Dealer discounts

[Rufus]

Apple use clysdale bank for finance on all their products, one of the richest companies in the world

 

why ??

 

because they are not a bank and they are not regulated to do so, and it's not profitable to do so

 

also OPC s are generally not independently owned, most are part of huge companies who own BMW and Maserati and VW dealers

 

hate not not getting on with fellow forum members, but having this conversation with a fellow owner is strange as you didn't know this.  I honestly thought it was common knowledge

 

 

[topradio]

Rufus, you said you needed to be a bank to self finance, I said that you didn't.

Your link confirms that you don't, mate

[Rufus]

Just now, topradio said:

Rufus, you said you needed to be a bank to self finance, I said that you didn't.

Your link confirms that you don't, mate

It confirms you need to meet a lot of requirements that car dealers dont

 

honesly I'm suprised your arguing the point

 

pop into Porsche tomorrow and ask if they finance their own cars.  

 

Any dealer in in the U.K. And I'll buy you a gt4

 

this is a conversation that is silly, most adults know that finance is outsourced, you are just trying to find a slight fault in the info I provided to justify your silly assumption that they get the lions share

 

seriously ??? 

 

Really ???

[topradio]

When I said that they were independent I meant that they were not owned by Porsche. Most aren't

I agree that they use outside finance and they probably don't make a lot on it. However in the case I cited the total deal that they were offering for me to own the car after 3 years would have made them a substantial extra margin.

[Rufus]

4 hours ago, topradio said:

You are correct that was the interest on the loan. But as money is so cheap these days the dealer would be pretty poor if they didn't make the lions share of that.

 

You said they make the lions share of 12 grand interest 

 

that was the only reason I responded ???

[Paul O]

They make a ton of money on the finance. From what I recall (going back about 7 years mind), the finance is run by a well known car finance company, who are owned by a large bank. 

They offer financial services for a multitude of car dealers, and each will have negotiated a different rate with the finance company. The dealer then gives you their rate, which is the agreed rate plus their mark up. This is why you can negotiate better rates.

Again, this is hazy memory but if I remember correctly, whereby most companies were underwritten by the bank, Porsche actually have/had their own money and the finance company just performed the due dilligence on the top (the bank didn't use their own cash).

This sticks in my mind as I remember thinking how impressive it was that they were making so much that they could be their own bank.

[Rufus]

They have used vag group for the last 10 years and it's underwritten by Zurich, 

 

since at least 10 years ago

 

porsche don't loan their own money out but I presume they can afford it, 

9 minutes ago, Paul O said:

They make a ton of money on the finance. From what I recall (going back about 7 years mind), the finance is run by a well known car finance company, who are owned by a large bank. 

They offer financial services for a multitude of car dealers, and each will have negotiated a different rate with the finance company. The dealer then gives you their rate, which is the agreed rate plus their mark up. This is why you can negotiate better rates.

Again, this is hazy memory but if I remember correctly, whereby most companies were underwritten by the bank, Porsche actually have/had their own money and the finance company just performed the due dilligence on the top (the bank didn't use their own cash).

This sticks in my mind as I remember thinking how impressive it was that they were making so much that they could be their own bank.

Porsche aren't accredited under the Fca for money lending so not sure how this happened

 

[Paul O]

1 minute ago, Rufus said:

They have used vag group for the last 10 years and it's underwritten by Zurich, 

 

since at least 10 years ago

 

porsche don't loan their own money out but I presume they can afford it, 

Porsche aren't accredited under the Fca for money lending so not sure how this happened

 

Dunno, might have been longer then or the operative I was working with was misinformed.

[Rufus]

Bailing out of this thread as it seems I'm sticking up for OPCS

 

im not, was just sharing my experience, And what I thought was common knowledge

 

good luck guys and girls

 

and if you want finance in future on your shopping ask Morrisons and the cashier may ask the manager and sort you out .....

 

because thats apparently how it works 

 

banks ..... seriously who need em. It's all done in house hahahahahahahaha 

[Stuart21UK]

just lol....

..so the OPC/dealer isn't lending their money, probably not Porsche's money either, and whoever is lending the money needs to be FCA authorised....most likely scenario here is that:

OPC introduce to VWFS which is FCA authorised and possibly bank rolled behind the scenes by Porsche (and if not some other proper bank/financial institution (ala Apple and Barclays Finance who recently gave me zero % interest on a new iPhone 7 over 20 months )

It's possible there is some wiggle room in the APR quoted to secure the business via the agent (OPC) acting on behalf of the finance company (VWFS) and this may affect the actual broker commission they (OPC) receive too.

Either way they aren't making £13000 on the deal at the dealership on finance alone...more likely the 5-8% our man (now gone for a lie down) Rufus has aleyed to i.e. circa £600-1000

the end

 

[cj225]

Just to offer experience of this environment, the company who own the dealership (Dick Lovett, for example) act as an agent or intermediary for VAG/Zurich.

It's not in their interest to supply finance, but they provide it.  Salesmen need to have the relevant financial certificate to sell it, too (including Motab).

As any intermediary would tell you, they get special kickbacks for selling finance, sometimes combined with dealer incentives.  When i worked at Ford, we'd get bigger discounts from the PCP offers than the standard employee Privilege discount.  

 

You don't need to be a bank to lend money though, as per a number of lending platforms these days.  I had a loan for two years from LendingWorks who weren't a bank.

[Happy Days]

15 hours ago, topradio said:

Fortunately NI is in the UK so you just have to pop over the water and shop around to take any advantage of any available discounts.

Obviously as the NI dealer has a monopoly he will try to maximise his profit. When you realise what discounts have been available you see just what sort of mark-up the dealers can make selling at list. I am sure that Porsche UK understand that some will want to bargain and set the RRP accordingly.  

For now it is. But then there'd be the cost of travelling to the UK to pick it up plus the transport costs back home so it probably wouldn't be much better off. 

On the finance argument ???, I have a pal who arranges agri finance and he did me a great finance deal for the balance of my car payment.

The dealer almost had a heart attack when he realised he wasn't getting a shot at the financing. I reckon they make more from the finance than they do from the car. It's why dealers are so keen to offer finance probably. 

Anyhow, when this situation arose, the price of my trade in suddenly fell rather dramatically. I wonder why? So I kept it and sold it privately yesterday.