Start Leasing and Financing Cars

[somersj001]

Hi, I'm looking to start leasing and financing cars. I'm in Northern Ireland BTW.

I assume I make profit using admin fees?
Where do you access the deals to offer on? I have seen franchises etc but they seem like a waste of money to me? Surely theres a way to acquire such lists from the manufacturers?
What exactly would my job entail? Do I act as a middle man to a firm?
Any other comments anyone can make on this idea?

Very early stages in the thought process but looking forward to reading some responses

Thanks

[KevinCamaroSS]

First questions to ask for me would be:

1) What regulations do I need to comply with?
2) Where will I source my financing from?
3) Where will I source my cars from?
4) Can I be competitive against existing providers?

[MDMA .]

somersj001 said:

Hi, I'm looking to start leasing and financing cars. I'm in Northern Ireland BTW.

I assume I make profit using admin fees?
Where do you access the deals to offer on? I have seen franchises etc but they seem like a waste of money to me? Surely theres a way to acquire such lists from the manufacturers?
What exactly would my job entail? Do I act as a middle man to a firm?
Any other comments anyone can make on this idea?

Very early stages in the thought process but looking forward to reading some responses

Thanks

don't take this the wrong way, but you are looking at setting up in business with no clue as to what it entails or how to go about it.

good luck.

[HoHoHo]

MDMA . said:

somersj001 said:

Hi, I'm looking to start leasing and financing cars. I'm in Northern Ireland BTW.

I assume I make profit using admin fees?
Where do you access the deals to offer on? I have seen franchises etc but they seem like a waste of money to me? Surely theres a way to acquire such lists from the manufacturers?
What exactly would my job entail? Do I act as a middle man to a firm?
Any other comments anyone can make on this idea?

Very early stages in the thought process but looking forward to reading some responses

Thanks

don't take this the wrong way, but you are looking at setting up in business with no clue as to what it entails or how to go about it.

good luck.

Harsh but fair

[culpz]

As above really. No offence intended here, but you don't really seem to have a plethora of knowledge in general on leasing cars as a business point of view.

I admire your enthusiasm to want to start your own business but there are that many companies out there doing the same thing, who are already well-regarded with good reputations in the sector, that i think you would genuinely need some kind of USP or know some decent contacts to set you up on the off.

A friend's uncle of mine had his own car leasing business a number of years ago now. He turned it into a family-run company and was very profitable for a good few years. He specialised in prestige cars due to some contacts he knew and ended up with a decent fleet that he put out at competitive prices. However, things started to go downhill when his contacts could only provide him with much cheaper and basic cars that his customer's didn't want. Unfortunately, the business ended up going into liquidation shortly afterwards.

In all fairness, at the time, i don't think leasing was booming as much as it is today. There were also other factors that definitely lead to the company's demise. I'm in no way a businessman and i don't want to put you off as that's not my intention. I'd just strongly advise to do ALOT of research and definitely come up with a plan going forward. It's most definitely a very competitive area of business and you will going up against others who have had many years experience doing the exact same thing.

[somersj001]

KevinCamaroSS said:

First questions to ask for me would be:

1) What regulations do I need to comply with?
2) Where will I source my financing from?
3) Where will I source my cars from?
4) Can I be competitive against existing providers?

I've looked into regulations, and have some different options for financing and leasing. The reason I was asking was in hope that someone could recommend other places or companies that I could contact to give me the best chance at competing with existing providers.

Thanks for the positive response

[somersj001]

MDMA . said:

don't take this the wrong way, but you are looking at setting up in business with no clue as to what it entails or how to go about it.

good luck.

Do you ever want to try something new? Probably not, so you'll never understand.

Thanks for the negativity though, if you've no productive input keep it to yourself.

[CaptainSlow]

Are you looking to be a broker or build up your own portfolio?

[somersj001]

culpz said:

As above really. No offence intended here, but you don't really seem to have a plethora of knowledge in general on leasing cars as a business point of view.

I admire your enthusiasm to want to start your own business but there are that many companies out there doing the same thing, who are already well-regarded with good reputations in the sector, that i think you would genuinely need some kind of USP or know some decent contacts to set you up on the off.

A friend's uncle of mine had his own car leasing business a number of years ago now. He turned it into a family-run company and was very profitable for a good few years. He specialised in prestige cars due to some contacts he knew and ended up with a decent fleet that he put out at competitive prices. However, things started to go downhill when his contacts could only provide him with much cheaper and basic cars that his customer's didn't want. Unfortunately, the business ended up going into liquidation shortly afterwards.

In all fairness, at the time, i don't think leasing was booming as much as it is today. There were also other factors that definitely lead to the company's demise. I'm in no way a businessman and i don't want to put you off as that's not my intention. I'd just strongly advise to do ALOT of research and definitely come up with a plan going forward. It's most definitely a very competitive area of business and you will going up against others who have had many years experience doing the exact same thing.

None taken, this is the research stage anyway and I don't plan to dive into something without doing home work. I've some ideas to make my business stand out from the rest. I'm also not going at it alone as I have a potential partner who sells cars. Leasing and finance would just give me that bit more to offer.

Thanks

[Eric Mc]

Also - you will need to know and understand the very complicated accounting regulations surrounding businesses that lease assets. It's a very complex area in regards to accounting, the legal regulations, insurance and tax.

Speak to someone with experience in the trade.

Speak to an accountant.

[somersj001]

CaptainSlow said:

Are you looking to be a broker or build up your own portfolio?

I'd ideally like to build up my own portfolio.

Thanks

[somersj001]

Eric Mc said:

Also - you will need to know and understand the very complicated accounting regulations surrounding businesses that lease assets. It's a very complex area in regards to accounting, the legal regulations, insurance and tax.

Speak to someone with experience in the trade.

Speak to an accountant.

I have an accountant, it's the rules and regulations that I'll have to do a bit more research on.

Thanks

[Eric Mc]

It's a minefield. I am sure you would be covered by certain financial type regulations as you would probably be looked on as a lender (depending on the types of leases you intend to offer). So you would perhaps come under the auspices of the FCA.

This would be on top of all the normal rules and regulations a business needs to comply with.

Your accountant is the person who should be providing you with all you need to know.

[CaptainSlow]

somersj001 said:

CaptainSlow said:

Are you looking to be a broker or build up your own portfolio?

I'd ideally like to build up my own portfolio.

Thanks

In that case you're far away from the required level of knowledge and you may wish to consider an alternative business. Have you considered the retailing of Cornish sourced snack foods?

[Frimley111R]

The big challenge I see with this is it's a 'race to the bottom' in terms of pricing. Can you sell/lease cheaper than the next guy?

It'll be challenging but then a new business always is. Good luck.

[Mandat]

It sounds that you have a limited amount of knowledge or experience in the leasing game.

I would suggest that you might want to go and work for a leasing company for 6-12 months, so that you can learn all the ins & outs of the industry, and get paid for it at the same time.

[daemon]

somersj001 said:

CaptainSlow said:

Are you looking to be a broker or build up your own portfolio?

I'd ideally like to build up my own portfolio.

Thanks

Sounds like a great way to make a small fortune!

From a large one.

I'd seriously avoid this. Much big players have the market sewn up and have massive buying power and financing power.

Its a race to the bottom on price.

[daemon]

somersj001 said:

MDMA . said:

don't take this the wrong way, but you are looking at setting up in business with no clue as to what it entails or how to go about it.

good luck.

Do you ever want to try something new? Probably not, so you'll never understand.

Thanks for the negativity though, if you've no productive input keep it to yourself.

With respect, something like 90% of all startups fail in the first two years. You're proposing going in to a cash hungry, high risk, low margin business with absolutely no experience.

Double your chances of success - buy a lottery ticket for tonights lottery.

Taking a bit of heat from people with real world experience is an awful lot cheaper than finding out the hard way with your own hard earned.

Edited by daemon on Wednesday 30th November 18:12

Edited by daemon on Wednesday 30th November 18:12

[MDMA .]

somersj001 said:

MDMA . said:

don't take this the wrong way, but you are looking at setting up in business with no clue as to what it entails or how to go about it.

good luck.

Do you ever want to try something new? Probably not, so you'll never understand.

Thanks for the negativity though, if you've no productive input keep it to yourself.

The productive input was wishing you luck. I deal with the biggest lease companies in the country every day and process around 2000 vehicles a year. Taking on advice and listening to others with experience is a good way to get ahead in any business.

I'd say you'll need more luck now than the established players

[hyphen]

KevinCamaroSS said:

First questions to ask for me would be:
4) Can I be competitive against existing providers?

http://www.lingscars.com/