Experiences with Autobrokers

I was wondering if anyone has had positive experiences with Autobrokers? I am looking to buy a Kia Sportage Si and was offered $26,990 by a dealership for a brand new car 2 months ago. This is a sharp price, but I thought a broker might be able to do better. There are several advertised on CarSales at this price, so I don't think it was a once off from that dealership.

Despite the brokers long story about buying in bulk t get a good deal, all I get now is 3 calls a day offering me a "great deal" that is about $5K more than the offer I got from the dealership. I knew the dealer's margins on this car are probably very tight, but this is pretty ridiculous. Why would anyone use a broker if their prices are absolutely ridiculous?

Comments

  • As long as dumb and lazy people exist, so will autobrokers.
    Emailing a bulk amount of dealers asking for their best price on a certin vehicle is far fro rocket science.

  • -1

    Car salesperson here

    People use brokers because they can't negotiate, or don't want to spend the time negotiating. Simple

    Brokers charge you a fee, and then will charge the dealership a fee. The fee they charge the dealership is generally around $500, but can be higher. Obviously this comes off the dealership's best price that you could otherwise put in your pocket.

    Dealerships hate them because dealerships thrive off rapport. Building rapport over a purchase means a better buying experience for the customer. You build relationships so if you ever have an issue, we might be more inclined to go to bat for you. When a broker is involved it's all just business. Broker knows nothing about the car itself, so from the sales process up to delivery you won't get the same service as you would if you personally bought it.

    It's a major purchase for anyone, be involved directly, don't use a middle-man as it's only costing you, the customer, extra money.

    (now, onto the one and only excuse I've heard to defend brokers - when you live miles from the nearest dealership. We'll hear from that side soon enough 😂)

    • As a car salesman, would you recommend buying the week between Xmas and New year's or wait until January?

      • Yeah I'd recommend that week if you know exactly what you want and are flexible on colour if need be.

        Personally I'll be planning to be busy. Not to make money but to make numbers :)

      • +1

        Car salesperson here

        Nek minnit

        As a car salesman

        Car salesperson… it’s a well known fact that Spack identifies as being heli-sexual and uses the “person” pro-noun… :D

        And always go at end of month when all the sales staff are cutting each other’s throats to make sales targets.

  • I have used a broker for a Subaru and a jeep when the local dealers weren't going to play ball. I got the best price I could locally, and the broker beat it. That is the way to do it, get a good price and see if they can beat it by enough to make you swap. Also, brokers can sometimes get you a better trade-in.
    In my case the Subaru dealers within 50km were all part of the same company so you had to go some way to get any price variation.

    Oh, and as for rapport with customers, going to VW dealerships was awful. Other brands may be better, but Jeep usually wasn't.

    A broker is a care salesman that doesn't work for a dealer. Treat them like that, they are not your friend. Get the best price you can then ask them to beat it if they can. If they can't you probably have a good deal.

  • I was curious as well about brokers.
    I managed to negotiate a price and then asked a broker for their best price.
    They couldn't beat it so I guess I did a good job.
    I guess it could be different if you were region locked.

  • A lot of dealers won't give you a price unless you commit to buying from them that day. It makes it hard to know how much wiggle room there is which works in their favour. I get that they don't what 'their price' shopped around, and there are time wasters, but they often put people off them all together with that attitude. I changed from the local dealer of a car I was looking at all together because of an arrogant salesperson. Wouldn't even give me a price. Other dealer on the other side of town was much more friendly and open and gave them the sale. I get why people use brokers.

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