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BIMMERPOST Universal Forums General Automotive (non-BMW) Talk + Photos/Videos Auto brokers - how does the business work?

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      05-02-2021, 08:37 PM   #1
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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...
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      05-03-2021, 06:23 AM   #2
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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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