Auto brokers

Multimodal · 05-02-2021, 08:37 PM

I am interested in learning more about the auto broker business. How does it work, what is the business model, what’s in it for the dealers, are there any restrictions in dealer franchise agreements that complicate the model, does the broker’s involvement end once a dealer introduction is made or are they in the loop through delivery, how do brokers avoid getting cut out by buyers once their participating dealers become known, etc.

From the outside it seems pretty straightforward - brokers help dealers clear dated inventory and push high volume custom sales to non-local buyers for competitive prices. Brokers tend to charge a $500 fee. Acquire customers via enthusiast forums and Leasehackr and word of mouth. TrueCar is probably the tech version of the broker game, providing some customer shopping tools to acquire customers beyond the sophisticated bargain hunters.

Does anyone here have experience with it as a buyer, dealer or broker?
What am I missing about how it works?

Could be an interesting side hustle...

Henry0959 · 05-03-2021, 06:23 AM

I was interested in an M3 Comp and reached out to a broker on Leasehackr in mid- March after being told by my local dealers that they were not considering any discount on a new model.

I got hassle-free contact with the broker and she had a dealer with an allocation available in April. I secured a deal with a great discount, the car was built two weeks earlier than expected, and it’s on the boat right now. For me, since I wanted to do PCD, any dealer was fine. All contact was with the broker until the deal was finalized and a deposit was made. The broker collected half her fee.

The dealer has been in touch too, and all is going smoothly. It seems like a great way to do business for me, and for the dealer with a good broker contact, a way to get non-local customers.

05-02-2021, 08:37 PM	#1
Multimodal Lieutenant Colonel 2946 Rep 1,880 Posts Drives: 2019 X5 50i, 2018 911 T Join Date: Oct 2009 Location: Annapolis, MD iTrader: (1)	Auto brokers - how does the business work? I am interested in learning more about the auto broker business. How does it work, what is the business model, what’s in it for the dealers, are there any restrictions in dealer franchise agreements that complicate the model, does the broker’s involvement end once a dealer introduction is made or are they in the loop through delivery, how do brokers avoid getting cut out by buyers once their participating dealers become known, etc. From the outside it seems pretty straightforward - brokers help dealers clear dated inventory and push high volume custom sales to non-local buyers for competitive prices. Brokers tend to charge a $500 fee. Acquire customers via enthusiast forums and Leasehackr and word of mouth. TrueCar is probably the tech version of the broker game, providing some customer shopping tools to acquire customers beyond the sophisticated bargain hunters. Does anyone here have experience with it as a buyer, dealer or broker? What am I missing about how it works? Could be an interesting side hustle... __________________ Current garage: 2023 Rivian R1S Adventure Forest Green/Ocean Coast, 2018 Porsche 911 T Carrara White Metallic/Black, 2019 Ram 2500 Big Horn Diamond Black/Diesel Gray Archived: 2019 BMW X5 50i M Sport Mineral White/Full Black,2019 Ford GT350 Ford Performance Blue/Dark Slate, 2012 BMW X5 50i Alpine White/Black, 2014 BMW 320i M Sport Melbourne Red/Black, 2009 BMW DINAN3 Alpine White/Black, 2008 BMW 335xi Alpine White/Black, 1998 BMW 328is Avus Blue/Tan
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05-03-2021, 06:23 AM	#2
Henry0959 Private First Class 158 Rep 101 Posts Drives: 2021 M3 Comp Join Date: Aug 2020 Location: Chesterfield VA iTrader: (0)	I was interested in an M3 Comp and reached out to a broker on Leasehackr in mid- March after being told by my local dealers that they were not considering any discount on a new model. I got hassle-free contact with the broker and she had a dealer with an allocation available in April. I secured a deal with a great discount, the car was built two weeks earlier than expected, and it’s on the boat right now. For me, since I wanted to do PCD, any dealer was fine. All contact was with the broker until the deal was finalized and a deposit was made. The broker collected half her fee. The dealer has been in touch too, and all is going smoothly. It seems like a great way to do business for me, and for the dealer with a good broker contact, a way to get non-local customers.
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