Jump to content
mitchel

Arblease how it works

Recommended Posts

8 hours ago, ForestryFinance said:

I heard an interesting bit of info just last week from one of the lenders I deal with. They had seen the accounts for a fairly mainstream reputable motor dealer, and in one year they had made £13,000,000 profit. That amounted to a £14,000,000 gain in referral fees from finance companies, and a £1,000,000 loss in selling cars. 

I reckon that is similar in a lot of the motor trade - the finance companies give the dealer a 5% kickback, which is why they push you on to their finance. But who pays for that? The mug consumer who ends up on a deal that's costing 9.9% a year or sometimes more. Very grim in my opinion. 

Dealer margins on cars are terrible. If they had to sell cars with no finance or servicing they would all be bust in a week. 

 

It's the manufacturer that is taking all the profit from the sale of the new vehicle not the dealer. Which is why most manufacturers are self financing or PCPing in order to allow more people to be able to afford ever more expensive cars. On a side note how is a poverty spec Golf ever worth 25K or an Audi A6 nearly 50, its madness.

 

Also, sometimes they dealer has a stocking loan with a lender. If they don't put a certain amount of borrowing their way in a month or quarter then the rate goes up on the stocking loan. Always a handy question to ask if you want some cheap finance and they are short one month. 

  • Thanks 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Featured Adverts

About

Arbtalk.co.uk is a hub for the arboriculture industry in the UK.  
If you're just starting out and you need business, equipment, tech or training support you're in the right place.  If you've done it, made it, got a van load of oily t-shirts and have decided to give something back by sharing your knowledge or wisdom,  then you're welcome too.
If you would like to contribute to making this industry more effective and safe then welcome.
Just like a living tree, it'll always be a work in progress.
Please have a look around, sign up, share and contribute the best you have.

See you inside.

The Arbtalk Team

Follow us

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.