Videos on autotrader and editing

[Del Boy 76]

31 minutes ago, Nick M.K. said:

+1.

I'll actually do a new post on unit stocking to address some common misconceptions that have been spread on this forum by people with limited knowledge and zero experience on the subject. 

This would be very helpful nick. I’m currently considering unit stocking to grow my business. 

[Nick M.K. 574]

4 minutes ago, Del Boy said:

This would be very helpful nick. I’m currently considering unit stocking to grow my business. 

Del I've just done in the Advanced room. If you are not in there I will send it to you in a PM. 

[trade vet 697]

45 minutes ago, Nick M.K. said:

+1.

I'll actually do a new post on unit stocking to address some common misconceptions that have been spread on this forum by people with limited knowledge and zero experience on the subject. 

OK Nick as I have zero experience.The way we se it is that it may be called unit stocking by the lenders but on your balance sheet it is down as a current liability or debt.So because of these you see a lot of car dealers whose bottom line net worth is negative which can probably make them technically insolvent.Money may be cheap at present but what happens when rates rise,we old guys recall base interest rates at 15% in 91/92.The thought of looking out the window at your stock which is on the drip when the job is quiet still frightens me.

[NacMan 67]

14 minutes ago, trade vet said:

OK Nick as I have zero experience.The way we se it is that it may be called unit stocking by the lenders but on your balance sheet it is down as a current liability or debt.So because of these you see a lot of car dealers whose bottom line net worth is negative which can probably make them technically insolvent.Money may be cheap at present but what happens when rates rise,we old guys recall base interest rates at 15% in 91/92.The thought of looking out the window at your stock which is on the drip when the job is quiet still frightens me.

[Mark101 536]

46 minutes ago, trade vet said:

OK Nick as I have zero experience.The way we se it is that it may be called unit stocking by the lenders but on your balance sheet it is down as a current liability or debt.So because of these you see a lot of car dealers whose bottom line net worth is negative which can probably make them technically insolvent.Money may be cheap at present but what happens when rates rise,we old guys recall base interest rates at 15% in 91/92.The thought of looking out the window at your stock which is on the drip when the job is quiet still frightens me.

I disagree.

Yes the debt is shown as a liability but the stock is shown as an asset. Therefore (as in the case that Close only fund 70%), the stock value will always be higher than the liabilities.

[AAM90 22]

4 hours ago, trade vet said:

The thought of looking out the window at your stock which is on the drip when the job is quiet still frightens me.

I'm with you. But we are old school.

The new way is to use debt because money is so cheap. Which is fine when the good times are rolling.

However I remember vividly the 2008 recession. Banks pulled the plug on lending almost overnight and it will happen again. The banks sent a good mate of mine down because he borrowed to the hilt. Outwardly he appeared to be a millionaire.

[Arfur Dealy 823]

8 hours ago, Rory RSC said:

You really are a complete and utter prick.

Ditto

[trade vet 697]

5 hours ago, Mark101 said:

I disagree.

Yes the debt is shown as a liability but the stock is shown as an asset. Therefore (as in the case that Close only fund 70%), the stock value will always be higher than the liabilities.

I agree with that but the main point is that there are so many dealers about who appear to do well having been around awhile but in reality their business is worth zilch while their stocking loans appear to get bigger. I don’t think large stock loans help you get ahead.

[NacMan 67]

This really did go off topic

[Arfur Dealy 823]

2 hours ago, AAM90 said:

I'm with you. But we are old school.

The new way is to use debt because money is so cheap. Which is fine when the good times are rolling.

However I remember vividly the 2008 recession. Banks pulled the plug on lending almost overnight and it will happen again. The banks sent a good mate of mine down because he borrowed to the hilt. Outwardly he appeared to be a millionaire.

This. I’ll never owe a penny to anyone ever again.

There’s nothing more learned than losing everything and your whole life through no fault of your own. People have short memories. 

Debt takes away YOUR control on your business. I’m sure it works for some very well and it’s all sweet and rosy until.... never again for me.

My business is mine, if I want to take off 6 weeks for summer with my family I can. I’m not a bitch to debt, I control my life.

That’s the difference. 

[Mark101 536]

37 minutes ago, trade vet said:

I agree with that but the main point is that there are so many dealers about who appear to do well having been around awhile but in reality their business is worth zilch while their stocking loans appear to get bigger. I don’t think large stock loans help you get ahead.

I think we are agreeing Ian.

In an ideal world, we would all like to “own” our stock, myself included.

You talk about the glory days and it is a shame we weren’t all there to reap the rewards. Each era has its day.

Our day is relatively easy funding, using someone else’s money to make our own money, which is no different to how banks make their millions. We are in fact bankers, we borrow at one price and sell at a higher price (margin).

I have genuinely lost count of the millionaires I have met as customers whom have benefitted from funding their businesses 120% above their own nett worth (former job). I know I am in the wrong game to hit that success, my business has no onward or resale value unlike my former customer’s businesses where exit to a multi national is the real value.

All that said, I reckon (given time) I will clear my previous salary and remain in control of when and how much I work and answer to no one but myself.