Car sourcing

[Whitty6]

Hi,

I recently posted regarding selling cars as a business and tanks to those who responded with the input and help.
Another avenue i was looking at was sourcing cars and lease deals.
I have some good contacts in the sporting world and these deals are very popular at the minute.
For example- Mercedes ML250 £1500 deposit, £450pm, 24 month term

These deals are obviously sources from the car houses themselves Mercedes,BMW etc but what hidden cost is then taken by the middle man and how does he receive this money if the customer pays that full amount to Mercedes etc..? Im thinking maybe £20 per month has been added which then means the middle man has earned £480 for pretty much introducing the person to someone who works in the showroom? Easy money i suppose if you can get it.
What are your thoughts and if anyone has any experience in this field or alike id be interested to hear your take.

Regards

[rfoster]

That's pretty much how all finance brokers / car leasing brokers work and earn their money.

[Whitty6]

How is it that the middle man gets paid though?
Does the customer or the car company pay you?

If you simply worked in this field and not keeping car stock would you still need the licences and insurances that car dealers require?

[POORCARDEALER]

They get a commission from the lease deal which is basically a finance agreement (usually off the lease deal underwriters, ie the finance companies)

On a lumpy prestige car they might earn a grand, on bread and butter cars could be as little as 200 quid

[DocArbathnot]

Plenty will buy into a fanchise and work from a spare room. You need to work hard to generate an income. Contacts and networking is the answer, be prepared for plenty of cold calling until you've built these up.

http://www.networkvehicles.com/network-franchisees... Is one of the more respected outfits.

[rfoster]

Whitty6 said:

How is it that the middle man gets paid though?
Does the customer or the car company pay you?

If you simply worked in this field and not keeping car stock would you still need the licences and insurances that car dealers require?

They get a commission from the leasing / finance company. All finance brokers are required to hold a consumer credit licence. If the broker wants to offer any insurance products (including GAP, Payment Protection etc) then they also have to be regulated by the FSA (soon to be FCA.)