Charging for finance application

[BHM 994]

That’s one car I wouldn’t want to stand on - an old X5 near the end of its life. It’s just waiting to come back, tbh it surprises me these companies finance such vehicles.

[MSP Motors 39]

17 minutes ago, BHM said:

That’s one car I wouldn’t want to stand on - an old X5 near the end of its life. It’s just waiting to come back, tbh it surprises me these companies finance such vehicles.

Not that surprising when you see the repayments. Good old first response.

[trade vet 702]

2 hours ago, Del Boy said:

Less than half accepted? Wow

47% acceptance rate.....that is dreadfull,but I suppose that reflects todays level of average household consumer debt.I recall back in 04 ish when Black Horse were trying to chip us on rates and terms because our acceptance rate had dropped to something like 92% !

[trade vet 702]

35 minutes ago, MSP Motors said:

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

Who financed that,it must have been 50% deposit over 12 months......I would be interested to know what the deal was.

[MattR 177]

3 hours ago, Jay@DNA said:

Thanks for your constructive criticism, very professional.

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

Jay, youre an newbie asking for advice. I think you are correct, you do need to take it on the chin, and a bit of your time will be wasted. But if you want to get more advice, dont mock the professionalism of the traders on here.

[MSP Motors 39]

41 minutes ago, trade vet said:

Who financed that,it must have been 50% deposit over 12 months......I would be interested to know what the deal was.

10% Deposit over 3 years

[trade vet 702]

29 minutes ago, MSP Motors said:

10% Deposit over 3 years

Thank you MSP,I have to say that is rediculous and could bounce back for whatever reason.That cannot be a mainstream lender,so much for Mark Carney warning about reckless lending.

[David Ayers 171]

My finance rep was telling me their acceptance rate and it is about the same as Nicks

[MSP Motors 39]

10 minutes ago, trade vet said:

Thank you MSP,I have to say that is rediculous and could bounce back for whatever reason.That cannot be a mainstream lender,so much for Mark Carney warning about reckless lending.

First Response. Fairly Mainstream, albeit subprime. It could bounce back for any reason, you are correct, however, that really doesn't have to do with the car being sold on Finance.

[trade vet 702]

23 minutes ago, MSP Motors said:

First Response. Fairly Mainstream, albeit subprime. It could bounce back for any reason, you are correct, however, that really doesn't have to do with the car being sold on Finance.

Subprime,I thought so.If there is a merchandise complaint to the lender in the first 6 months and they stop paying......they could claim a void deal and rescind the contract.....it’s happened to me,full refund,that is why I quickly stopped offering sub prime years ago when it was introduced.

[MSP Motors 39]

20 minutes ago, trade vet said:

Subprime,I thought so.If there is a merchandise complaint to the lender in the first 6 months and they stop paying......they could claim a void deal and rescind the contract.....it’s happened to me,full refund,that is why I quickly stopped offering sub prime years ago when it was introduced.

Thanks for the heads up, however I'll continue to use them. In my experience they are a really good company that just so happen to specialise in sub prime.each to their own.

20 minutes ago, trade vet said:

Subprime,I thought so.If there is a merchandise complaint to the lender in the first 6 months and they stop paying......they could claim a void deal and rescind the contract.....it’s happened to me,full refund,that is why I quickly stopped offering sub prime years ago when it was introduced

[NOACROSS 414]

 

25 minutes ago, trade vet said:

Subprime,I thought so.If there is a merchandise complaint to the lender in the first 6 months and they stop paying......they could claim a void deal and rescind the contract.....it’s happened to me,full refund,that is why I quickly stopped offering sub prime years ago when it was introduced.

Mr.Doom today T.V.!   Must be time for a G&T? ;0)

I've dealt with First Response for many years...... I used to know Ian Harley there very well..lovely guy- back in the days of personal service from finance companies!  Anyway, I've never had any issues with sub prime deals- except one BMW customer who tried to get clever over his CRA rights recently but was put straight.

I've never had any issues in thirty years with any finance company to be fair.  The odd claw-back, but then you just move on to a better lender like Blue.

[EPV 631]

3 hours ago, MSP Motors said:

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

Best of luck, as BHM says it’s a potential boomerang as I have started to learn...

[c_cars 56]

Some interesting approaches to sub prime here, each to their own and all depending on your business model and indeed, the individual customer I guess.

Personally, if a sub prime deal helps to get another profitable unit out the door then why not? 

 

[trade vet 702]

13 minutes ago, NOACROSS said:

 

Mr.Doom today T.V.!   Must be time for a G&T? ;0)

I've dealt with First Response for many years...... I used to know Ian Harley there very well..lovely guy- back in the days of personal service from finance companies!  Anyway, I've never had any issues with sub prime deals- except one BMW customer who tried to get clever over his CRA rights recently but was put straight.

I've never had any issues in thirty years with any finance company to be fair.  The odd claw-back, but then you just move on to a better lender like Blue.

You are right Noacross,I am anti sub prime.They don’t become repeat punters and they usually have non retailable swappers.The first and final straw for me was an outfit called Welcome Finance who wanted our business which was long ago.Their rep met the punter at the handover and took ages signing up with all the refs and ID.The punter then drives off and the rep gave us a cheque for balance .....all very good.Next morning the car is parked at the door with the keys and docs in the letterbox and a note saying ‘ I don’t want it etc’.So I phone Welcome and tell them to forget it and that I will refund them immediately.They said it’s OK,we will just stop the cheque ! ( as if it was normal).After that any chucky duffers had to promptly arrange their own finance if they wanted to buy from us.

I am sure First Response are OK,but I was always interested in prime finance,good rates and terms,good retailable swappers and repeat business.....maybe I was wrong.

[MSP Motors 39]

4 minutes ago, trade vet said:

You are right Noacross,I am anti sub prime.They don’t become repeat punters and they usually have non retailable swappers.The first and final straw for me was an outfit called Welcome Finance who wanted our business which was long ago.Their rep met the punter at the handover and took ages signing up with all the refs and ID.The punter then drives off and the rep gave us a cheque for balance .....all very good.Next morning the car is parked at the door with the keys and docs in the letterbox and a note saying ‘ I don’t want it etc’.So I phone Welcome and tell them to forget it and that I will refund them immediately.They said it’s OK,we will just stop the cheque ! ( as if it was normal).After that any chucky duffers had to promptly arrange their own finance if they wanted to buy from us.

I am sure First Response are OK,but I was always interested in prime finance,good rates and terms,good retailable swappers and repeat business.....maybe I was wrong.

you can't get prime finance on a 13 year old car. If I take a 13 year old car in px and someone wants to get strapped up to it, who am I to deny them. EPV, every car is a potential boomerang, its all part of the job. You need to win more than you lose.  I have no more fear selling a 13 year old, diesel X5 than I do selling a 5 year disco. Actually, scrap that, I'm more fearful selling the 5 year old Land Rover/.

[NOACROSS 414]

Sorry T.V. you’re def mistaken this time, and for once it’s not like the old days and it has changed  (you know I’m always on your side primarily as you are a seasoned Pro and your words are wise.). 

I’m not sure the repeat business is much of a thing anymore. The internet killed the game. Despite our good reviews, we only get the odd few coming back, but it’s about four /five years later by the time the car we sold them needs upgrading- and even then we don’t always have exactly what they are looking for. (Or in our case they’ve often given up driving or died).

We do get recommendations to customers friends and family who come to buy obviously, and this is all customers, not just prime finance. 

People are people and I’m happy to entertain most credit histories, they’re no more bother than the prime I can assure you. Honest Guv, and the payouts are quick and efficient.

I’ve had some reasonable swappers too, as sub-prime doesn’t mean cheap lower end of the market’ cars that they’re buying (as that’s not my stock profile anyway) and apart from their credit score, you mostly can’t tell them apart from your usual ‘cash’ buyer who then breaks their debit card out  

All punters are potentially trouble but that’s the minority. Most are normal. 

Enjoy that G&T mate!

Edited August 3, 2018 by NOACROSS

[trade vet 702]

6 minutes ago, NOACROSS said:

Sorry T.V. you’re def mistaken this time, and for once it’s not like the old days and it has changed  (you know I’m always on your side primarily as you are a seasoned Pro and your words are wise.). 

I’m not sure the repeat business is much of a thing anymore. The internet killed the game. Despite our good reviews, we only get the odd few coming back, but it’s about four /five years later by the time the car we sold them needs upgrading- and even then we don’t always have exactly what they are looking for. (Or in our case they’ve often given up driving or died).

We do get recommendations to customers friends and family how come to buy obviously, and this is all customers, not just prime finance. 

People are people and I’m happy to entertain most credit histories, they’re no more bother than the prime I can assure you. Honest Guv, and the payouts are quick and efficient.

I’ve had some reasonable swappers too, as sub-prime doesn’t mean cheap lower end of the market’ cars that they’re buying (as that’s not my stock profile anyway) and apart from their credit score, you mostly can’t tell them apart from your usual ‘cash’ buyer who then breaks their debit card out  

All punters are potentially trouble but that’s the minority. Most are normal. 

Enjoy that G&T mate!

Point taken Noacross ( although I am a seasoned or hard boiled pro,I am not sure about being wise) however although the company I founded goes on without me,they still do plenty of repeat business.When I call in I often meet the regulars.Maybe its a northern thing,mind we have been going for many years.....I am not a G&T guy ( wife is) I drink like a budgie......I am presently watching the cricket and following you guys.....thank you.

[BHM 994]

Welcome Finance must of dealt with some right scum. I remember the Washington Friday sales seeing their ‘offerings’ - Christ! Most of it was pure spew 

The one thing I will say though is that Welcome were obviously only interested in ‘clearing their books’ & not hanging out for profit. Some of their finer offerings (all things being relative) were for absolutely nowt and as long as you were prepared to upset your valeter and cough-up for oil, filter, discs, pads & tyres (always f***ed) then there was profit to be had. 

I understand why you pitch lads have to do finance to keep up the numbers but I couldn’t be arsed with it. Just give me a few cash customers any day of the week - so much easier, car gone, bye bye, never to be seen again.

[MSP Motors 39]

1 hour ago, BHM said:

Welcome Finance must of dealt with some right scum. I remember the Washington Friday sales seeing their ‘offerings’ - Christ! Most of it was pure spew 

The one thing I will say though is that Welcome were obviously only interested in ‘clearing their books’ & not hanging out for profit. Some of their finer offerings (all things being relative) were for absolutely nowt and as long as you were prepared to upset your valeter and cough-up for oil, filter, discs, pads & tyres (always f***ed) then there was profit to be had. 

I understand why you pitch lads have to do finance to keep up the numbers but I couldn’t be arsed with it. Just give me a few cash customers any day of the week - so much easier, car gone, bye bye, never to be seen again.

Each to their own, I just don't why anyone would not offer it. I have sold 3 cars this month, 1 bank transfer, 2 Finance deals. The first finance sale gave me £75 commission, but more importantly, enabled me to sell the car. Yesterday I got close to £2000 commission and enabled me to sell the car. like I said, each to their own however having the ability to offer finance is one of the most fundemental tools to have to help me sell cars.

[EPV 631]

£2000 commission? Selling Bugatti’s? 

[MSP Motors 39]

1 hour ago, EPV said:

£2000 commission? Selling Bugatti’s? 

Not Quite, 11 year old bentley with 30k advance.

[Tom 164]

I got £1,200 commission on 16k advance couple of weeks ago, it all helps. 

[MSP Motors 39]

It certainly does, especially as there is no margin on that!! Winner winner

[Mark101 536]

I am not FCA registered yet and debating.

I know this is a bit "how long is a piece of string" but would you recommend funding for my stock profile (between £3k to £7k but mainly £5k).  

Am I right to presume that will attract a lot of sub prime and very little comms? 

What would you anticipate commission for prime/subprime on £5k advance?

Only asking because I already accept CC and my cars are easily credit cardable...