Questions about Car Brokers

[autovantaofficial]

I had a couple questions about car brokers:

1. How much commission do dealerships pay them (a rough idea, etc)?

2. Do dealers like working with brokers or do they prefer the client directly?

3. Are brokers outdated/oversaturated?

4. Do brokers really help for the average person?

Thank you for your responses!

 

[Baron Ringler]

I had a couple questions about car brokers:

1. How much commission do dealerships pay them (a rough idea, etc)?

2. Do dealers like working with brokers or do they prefer the client directly?

3. Are brokers outdated/oversaturated?

4. Do brokers really help for the average person?

Thank you for your responses!

Let's hit these one at a time.

#!) The stores do not commission the brokers. The brokers are a middleman that buy the car from the dealer and sell to the consumer. These are almost always lease transactions with the broker underwriting their own leases. It's the only way they can make money because straight up cost they can't compete with a dealer, the people who sell them the cars in the first place.

#2) Dealers would always rather work directly with customers. It's level of control of the relationship that can lead to better results down the line. Plus, if the customer has an issue or problem, 9 times out of 10 it's tossed in the dealer's lap, who received no real benefit from the sale.

#3) Customers who use brokers are now starting to shop them, just like they used to do the dealers. It's causing some interesting situations.

#4) Too much to get into, but the short answer is "no". Many brokers cater to a specific class of people (Jews in NY are a prime example) who have their own cultural and religious practices that, believe it or not, affect how they go about taking delivery of a vehicle. And, although some may condemn me for saying this but it's the truth, I will offer good customer service to every customer, but I am not going to put in the same level of effort as I would for someone who purchased form me. That's human nature, and anyone saying they wouldn't do that, I will question their honesty and integrity.

 

[autovantaofficial]

Basically, the idea here is an auto concierge service that simplifies the car-buying process by leveraging expert human agents to find the best deals on any car model for customers. The service offers two key options: a free service where agents research and present cars matching the customer's preferences, and a premium service where agents negotiate the car price on behalf of the customer. Once a customer selects a car, the agent connects them directly with the dealership, and the business earns a commission from the dealer for successful referrals. This model prioritizes convenience, expertise, and transparency, aiming to digitalize the car-buying experience while minimizing the need for direct customer-dealer interactions. The point is to give consumers advice and feedback from an individual not affiliated with the seller of the car, if that makes sense.

Everything is done online via a SAAS. (Between agent and consumer. Dealers and Agent use traditional methods)

Number 1: The dealers don't hire brokers, but they pay a commission fee on a sale, correct? I think you misunderstood me.
Number 2: We hand consumers over to the dealer at the end. I don't buy the car.
Number 4: If the service is free and simplified with an online SAAS....then could it be something attractive to a general audience?

 

[Carsten]

So lead gen for a dealer?
You are asking for a commission on the sale?

I suspect you will only make as much as the dealer down the street who sends a customer to another dealer.

I love how you have all these ideas!
Hopefully, you will settle on one and just keep hacking away at it!

 

[autovantaofficial]

So lead gen for a dealer?
You are asking for a commission on the sale?

I suspect you will only make as much as the dealer down the street who sends a customer to another dealer.

I love how you have all these ideas!
Hopefully, you will settle on one and just keep hacking away at it!

No not a lead gen. Broker as a SAAS for consumer side of things. Old fashion for me and dealer relations.

 

[kylewilliam]

I had a couple questions about car brokers:

1. How much commission do dealerships pay them (a rough idea, etc)?

2. Do dealers like working with brokers or do they prefer the client directly?

3. Are brokers outdated/oversaturated?

4. Do brokers really help for the average person and best like Mike Murphy Ford reviews?

Thank you for your responses!

Hi, Commission: Car brokers typically earn a commission that ranges from 1% to 3% of the vehicle's purchase price. This can vary depending on the broker and the deal. Dealership Preferences: It depends on the dealership. Some dealers prefer working with brokers because they can streamline the process and bring in serious buyers. Others may prefer dealing directly with clients to maintain more control over the sales process. Brokers' Relevance: While the market for car brokers has become more competitive, they are not necessarily outdated. Their relevance can vary depending on regional demand and market saturation. Brokers' Effectiveness: For the average person, brokers can be quite helpful. They can negotiate better deals, save time, and provide access to a wider range of options.