Charging for finance application

[Jay@DNA 1]

In the last few weeks have had a few finance applications submitted and they have either been rejected or max advanced, the customers subsequently have not proceeded however the amount of our time wasted should at least be compensated. Just wanted to know if anyone charges for the finance application and maybe refunds the money if the deal goes through?

[EPV 631]

How would that work? Sorry mister you can’t have the car as you’ve failed the prop, that’ll be fifty quid please, ta. 

[Jay@DNA 1]

Was more thinking charging in advance, if it went through great they get the car and their £50 back. Obviously the problem will be if other dealers don’t charge

[trade vet 702]

Worth trying with all these chucky duffers about.Years ago I think the Great Trade Centre ( Car Giant) used to to charge a fee for doing proposals which was then refunded only if they were accepted and bought etc.( they might still do it)

[MSP Motors 39]

I mean.... It takes fucking 10 minutes to do a finance application. We get paid a premium for selling cars over a private seller. This is one of the reasons. I genuinely struggle with so many questions people post on here. What's next.... charging £50 for customers viewing cars?

Are you seriously a car dealer Jay?

[Row 71]

Ryanfinance 

[umesh 336]

All part of the job, if they fail that's life move on - Totally pointless charging then refund if they fail.

[Beautiful South Martin 24]

With out doubt the most ridiculous post I read this year!

I'm with you MSP motors defo non trade!

[Jay@DNA 1]

8 hours ago, MSP Motors said:

I mean.... It takes fucking 10 minutes to do a finance application. We get paid a premium for selling cars over a private seller. This is one of the reasons. I genuinely struggle with so many questions people post on here. What's next.... charging £50 for customers viewing cars?

Are you seriously a car dealer Jay?

Have you used evolution funding? Once the application is submitted they then seem to ask for 100 other things including the applicants grans birth certificate.

 

 

59 minutes ago, umesh said:

All part of the job, if they fail that's life move on - Totally pointless charging then refund if they fail.

That’s fair enough, I thought I would ask the question. 

[Rory RSC 596]

Wherever possible take a deposit subject to finance being obtainable and going ahead, if we can't refund deposit.

It is annoying I get loads of  finance apps and the percentage that complete and buy a car is far lower than total number of online applications received and I am led to believe I write a pretty good amount of finance business monthly. 

There are other brokers out there that do a bit more of the legwork and chasing up for you.

One of the ones that annoys me is when you do a deal with CF247 / Zuto and they ring up asking you to invoice and send v5 etc, you do all that and then the customer just decides not to go ahead. That is a real waste of time.

[justlooking 48]

19 minutes ago, Jay@DNA said:

Have you used evolution funding? Once the application is submitted they then seem to ask for 100 other things including the applicants grans birth certificate.

 

 

That’s fair enough, I thought I would ask the question. 

I’m with a few of the other guys. It’s all part of the service I’m afraid.

Instead of charging customers why not change Finance company and save time in doing the application ... motonovo has the option to send a application to customers inbox.. you do very little that way

 

[trade vet 702]

8 hours ago, MSP Motors said:

I mean.... It takes fucking 10 minutes to do a finance application. We get paid a premium for selling cars over a private seller. This is one of the reasons. I genuinely struggle with so many questions people post on here. What's next.... charging £50 for customers viewing cars?

Are you seriously a car dealer Jay?

Your finance acceptance rates are very important when negotiating rates and terms.I recall that Processing finance applications used to cost Black Horse £50 per time and that was 15 years ago.At the time we did a lot of prime finance but because of the lower cost to them of operating our account in reps time,cases going legal,proposal rejection rate and and other stuff ( they would supply us with the figures each year ) we could renegotiate our annual rates and terms contract.So you could understand why the likes of The Great Trade Centre would charge for finance applications when they were doing over £1m per week on finance.

[SC Derby 259]

We tried to take a deposit pending acceptance at one point

Just incase we went through all the paperwork, got them accepted and still they wanted a little think.

Now we just don't bother and take it all on the chin as part of the job.

[Nick M.K. 574]

10 hours ago, MSP Motors said:

What's next.... charging £50 for customers viewing cars?

I actually know a dealer in Bedfordshire that charges £50 "test drive deposit" so it seems your idea might just catch on :-)

[Mark101 536]

Just now, Nick M.K. said:

I actually know a dealer in Bedfordshire that charges £50 "test drive deposit" so it seems your idea might just catch on :-)

I might just do test drives - like a poor mans "supercar" experience type of thing.

Always wanted to drive a Vauxhall Meriva 1.4 5 speed? - well now you can for just £50 per loop of the town. 

[EPV 631]

10 minutes ago, tradex said:

We don't do finance but have colleges that do, and there seems to be a correlation between those wanting finance on low end stuff say up to 6k and well, lets call a spade a spade, lying b%*tards.

The amount of time these idiots waste, only to get to another rejection due to their obvious lies and dodgy past makes me glad we don't dabble in this area.

Maybe over this limit, things get better?

If we did do finance we would charge say, £35 for the admin' just to clear the air somewhat from genuine to chancers.

There are enough timewasters in this business without the truely potless brigade dabbling here.

I had a bloke wanting finance on a 14 year old X5, up for £5,500, he had a £200 deposit. Let's just say I talked him out of it.

[Nick M.K. 574]

14 minutes ago, tradex said:

If we did do finance we would charge say, £35 for the admin' just to clear the air somewhat from genuine to chancers.

If you did do finance you wouldn't charge a penny for the admin. 

For the simple reason that your finance company would pay you a HEFTY commission for your time and even if the comm is only say £350 per deal it would compensate your time at a grand an hour assuming acceptance rate of 50% and around 10 minutes to submit an application.*

*Our lender is Close, they require no additional paperwork other than a Driving License and it takes me 5-6 minutes to submit an application. My acceptance rate is 47%, take up rate is 93% (so virtually everyone who was accepted bought).

Edited August 3, 2018 by Nick M.K.

[Del Boy 76]

6 minutes ago, Nick M.K. said:

. My acceptance rate is 47%, take up rate is 93% (so virtually everyone who was accepted bought).

Less than half accepted? Wow

[Nick M.K. 574]

1 minute ago, Del Boy said:

Less than half accepted? Wow

With our prime lender, yes, and this is a good number compared to others. Also bear in mind this number is dependent on stock profile. Young buyers with good credit history will not be approved for an expensive car which the lender deems to be "unaffordable" for them to run long term. If we had a large yard full of Fiestas acceptance would be higher. 

Most of the "declines" will then go to subprime lenders but the commission from them is so small that we might as well forget it in this topic about being paid for our time. 

[Jay@DNA 1]

2 hours ago, Beautiful South Martin said:

With out doubt the most ridiculous post I read this year!

I'm with you MSP motors defo non trade!

Thanks for your constructive criticism, very professional.

45 minutes ago, SC Derby said:

We tried to take a deposit pending acceptance at one point

Just incase we went through all the paperwork, got them accepted and still they wanted a little think.

Now we just don't bother and take it all on the chin as part of the job.

Taking it on the chin seems to be unfortunately what we will have to do.  However it can be very frustrating. 

[Jay@DNA 1]

24 minutes ago, Nick M.K. said:

If you did do finance you wouldn't charge a penny for the admin. 

For the simple reason that your finance company would pay you a HEFTY commission for your time and even if the comm is only say £350 per deal it would compensate your time at a grand an hour assuming acceptance rate of 50% and around 10 minutes to submit an application.*

*Our lender is Close, they require no additional paperwork other than a Driving License and it takes me 5-6 minutes to submit an application. My acceptance rate is 47%, take up rate is 93% (so virtually everyone who was accepted bought).

We use motonovo for our prime and they are great, however anything else just makes sense to give to a broker like evolution to do the legwork.

[NOACROSS 414]

 

4 minutes ago, Jay@DNA said:

Thanks for your constructive criticism, very professional.

More like well deserved tough-love I'd say (observing this post from the wings). 

Finance props take zero effort.  Give me as many as possible and I'm happy if even just one goes through.

The props either come through direct from the customer filling out the standard application on our website, or it comes direct from ivendi and gets auto-submitted to the lenders.

The ones from the website I simply copy and paste into an email and ping it off to a lender.  They then do the leg-work.  Simples!

I've even-when busy- asked the finance company to call the customer and get a prop on occasion.

Under half accepted?  I 'usually' manage to get some sort of offer in most cases.

[Nick M.K. 574]

8 minutes ago, tradex said:

I don't know your business Nick, but under half are accepted, would that be a good rate of acceptance?

100% would certainly be better but as I wrote above acceptance is also depending on stock profile. Prime lenders have to look at "affordability" now, not just credit history and score. 

We had a £17K BMW 420D in stock for 5 months. 4 people wanted to buy, all four were declined, three of them because of affordability. In a deal like this I'll take 50% acceptance any day :-) 

[Nick M.K. 574]

5 minutes ago, twerp said:

Why so long ? SE trim ?

No. M Sport Coupe in Space Grey, Red leather, 16K miles, Great Price. 

1) because it was a manual

2) because 4 people wanted to buy it and all 4 were declined for the finance :-)

 

[MSP Motors 39]

2 hours ago, EPV said:

I had a bloke wanting finance on a 14 year old X5, up for £5,500, he had a £200 deposit. Let's just say I talked him out of it.

I just done a deal yesterday on 13 year old X5. Finance done, drove away within the hour.