Finance for doorsteppers

[JDM1983 28]

Morning all, got my FCA approval through this morning and going to start the search for a provider. As a doorstepper with a small 3 car stock, I understand most Finance houses won’t be able to help me. I believe Zuto and Mallard possibly will. Are there any others you could recommend? Thanks, James

[MattR 177]

Close always get a mention.

[JDM1983 28]

6 minutes ago, MattR said:

Close always get a mention.

Close have been incredibly helpful in helping me through the FCA process, however they made clear at the start that they wouldn't work with me due to my low volumes (fair enough)

[David Horgan 564]

ZUTO and 24/7 wont pay you commission , you need to find a good broker that does pay you a commission cheque at month end .

Close and Moto Novo will deal with you when you get bigger , but a broker looks your best route 

Mallard , Euro Drive , Connected Car Finance , are a few brokers . but ring round them all . 

[NOACROSS 414]

 

13 minutes ago, David Horgan said:

ZUTO and 24/7 wont pay you commission , you need to find a good broker that does pay you a commission cheque at month end .

Close and Moto Novo will deal with you when you get bigger , but a broker looks your best route 

Mallard , Euro Drive , Connected Car Finance , are a few brokers . but ring round them all . 

Zuto give commission? Quite respectable too I think  -only done one deal with them so can’t remember how much it was  

Another vote for Mallard. Nice people. Same with Zebra (Autobahn now)

 

[JDM1983 28]

Thank you David and Noa, will give those companies a try!

[Tadams 29]

19 minutes ago, NOACROSS said:

 

Zuto give commission? Quite respectable too I think  -only done one deal with them so can’t remember how much it was  

Another vote for Mallard. Nice people. Same with Zebra (Autobahn now)

 

We have done quite a few with them now, comms is dependent on lend amount but quite decent and the ease of it all is a bonus, send customer, send invoice .. await commission. 

[MrV 66]

Zuto don't give commission you have to charge an additional "admin fee" or you won't get nout!!! 

[Tadams 29]

They do  we get paid a lump sum of comms every month for the previous months deals we have sent them. 

They don't give you anything if they have sent the customer to you though and sometimes charge us but the price they charge is the cheapest bit of advertising we do for a paid out deal so well pay it every time quite happily. £90 for a pre-approved customer ready to buy and all we have to do is show them around the car (if they even want to test drive) and send an invoice.  

Far easier than skimming the crap inquiries that come via AT, Ebay etc.. 


 

[NickGCS 14]

We use Evolution Funding as our broker & can’t recommend highly enough. Dealt with us a a doorstepper but that was a few years ago! Once you are big enough obviously you will get better comms going direct to a few lenders 

[JDM1983 28]

Thanks Nick, will add them to the call list

[JDM1983 28]

Anyone got a view about being VAT registered when it comes to finance? Some brokers are saying you must be, and if you go with another broker who doesn’t require it, you may end up getting black listed by the lender? 

[Mark101 536]

I am not sure how anyone can stay "unregistered" for VAT in this game.

[David Horgan 564]

27 minutes ago, JDM1983 said:

Anyone got a view about being VAT registered when it comes to finance? Some brokers are saying you must be, and if you go with another broker who doesn’t require it, you may end up getting black listed by the lender? 

If your not in the VAT club its not worth bothering is it ?, Not many deals in a year to stay under the threshold of VAT . 

Not that i agree with 20% , it should be 5% in my mind , and every one should be made to join . Rant over 

[JDM1983 28]

14 minutes ago, Mark101 said:

I am not sure how anyone can stay "unregistered" for VAT in this game.

It’s just early days and I’m not at VAT threshold yet, no doubt would have to do it before end of financial year, but naturally wanted to drag it out as long as possible

[David Horgan 564]

21 hours ago, NOACROSS said:

 

Zuto give commission? Quite respectable too I think  -only done one deal with them so can’t remember how much it was  

Another vote for Mallard. Nice people. Same with Zebra (Autobahn now)

 

Never give us commission even after me asking why not , I spend my life converting customers to our finance firms . 

Probably annoys them somewhat but its my car i'm selling so i sell it how i like to who i like when i like . When they try and charge me its a dead deal for them as far as I'm  concerned . 

Had some scarce  types of low mileage stock and Zuto /24'7 have tried to deal their customers into them . Think I'm letting them sell them to their customers they have another think coming , Close , Blue and Moto Novo cars and nothing else , Zuto do squirm when i say no haha 

[Mark101 536]

6 minutes ago, David Horgan said:

If your not in the VAT club its not worth bothering is it ?, Not many deals in a year to stay under the threshold of VAT . 

Not that i agree with 20% , it should be 5% in my mind , and every one should be made to join . Rant over 

I don't have a problem with VAT, I have a problem with the margin scheme and the way it is calculated.

As a dealer, we add value and the best way to do this is to buy something that needs a bit of recon BUT..... because of the margin scheme; If you buy a vehicle for £1,000 and sell for £4,000 (hypathtical I know).  You will pay £500 margin.  So what you may think but what about if you have spent £2,000 + VAT in prep?  Yes you claim the £400 VAT back but your nett margin is still only £500. 

[CRW 73]

1 hour ago, Mark101 said:

I don't have a problem with VAT, I have a problem with the margin scheme and the way it is calculated.

As a dealer, we add value and the best way to do this is to buy something that needs a bit of recon BUT..... because of the margin scheme; If you buy a vehicle for £1,000 and sell for £4,000 (hypathtical I know).  You will pay £500 margin.  So what you may think but what about if you have spent £2,000 + VAT in prep?  Yes you claim the £400 VAT back but your nett margin is still only £500. 

I can see where you are coming from and I understand your figures are hypothetical, but in a way you are a little bit blinded by the fact you bought a £4k retail car for just a £1k. Fantastic if it only needs £500+vat worth of prep, but that £1k car isn't a cheap car when you spend £2k+vat prepping it. That car now owes you £3400 and is worth £4k retail, its a margin I know but its never going to make you rich. However, I understand this is a VAT thread, (that started life as a finance thread), not a margin one, everyone has their own way of doing things. VAT is just a quarterly kick in the balls!

Edited July 16, 2019 by CRW

[Tadams 29]

2 hours ago, David Horgan said:

Never give us commission even after me asking why not , I spend my life converting customers to our finance firms . 

Probably annoys them somewhat but its my car i'm selling so i sell it how i like to who i like when i like . When they try and charge me its a dead deal for them as far as I'm  concerned . 

Had some scarce  types of low mileage stock and Zuto /24'7 have tried to deal their customers into them . Think I'm letting them sell them to their customers they have another think coming , Close , Blue and Moto Novo cars and nothing else , Zuto do squirm when i say no haha 

Baffled.. such a narrow-minded approach to sales in my eyes. 

Why wouldn't you want a relationship with companies that have endless amounts of pre-approved customers who are ready to buy? I'm not sure about others but we are in the market of selling cars, as much as people may not like it brokers help us to do that, quite easily and quite often at minimal cost, and yeh I'm sure they are devastated when you pull your 15 cars from the stock search  

[Rory RSC 596]

7 minutes ago, Tadams said:

Baffled.. such a narrow-minded approach to sales in my eyes. 

Why wouldn't you want a relationship with companies that have endless amounts of pre-approved customers who are ready to buy? I'm not sure about others but we are in the market of selling cars, as much as people may not like it brokers help us to do that, quite easily and quite often at minimal cost, and yeh I'm sure they are devastated when you pull your 15 cars from the stock search  

David isn't daft.

 

We don't deal with any external brokers, if you want one of our cars you can buy it from me, through my finance companies and let me earn the commission. We charge fair rates usually saving the customer money on their quote. We get paid more, the customer gets a better deal. Plusand the big plus its time saved, zuto / cf247 etc etc all take time to do the deals with. Its never quicker than just dealing with your own lenders and broker. 

 

You pay them £90 / £180 a deal but once you start seeing a bit of finance commission and make the amount we make per month on it its worth a hell of a lot of money to us as a business and worth protecting.

[Tadams 29]

1 minute ago, Rory RSC said:

David isn't daft.

 

We don't deal with any external brokers, if you want one of our cars you can buy it from me, through my finance companies and let me earn the commission. We charge fair rates usually saving the customer money on their quote. We get paid more, the customer gets a better deal. Plusand the big plus its time saved, zuto / cf247 etc etc all take time to do the deals with. Its never quicker than just dealing with your own lenders and broker. 

 

You pay them £90 / £180 a deal but once you start seeing a bit of finance commission and make the amount we make per month on it its worth a hell of a lot of money to us as a business and worth protecting.

Organic customers yes I agree but customers we never would have had without them, it's a small win to pinch the deal as it certainly doesn't last very long (we tried ) and we got taken off their search and no more customers. 

We still sell our finance through prime lenders but stuff that falls out of them goes to Zuto to broker and we still see decent comms for those deals. 

Wasnt calling anyone daft so apologies if that's how it read, the beauty of the industry I guess that everyone does things differently. 

[Rory RSC 596]

40 minutes ago, Tadams said:

Organic customers yes I agree but customers we never would have had without them, it's a small win to pinch the deal as it certainly doesn't last very long (we tried ) and we got taken off their search and no more customers. 

We still sell our finance through prime lenders but stuff that falls out of them goes to Zuto to broker and we still see decent comms for those deals. 

Wasnt calling anyone daft so apologies if that's how it read, the beauty of the industry I guess that everyone does things differently. 

I used to, thing is the customers always see YOUR CAR somewhere which leads them to make contact with these parasites and without your car  they aint buying anything. Quote them 0.5% APR better than the online broker with no physical stock to sell and you win more than you lose.

[David Horgan 564]

5 hours ago, Tadams said:

Baffled.. such a narrow-minded approach to sales in my eyes. 

Might only have 15 cars on sale today , but i cant keep up with the stock more than half my sales don't hit the web site mind , I do have two sites as well .  eg 6 deals today 4 on finance , one 24/7 finance to which i said NO , the customer then went and found me and the car online , I saved him £32 a month with Moto Novo and took a chunk on commission £32 x 60 months is £1,920 i saved him , He hates 24/7 more than me now . 

My conclusion is  if we all pulled out of these leaches that want OUR and your Cars they wouldn't have a business would they and we and you would have heavier wallets . 

I must say to them 15 times a month NO and I always sell the cars very soon afterwards , usually on a finance quote too . 

I average 40 -45 cars a month if 10 went to 24/7 i would lose £2,500 a month commissions on average  if i only sold half of the 10 on finance , 12 months of that and its 30 k , if i said yes and paid 24/7 their £180 + vat i would be £900 a month worse off for the same 5 cars 900 x 12 = £10,800 DOWN instead of £30,000 UP and remember thats only 5 cars not the 10 or even 15 i say no too . 

NO is my answer to 24/7 and always will be till they realise we want commission from the sale , simples 

Rory is right too , Thanks Rory , I ain't been smacked with the daft brush YET 

BUT we all ,do make different choices and do things different , of that i fully agree . NO offence Tadams  by the way , I'm  just very old school . Nothing offends me so long as I'm earning money to the max .

[JDM1983 28]

On 16/07/2019 at 10:09 AM, David Horgan said:

Never give us commission even after me asking why not , I spend my life converting customers to our finance firms . 

Probably annoys them somewhat but its my car i'm selling so i sell it how i like to who i like when i like . When they try and charge me its a dead deal for them as far as I'm  concerned . 

Had some scarce  types of low mileage stock and Zuto /24'7 have tried to deal their customers into them . Think I'm letting them sell them to their customers they have another think coming , Close , Blue and Moto Novo cars and nothing else , Zuto do squirm when i say no haha 

Signed up with Zuto today, got the Comm sheet through, it’s a sliding scale depending on how many deals you do a month but deal 1–5 is £390 per deal, for prime or sub-prime, valued £2.5k to £100k

[David Ayers 171]

Do really work for CFG or are you actually one of their rivals who have come on here to spam everybody in an attempt to damage CFGs business by annoying multiple dealers.

If so may I congratulate you on a successful operation Sir!