Setting up as a car finance reseller?

[KingRichard]

How would one go about setting up as a reseller of vehicle finance?

I'm just thinking about the possibility of arranging finance to a niche market (commercial), and piggybacking a commission from a vehicle manufacturer by selling their vehicles as a result.

Effectively becoming a vehicle broker, and a finance broker...

Does anyone do this at the moment? It just struck me that I know loads of people who need to buy new vehicles but can struggle to find finance (not financially savvy, or just lazy). If I could roll the two together I could make a killing

[mwg123]

You would be setting up a leasing company would you not? I can't see any differance.

Matt

[mas99]

Big difference.

If you are a leasing co then you have to take the risk of ownership/depreciation. All sorts of risk there.

Providing a finance introduction and a new vehicle means that you are putting all the risk onto the buyer and the finance co.


I know which I would choose.

[pgilc1]

KingRichard said:

How would one go about setting up as a reseller of vehicle finance?

I'm just thinking about the possibility of arranging finance to a niche market (commercial), and piggybacking a commission from a vehicle manufacturer by selling their vehicles as a result.

Effectively becoming a vehicle broker, and a finance broker...

Does anyone do this at the moment? It just struck me that I know loads of people who need to buy new vehicles but can struggle to find finance (not financially savvy, or just lazy). If I could roll the two together I could make a killing

Surely the likes of broadspeed etc do this already by brokering cars and offering finance packages?

Hows the property development business you were setting up coming along?

Or the bus company?

Or being a UK agent for a far east freight forwarding company?

Or becoming an equities trader?

Surely if you need to ask incredibly fundamental questions about these areas, then maybe you dont have the experience required to actually do it?

Edited by pgilc1 on Monday 13th April 16:41

Edited by pgilc1 on Monday 13th April 16:44

Edited by pgilc1 on Monday 13th April 16:48

[mwg123]

mas99 said:

Big difference.

If you are a leasing co then you have to take the risk of ownership/depreciation. All sorts of risk there.

Providing a finance introduction and a new vehicle means that you are putting all the risk onto the buyer and the finance co.


I know which I would choose.

Nope your wrong. Two of my friends own and run car and comercial leasing companies. They will source a car or van at the best price for a dealer, make a SMALL margin on the vehicle and a margin from the finace house with the best lease deal i.e finace commision. The finace house take the risk on the vehicles future value.

Matt

[1]

mwg123 said:

mas99 said:

Big difference.

If you are a leasing co then you have to take the risk of ownership/depreciation. All sorts of risk there.

Providing a finance introduction and a new vehicle means that you are putting all the risk onto the buyer and the finance co.


I know which I would choose.

Nope your wrong. Two of my friends own and run car and comercial leasing companies. They will source a car or van at the best price for a dealer, make a SMALL margin on the vehicle and a margin from the finace house with the best lease deal i.e finace commision. The finace house take the risk on the vehicles future value.

Matt

King Richard described a finance/vehicle brokerage, you said it sounded like a he wanted to start a finance company, MAS99 explained the difference and then you correct him and explained how your mates ran a finance/vehicle broker????

Me no understand .

Is someone else using your login or are you displaying the early signs of a multiple personality disorder?

[1]

pgilc1 said:

KingRichard said:

How would one go about setting up as a reseller of vehicle finance?

I'm just thinking about the possibility of arranging finance to a niche market (commercial), and piggybacking a commission from a vehicle manufacturer by selling their vehicles as a result.

Effectively becoming a vehicle broker, and a finance broker...

Does anyone do this at the moment? It just struck me that I know loads of people who need to buy new vehicles but can struggle to find finance (not financially savvy, or just lazy). If I could roll the two together I could make a killing

Surely the likes of broadspeed etc do this already by brokering cars and offering finance packages?

Hows the property development business you were setting up coming along?

Or the bus company?

Or being a UK agent for a far east freight forwarding company?

Or becoming an equities trader?

Surely if you need to ask incredibly fundamental questions about these areas, then maybe you dont have the experience required to actually do it?

I was thinking the very same thing.

[Merc fan]

Looks like you need three things.

(1) Contacts with many finance companies. These could be banks or leasing companies. They will give you commission but their own business models fluctuate so you might want to deal with a few to avoid being left high and dry when one of them moves away from cars (as a lot of them have recently with crashing residual values)
(2) Contacts with car manufacturers or their concessionaires or dealers. Who will give you the best commission?
(3) Customers!

Looks like you are wanting to follow the model of Lings Cars, no?

[mwg123]

1 said:

mwg123 said:

mas99 said:

Big difference.

If you are a leasing co then you have to take the risk of ownership/depreciation. All sorts of risk there.

Providing a finance introduction and a new vehicle means that you are putting all the risk onto the buyer and the finance co.


I know which I would choose.

Nope your wrong. Two of my friends own and run car and comercial leasing companies. They will source a car or van at the best price for a dealer, make a SMALL margin on the vehicle and a margin from the finace house with the best lease deal i.e finace commision. The finace house take the risk on the vehicles future value.

Matt

King Richard described a finance/vehicle brokerage, you said it sounded like a he wanted to start a finance company, MAS99 explained the difference and then you correct him and explained how your mates ran a finance/vehicle broker????

Me no understand .

Is someone else using your login or are you displaying the early signs of a multiple personality disorder?

No i didn't. I said it sounded like he was setting up a "leasing company". I work very closely with companies like these.

Multiple personality disorder? I am only trying to give my advise. If you think it wrong or unhelpful thats fine. But button your lip next time!

[1]

mwg123 said:

Stuff about being the only one giving advice and that he doesn't have a multiple personality disorder.

If you know what you were on about then why say it sounds like a "finance company" when he was obviously describing a brokerage. The clue is when he said "effectively becoming a reseller of finance".

I would also be interested to know what advice you are offering, so far you don't appear to have offered any.

[KingRichard]

1 said:

pgilc1 said:

KingRichard said:

How would one go about setting up as a reseller of vehicle finance?

I'm just thinking about the possibility of arranging finance to a niche market (commercial), and piggybacking a commission from a vehicle manufacturer by selling their vehicles as a result.

Effectively becoming a vehicle broker, and a finance broker...

Does anyone do this at the moment? It just struck me that I know loads of people who need to buy new vehicles but can struggle to find finance (not financially savvy, or just lazy). If I could roll the two together I could make a killing

Surely the likes of broadspeed etc do this already by brokering cars and offering finance packages?

Hows the property development business you were setting up coming along?

Or the bus company?

Or being a UK agent for a far east freight forwarding company?

Or becoming an equities trader?

Surely if you need to ask incredibly fundamental questions about these areas, then maybe you dont have the experience required to actually do it?

I was thinking the very same thing.

So you're telling me that neither of you investigate opportunities that come your way?! And then you go out of your way to try and belittle somebody that does? Bit sad, no?

As it happens, I now have a very solid young business under my feet, and I'm sniffing around for things to compliment it but if I started harping on about how well things are going, no doubt someone on PH would see fit to tear me to pieces for it.

If you don't have anything valuable to contribute, don't bother reading or replying.

[KingRichard]

mwg123 said:

mas99 said:

Big difference.

If you are a leasing co then you have to take the risk of ownership/depreciation. All sorts of risk there.

Providing a finance introduction and a new vehicle means that you are putting all the risk onto the buyer and the finance co.


I know which I would choose.

Nope your wrong. Two of my friends own and run car and comercial leasing companies. They will source a car or van at the best price for a dealer, make a SMALL margin on the vehicle and a margin from the finace house with the best lease deal i.e finace commision. The finace house take the risk on the vehicles future value.

Matt

Yeah that is kind of what I mean, but not leasing. The transaction would be the same though, ie; effectively just being an introducer.

[mwg123]

1 said:

mwg123 said:

Stuff about being the only one giving advice and that he doesn't have a multiple personality disorder.

If you know what you were on about then why say it sounds like a "finance company" when he was obviously describing a brokerage. The clue is when he said "effectively becoming a reseller of finance".

I would also be interested to know what advice you are offering, so far you don't appear to have offered any.

When did i say it sounds like a finance company?

[KingRichard]

Merc fan said:

Looks like you are wanting to follow the model of Lings Cars, no?

Thanks for the reply.

Lings cars is just contract hire - I want no further part in the process except for the sourcing of vehicles and finance, taking a cut as an agent.

[KingRichard]

mwg123 said:

1 said:

mwg123 said:

Stuff about being the only one giving advice and that he doesn't have a multiple personality disorder.

If you know what you were on about then why say it sounds like a "finance company" when he was obviously describing a brokerage. The clue is when he said "effectively becoming a reseller of finance".

I would also be interested to know what advice you are offering, so far you don't appear to have offered any.

When did i say it sounds like a finance company?

mwg - it doesn't appear he is offering any value to the thread other than picking holes.

Thanks for your post

[pgilc1]

KingRichard said:

So you're telling me that neither of you investigate opportunities that come your way?! And then you go out of your way to try and belittle somebody that does? Bit sad, no?

I evaluate all business opportunities that are relevant to my experience, thus i dont come on to forums asking things like 'can anyone tell me how to become the UK arm of an international haulage group' or whatever. If you have to ask such fundamentals, then its probably a fair bet you dont have the experience, no?

KingRichard said:

As it happens, I now have a very solid young business under my feet, and I'm sniffing around for things to compliment it but if I started harping on about how well things are going, no doubt someone on PH would see fit to tear me to pieces for it.

I'm not sure how international haulage / equities broker / property development (missed the boat a bit on that one though) / finance company compliments taxiing?

KingRichard said:

If you don't have anything valuable to contribute, don't bother reading or replying.

Maybe if you dont have anything valid to ask then you shouldnt be posting? Your mates talking about something down the pub does not constitute a business model.

What will it be next week? "I'm thinking of setting up a World Bank. Can someone tell me how to do it?", "i'm thinking of staging a political coo and invading nicaragua, does anyone know where i hire some tanks?"

I guess there are people on here happy enough to humour you, just dont get all shirty when people question your depth of (a) knowledge and (b) your ability to deliver.

Edited by pgilc1 on Tuesday 14th April 12:46

Edited by pgilc1 on Tuesday 14th April 12:48

[Merc fan]

KingRichard said:

Merc fan said:

Looks like you are wanting to follow the model of Lings Cars, no?

Thanks for the reply.

Lings cars is just contract hire - I want no further part in the process except for the sourcing of vehicles and finance, taking a cut as an agent.

It's a pleasure. I thought Ling does exactly what you are trying to do i.e. she sources the cars and sources the finance (contract hire alone in her case) and takes a cut on both i.e. she is purely an agent / intermediary. You ought to Google her and look into her model. The Dragon's Den episode she was on is on You Tube I believe too and this could be an invaluable source of information. Hope it works out for you. Let us know!

[KingRichard]

pgilc1 said:

KingRichard said:

So you're telling me that neither of you investigate opportunities that come your way?! And then you go out of your way to try and belittle somebody that does? Bit sad, no?

I evaluate all business opportunities that are relevant to my experience, thus i dont come on to forums asking things like 'can anyone tell me how to become the UK arm of an international haulage group' or whatever. If you have to ask such fundamentals, then its probably a fair bet you dont have the experience, no?

KingRichard said:

As it happens, I now have a very solid young business under my feet, and I'm sniffing around for things to compliment it but if I started harping on about how well things are going, no doubt someone on PH would see fit to tear me to pieces for it.

I'm not sure how international haulage / equities broker / property development (missed the boat a bit on that one though) / finance company compliments taxiing?

KingRichard said:

If you don't have anything valuable to contribute, don't bother reading or replying.

Maybe if you dont have anything valid to ask then you shouldnt be posting? Your mates talking about something down the pub does not constitute a business model.

What will it be next week? "I'm thinking of setting up a World Bank. Can someone tell me how to do it?", "i'm thinking of staging a political coo and invading nicaragua, does anyone know where i hire some tanks?"

I guess there are people on here happy enough to humour you, just dont get all shirty when people question your depth of (a) knowledge and (b) your ability to deliver.

Edited by pgilc1 on Tuesday 14th April 12:46

Edited by pgilc1 on Tuesday 14th April 12:48

You are Ian Beale AICMFP

[KingRichard]

Merc fan said:

KingRichard said:

Merc fan said:

Looks like you are wanting to follow the model of Lings Cars, no?

Thanks for the reply.

Lings cars is just contract hire - I want no further part in the process except for the sourcing of vehicles and finance, taking a cut as an agent.

It's a pleasure. I thought Ling does exactly what you are trying to do i.e. she sources the cars and sources the finance (contract hire alone in her case) and takes a cut on both i.e. she is purely an agent / intermediary. You ought to Google her and look into her model. The Dragon's Den episode she was on is on You Tube I believe too and this could be an invaluable source of information. Hope it works out for you. Let us know!

Thanks, I've actually spoken to ling on a few occasions. She is actually as crazy as you suspect!

I'll tap her up!

[pgilc1]

KingRichard said:

You are Ian Beale AICMFP

No. A realist.