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I'm not interested in one, but I'm intrigued by these newcomers who began with 8x bangers three years ago and now have 100x vehicles and £700k - £1m in debts.

Who lends them such large money, and what are the terms, interest rates, and deposits?

I've had loans and overdrafts before, but never a stocking loan.I only know that when things go wrong on the job, it seems to be the stocking loans that hurt the guys who go tits up.A few years ago, he had nothing, but now he seems to be doing well. Recently, his stock was taken by the loan.It was said that he got in trouble because he put cars on his stocking loan that didn't belong to him.Also, someone told me that BCA stocking costs 9% plus extra fees, which I'm not sure is true.

Correct about BCA stock loan

I'm confused why banks give these guys big amounts with little expertise.

As a financier, I believe their exposure is rather low.

Loans are backed by collateral of a market value or below.

Each dealer puts their own assets up as collateral in a PG to secure their loan.

Which is safer, this or an unsecured personal loan?

However, I can see how it may become a major issue for the receivers if the automobiles don't sell within the specified time frame.

inevitable99 wrote: ↑Sat Jun 24, 2023 8:16 pm I'm not interested in one, but I'm intrigued by these newcomers who began with 8x bangers three years ago and now have 100x vehicles and £700k - £1m in debts.

Who lends them such large money, and what are the terms, interest rates, and deposits?

I can't answer for those specific operators, but here's what I think:

The loan company Close pays for my stock. They pay 70% of the buy contract value at an interest rate of 2.5% per year, which means that a £10K car in stock costs £21 in interest every month. A "bonnet" fee of £20 is also charged. My cap is 90 days, so if I sell the car in 45 days, it will cost me about £51.50 to pay for the loan.

Like 1

newjimmy54 wrote: ↑Sat Jun 24, 2023 8:32 pm

inevitable99 wrote: ↑Sat Jun 24, 2023 8:16 pm I'm not interested in one, but I'm intrigued by these newcomers who began with 8x bangers three years ago and now have 100x vehicles and £700k - £1m in debts.

Who lends them such large money, and what are the terms, interest rates, and deposits?

I can't answer for those specific operators, but here's what I think:

The loan company Close pays for my stock. They pay 70% of the buy contract value at an interest rate of 2.5% per year, which means that a £10K car in stock costs £21 in interest every month. A "bonnet" fee of £20 is also charged. My cap is 90 days, so if I sell the car in 45 days, it will cost me about £51.50 to pay for the loan.

Like 1

I had no idea it was that inexpensive!

newjimmy54 wrote: ↑Sat Jun 24, 2023 8:32 pm

inevitable99 wrote: ↑Sat Jun 24, 2023 8:16 pm I'm not interested in one, but I'm intrigued by these newcomers who began with 8x bangers three years ago and now have 100x vehicles and £700k - £1m in debts.

Who lends them such large money, and what are the terms, interest rates, and deposits?

I can't answer for those specific operators, but here's what I think:

The loan company Close pays for my stock. They pay 70% of the buy contract value at an interest rate of 2.5% per year, which means that a £10K car in stock costs £21 in interest every month. A "bonnet" fee of £20 is also charged. My cap is 90 days, so if I sell the car in 45 days, it will cost me about £51.50 to pay for the loan.

Like 1

Nick, after 90 days, what do you suggest? Is there a minimum level of Close you need to meet before you can apply for a place like that?

mortimerPAS wrote: ↑Sat Jun 24, 2023 8:35 pm

newjimmy54 wrote: ↑Sat Jun 24, 2023 8:32 pm

inevitable99 wrote: ↑Sat Jun 24, 2023 8:16 pm I'm not interested in one, but I'm intrigued by these newcomers who began with 8x bangers three years ago and now have 100x vehicles and £700k - £1m in debts.

Who lends them such large money, and what are the terms, interest rates, and deposits?

I can't answer for those specific operators, but here's what I think:

The loan company Close pays for my stock. They pay 70% of the buy contract value at an interest rate of 2.5% per year, which means that a £10K car in stock costs £21 in interest every month. A "bonnet" fee of £20 is also charged. My cap is 90 days, so if I sell the car in 45 days, it will cost me about £51.50 to pay for the loan.

Like 1

I had no idea it was that inexpensive!

Profits are derived through mutually beneficial trade. In order to build up a stock portfolio, you need to finance many automobiles with them.

Next Gear is far more costly, however they will cover all costs (including taxes, shipping, etc.) with no strings attached.

You have 120 days to pay the whole amount; but, they will take a percentage of the total cost of the project at 45, 60, 90, etc. days.

veroguittar wrote: ↑Sat Jun 24, 2023 8:48 pm

newjimmy54 wrote: ↑Sat Jun 24, 2023 8:32 pm

inevitable99 wrote: ↑Sat Jun 24, 2023 8:16 pm I'm not interested in one, but I'm intrigued by these newcomers who began with 8x bangers three years ago and now have 100x vehicles and £700k - £1m in debts.

Who lends them such large money, and what are the terms, interest rates, and deposits?

I can't answer for those specific operators, but here's what I think:

The loan company Close pays for my stock. They pay 70% of the buy contract value at an interest rate of 2.5% per year, which means that a £10K car in stock costs £21 in interest every month. A "bonnet" fee of £20 is also charged. My cap is 90 days, so if I sell the car in 45 days, it will cost me about £51.50 to pay for the loan.

Like 1

Nick, after 90 days, what do you suggest? Is there a minimum level of Close you need to meet before you can apply for a place like that?

Just give them back the 70% they gave you. When you click a button on a computer screen, they take the money out of your account.

Mark said that the criteria is to do a few finance deals and give them retail finance business in return. My credit is only £50,000, so I need to give them 3–4 times as much in finance business every year. They still pay me their fee on the finances, so every year I make a lot more from them than they do from me:-)

I believe that, like any loan, you must manage it and not allow it get out of hand. I had a modest stocking debt till a few years ago, and the benefit was that it kept me sharp and focused on return and making sure I sold within the time frame stated above. Negatives: Similar to a credit card, offers to raise my financing came almost every week, and it's easy to create your company on this debt. But if you utilise them intelligently, you'll be certain that you can obtain a nice financial pen and accomplish enough volume. It's someone else's money you're playing with, so don't hold it against them; instead, develop within your means. I've seen dealers grow from 10 to 50 vehicles in a year while doing nothing but working for the financing business and becoming stressed out.