One of the reasons why car buying customers are frustrated by the traditional dealership experience, is that they typically have only a very small window of time to make a decision about something that will affect their life for the next 5 to 10 years.
A vehicle is typically the second largest financial purchase most people make. Nowadays a car can easily cost as much as a house, and most people only buy a replacement vehicle every 5-10 years. How successful do you think the typical consumer will be at negotiating a good deal, considering that they are only actively in the car buying marketplace once or twice every few years?
When you think about it, uniformed car buyers are at a significant disadvantage, because the person who is showing you the car (salesman), works for the company selling the car (dealership) and the people who are handling the paperwork and finacial details (dealer F&I office). With a vehicle, the dealership is the seller, the agent and the closing company.
As an auto broker, you're acting as an agent for your customer, but at the end of the day, the actual transaction will be between the customer and the dealer selling the vehicle. It's somewhat similar to buying a house: Your realtor shows you the listing and helps negotiate the best deal (for everyone, including the realtor) just like a car broker.
By essentially acting as a middleman, you can potentially make a profit and get paid, before the deal is even done. You work for the customer, so your goal is to find the most attractive deal that will allow you to add in your commission/fees into the deal, either with a flat fee upfront or by a contract that outlines your commission percentage.
As the product knowledge expert, you find out what your customer's needs are, and then you find a deal that works. You might need to negotiate with several dealerships all over the country to find the best deal for your customer. And, if a dealership notices that you are consistently putting together good deals and helping them move inventory, they may even start to actively work with you and send you more attractive deals to offer you customers.
Read more about the benefits of working with an exotic car broker here:
In my book "Exotic Car Facts: A Pundit's Guide to Exotic Cars" we discuss specific strategies and share helpful tips on how you can have your exotic car, and drive it too!
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