter stuff you can earn more.If you have a £5k Astra Estate and ‘Mr Canny Bloke ‘wants to finance £4500,he is not going to chip you on the rate because the payments are £25 per week.If you look at the finance income for e.g. Trade Centre Wales you will see what I mean.In my experience,if you do heavy tackle over £10k,you won’t earn a lot  from finance.No point in doing finance for base rates or a handling fee,the punters who want to chip you are often the ones who give you a hard time.

[NOACROSS 414]

In recently reduced it to 5.5. Just to try and get some finance business going as has been a ghost town in that department over the last six months.

Already noticing an uplift in finance props. It’s weird. 

[c_cars 56]

Our website is set at 5.9 flat which gives a decent rate of commission on the stuff we sell and room for negotiation if the customer is switched on; very rarely do we have to reduce it from that though.

[Tadams 29]

We have a broker that does all our finance... they decide the rate to sell to the customer.

My comms payments doesn't change as we have a signed agreement that shows what we earn on what lend amount with what lender. 

If the broker drops the rate they earn less money, not us. We have done Hitachi deals at 6.9% in the past at still earn good money. 

[Dealer 54]

3 hours ago, whitestone679231 said:

normally 6 flat, but has anyone noticed prime finance has dropped off a cliff lately? the days of £000,s a month chucky commision seem a distant past, not sure if its down to likes of zuto etc advertising with banners under our ads or what but punters seem to be sorted when they arrive now.

Yep me, zuto with their tie in with autoraper is definitely taking deals from us. 

[Beautiful South Martin 24]

I use Close Bros and its fixed at 5.5% flat and they pay a half decent commission on that, you can't go any higher as they want to be seen as a responsible lender and any lower and your commission reduces. I push the 5.5% quite heavily in my advertising with a £95 deposit and it seems to create traffic. The £340 doc fee + £10 at the end is a bit of a ball ache if your punter starts delving into how much they are paying back but its spread so takes the sting out of it a bit.