[AMA] Im a Luxury Car Broker and Financier - Ask Me Anything

LCollectingCorner on 06/06/2018 - 10:59
Last edited 25/02/2019 - 18:11 by 2 other users

Hey All,
Im a mostly-retired motor vehicle broker with extensive experience in brokering new cars, negotiating and structuring finance.

Im fortunate to have a diverse background from dealer sales, corporate sales, finance, product management, and I am happy to share my knowledge, advise on any deals (this is ozbargain after all!) as im passionate about cars and the industry as a whole.

Ask me anything you like.

im not associated with any brand or broker or store.

EDIT - thanks for the interest and your questions - hope the ozb community is finding it interest. Just a reminder to please check the thread first and see whether the question may have already been answered earlier

Introduce Yourself

closed Comments

    • CollectingCorner on 08/06/2018 - 14:32
      +4

      Hi Dr
      ive always worked on fixed fee based on the final value of the car, unless i am asked to go and meet multiple dealers with the client or travel etc.
      0-75k - $450
      70-150k - $800
      150-300k- $1200
      300k+ - POA

  • causeimbatman on 08/06/2018 - 14:00

    Looking get a top of the line Skoda Superb wagon for the growing family.

    What do you think of the brand in general and what kind of discount should I be aiming for?

    • [Deactivated] on 08/06/2018 - 14:34

      Top of the line Skoda? Isn’t that an oxymoron?

      • causeimbatman on 08/06/2018 - 15:08
        +1

        Not really, Skoda has a line up of cars, and within that line up they have a line up of Superbs.
        I’m looking for the one at the top of the Superb Wagon line up - hence ‘top of the line’.

    • CollectingCorner on 08/06/2018 - 14:34

      Depends on spec and model but high 40s is achievable.
      my sister in law has one - very well appointed car for the money - obviously just be aware of DSG issues - i recommend skodas be bought new or near new rather than 3-4 years old where you really dont know what you're getting

      • BartholemewH on 08/06/2018 - 18:52

        FYI, the superb has a wet clutch 6 speed dsg, which has far fewer issues than the 7 speed dry clutch.

    • buckster on 11/06/2018 - 16:01

      You'll basically be getting a discounted Passat, Skoda as a brand are quite good.

  • Hybroid on 08/06/2018 - 14:07

    Are you the guy people go-to whom can't/hate/don't want to do the negotiating themselves? If so, sound like you've got a business to start up with plenty customers on here already.

    Do new release cars have deals or negotiating margin? I imagine something hot like the new Mustang wouldn't be be below RRP due to demand outstripping supply?

    • CollectingCorner on 08/06/2018 - 14:34

      yes, thats exactly me :) I already have this business so not looking to start one… if i can help some fellow ozbargainers' professionally then great (ive been a long time member of OzB) but thats not my key motivation for doing this.

  • justwii on 08/06/2018 - 15:20

    Did you help importing car model not available in AU yet, e.g. did all the paper work, compliance, regulations checks etc.? Would it be cheaper via a broker or by myself? Considering the research effort one has to throw in. Thanks

    • CollectingCorner on 08/06/2018 - 15:52

      yes i have - would always be cheaper yourself but its only cheaper as you are not paying for your own time… there is A LOT involved

      • justwii on 08/06/2018 - 16:14

        Yes, I know as I have been looking at doing that myself, the paper works are almost there to stop an individual from doing it. I would love to have more info from you, like does going for a broker guarantee import success or no charge?

  • serrin on 08/06/2018 - 15:35
    +1

    Aside from the standard, do your research, don't be antagonistic/(profanity) etc, any general advice when negotiating with dealerships? For us mere mortals who would only go through this process every few years and find it quite painful.

    • CollectingCorner on 08/06/2018 - 15:53
      +7

      why dont you consider just using a broker then (doesnt have to be me) the whole idea is to save you the pain and get a better result for a fee.
      a couple of tips:
      - be prepared to walk away and do it
      - be silent and only say the words you have to (ie dont over talk)
      - dont spend more time in the dealership than you have to
      - dont let them give you the car to take home and drive at your leasure
      - decline all coffees, food etc until after sale

      • redvaldez on 11/06/2018 - 10:45
        • dont let them give you the car to take home and drive at your leasure

        What's the reasoning behind this?

        I ask because I've narrowed down my car hunt to two new cars - either a standard Pajero, or a Pajero Sport. I'm not interested in taking them home as such - rather I'd really like to take them both on a decent (45 min?) test drive back to back - but I don't want to lose too much negotiating power in doing so either.

        • CollectingCorner on 11/06/2018 - 11:01
          +1

          the comment is for when you are ready to buy, not during the selection process - some dealers during negotations are like "here take the car again for the night while you consider our offer, or take it for another drive while we look at your finance etc"

          Id recommend you decouple the car selection process from the actual purchase, and while selecting dont even engage on price discussions with dealers.

        • redvaldez on 13/06/2018 - 08:50

          @altinvestor: Thanks for the tip, much appreciated

  • Cheappy on 08/06/2018 - 15:49

    Hi,
    Whats the best price you reckon you can get on lexus nx300 2WD luxury with standard accessories ?
    Thanks

    • CollectingCorner on 08/06/2018 - 16:06

      Just did pricing for someone from ozb on the same car - approx $55k with sunroof

      • Cheappy on 08/06/2018 - 16:20

        Thanks. Is it possible to get down to 50k without sunroof ?

    • smuggler on 08/06/2018 - 20:48
      -3

      Yuck what a waste. Just get a Camry V6 for $42k and go on a holiday.

  • abuch47 on 08/06/2018 - 16:51

    Hi do you only work with dealers rather than private sales?

    How bout a 2nd hand VF maloo?

    • CollectingCorner on 08/06/2018 - 22:13

      95 percent of what I do is new cars, I also do private but it's purely thr cost of my time rather than fixed price as there are just too many variables.

      Bsdoe I agree to private ejob I want to know what you're looking to pay for the car in question and if I don't feel I can do it I don't take thr job, not worth it for both parties.

  • pformag on 08/06/2018 - 17:24
    +3

    me in my 4K corolla looking at peeps buying 100k cars :)

    • smuggler on 08/06/2018 - 20:49
      +1

      Me in my $32k corolla parked next to all manner of European luxury cars. They're always at service centers while I'm enjoying my car ;)

  • JonnyCookieDough on 08/06/2018 - 17:28

    What is your commission based on? If sale price, then isn't there a clash of interest in negotiating? Same as we have seen in mortgage broking, often people are sold loans beyond their limits only for the broker to shrug and say the banks does the assessment. Interested to see how the finance sector will be shaken up by the RC and whether brokerage as a service will still exist as it does now.

    • CollectingCorner on 08/06/2018 - 17:31
      +1

      Yeah completely agree re mortgage broking. No my model is fixed fee for the outcome. Essentially it's fee for service so there is no conflict. I listed my fees in an earlier post above for total transparency

  • prozerran on 08/06/2018 - 17:44

    Hi OP

    I am looking at the new end of 2018 C300 petrol sedan, metallic paint - base specs. Say if I get it 2019 plated early next year what kind of RRP discount can I expect?

    Thanks

    • CollectingCorner on 08/06/2018 - 22:15

      Too hard to say for early next year as thr facelift is about to drop, not sure what they were doing with price etc but I think 15 percent off rrp should be doable. Will need to assess at the time though

  • Mozz13 on 08/06/2018 - 18:22

    Not gonna lie. The most informative thread I read today. Thanks for sharing!

  • Ekliptix on 08/06/2018 - 18:35

    What would be considered a good price for a Golf R 7.5 or Audi RS3 sedan?

    • CollectingCorner on 08/06/2018 - 22:43

      RS3 is approx low 90s at the moment - there is low stock of these cars - sportsback dealers cannot get enough of but deals can still be done at similar level. high 50s for the Golf R 7.5

  • unfunkable on 08/06/2018 - 18:50

    Hi OP!
    Have you ever worked on the floor? If so :
    Have you ever had people coming in with 100k in cash for example and buying cars on the spot?
    I often hear urban myths of people coming in dressed really bad, they get bad service, so they go off and come back with another branded exxy car to rub it in the sales person face - does this really happen in real life?

    • CollectingCorner on 08/06/2018 - 22:47
      +16

      yeah i have
      - yes i have seen many people buy cars with cash or immediate bank transfer.
      - yes i have seen many people come in who i know have plenty of money but dress how they like to dress, and dealers dont give them a 2nd look as they dont want to "waste" their turn on a lead coming through the door as they assume they cant afford to buy. many just quietly leave and go buy elsewhere, but i have seen a couple come back past and politely let the sales guy know "hey i can afford this car and guess what you didnt sell it to me

      actually the best one was when one ended up buying from the dealer in question, but walked in the 2nd time, spoke to the guy who gave him crap service and asked him who the most junior sales in the dealership was, and then went up to this graduate and said, here take my order for an M5 down please…true story

      • Mitch889 on 10/06/2018 - 16:46
        +2

        Only a fool would judge a person walking into a dealership based on their attire these days (as you noted). The most unlikely person could be a millionaire, and their thongs and shorts won't give it away.

  • Jaff on 08/06/2018 - 19:51

    Hi @altinvestor, looking at entry model Q3 Auto, what is the best we can get ?

    • CollectingCorner on 08/06/2018 - 22:48

      depending on spec and options approx mid 50s is my estimate.

  • OzBLover on 08/06/2018 - 20:29

    Thanks for your time providing this AMA. What do you think the price of the new Tiguan Allspace would be?

    • CollectingCorner on 08/06/2018 - 22:22

      I saw somewhere thr rline allspace will be about 60 on the road. The Lower models should be about high 40s low 50s

  • Maglia Nera on 08/06/2018 - 20:33

    Rather than asking you to get pricing on a car, can you do a 'reverse' type of scenario?

    That is, say I only want to pay $xxx/month in finance/lease payments - can you give me an idea of what cars would fall in that price range

    • CollectingCorner on 08/06/2018 - 22:21

      I could do that, what repayments term and balloon do you want?I can then tell you what that equates to dollar purchases and then you need to figure out what car you want at that price point

  • JDM4LIFE on 08/06/2018 - 21:51

    Hi thanks for the AMA. Whats the best you would say the following three could be had at. If you had to rate them from 1 being best and 3 worst as daily drivers what would you say.
    1. WRX STI
    2. Focus RS
    3. Golf R

    • CollectingCorner on 08/06/2018 - 22:27

      I'd need to look at pricing and unfortunately don't have time to look at each car, dm me if you are interested, but in terms of ranking I'd go Sti, golf R, rs in that order but it's personal preference

  • Livert on 08/06/2018 - 23:13

    What should I be paying for an M4 Pure with no options?

    • CollectingCorner on 08/06/2018 - 23:15

      122-125k - just did one recently

      • Livert on 08/06/2018 - 23:16

        Wow. Might pm you in a few months. Thanks.

        • [Deactivated] on 11/06/2018 - 01:39

          You can get them much cheaper than that. There is a thread over at whirlpool and multiple people have picked them up for just over $100k. BMW recently dropped the drive away price to $119k, so you'd be much better off bargaining yourself if the broker can only do $122-125k.

        • CollectingCorner on 11/06/2018 - 08:09
          +1

          @Burnertoasty: HI i think you are referring to the M3 pure, not the m4. the m3 pure is the stripped out version of the M3. yes there is also the m4 pure, at $129k D/A

          these are not the same as the m4/M4 competition which is what i quoted (as the normal M3 and M4 are being dropped, there will only be pure and competition models

          Lastly, even the M3 pure is not available at 100k - it has never been sold at this price, and if it were i could sell 10 per day for probably 1 month straight. The cheapest M3 pure will go for is 110-112k

        • [Deactivated] on 11/06/2018 - 10:48

          @altinvestor: Go check the Whirlpool thread, multiple people have gotten $105k.

        • CollectingCorner on 11/06/2018 - 11:03

          @Burnertoasty: we must be looking at different things - cant see anyone that has paid that for an M4 - anyway lets leave it there, if they have they have done better than ive been able to get for clients…

        • [Deactivated] on 11/06/2018 - 11:11

          @altinvestor: Yeah, they are talking about the M3 pure. Sorry for the cofusion above. It with such generous discounts available on the M3 pure, you’d be crazy to buy the m4. It’s probably the best value for money car on the market today. BMW have been offering some nuts discounts recently. I’ve seen some 7 series offered for 5 series money, and the X5 is always up for huge discounts.

        • CollectingCorner on 11/06/2018 - 11:18

          @Burnertoasty: yes, Having had one (a competition) for the last 11 months, i can attest to that - it is a stupidly capable car for the money - i know the words 110k and value for money doesn't compute for many, but if you are a car enthusiast and value performance, refinement etc, then 110k is a comparable bargain however you look at it - this was supercar level performance 8-10 years ago, and supercars were certainly not anywhere near this price point.

  • Amaris on 08/06/2018 - 23:41

    Hey. Thanks for starting this post…

    If I were to ask you to get me a BMW X3 30i with metallic paint, Harman Kardon and adaptive dampers or the 30d with the same what would it cost me?

    Also, do you get paid by the dealership sort of like a mortgage broker getting paid by the bank or do you charge the buyer?

    Cheers

    • CollectingCorner on 08/06/2018 - 23:48

      i expect x3 30i with those options will be approx low to mid 80s, 30d around 90k but would need to confirm. we would need to see whats available with those options in stock.

      im getting paid buy you, nobody else. its completely transparent so nothing like mortgage brokers!
      i take 50% of fee upfront and remaining 50% on contract.

      • Amaris on 09/06/2018 - 11:31

        What is your fee? Before the initial 50% payment do you agree on a price you could achieve?

        • CollectingCorner on 09/06/2018 - 14:47
          +1

          Look at previous posts for fee structure. Yes 50 percent upfront after initial discussion of approx price. If people are unrealistic I just don't take on the job…not worth it for either party

  • CalmLemons on 08/06/2018 - 23:45

    Here's one for you:

    My wife is obsessed with the next car being a $170k Tesla X. For $170k I'd rather get a Range Rover. TBH, I don't like to spend more than $100k on vehicles, and would suffice with just a Subaru Outback or a VW Tiguan to get around, even a plain white Toyota Camry.

    I've been trying to find an alternative vehicle with enough prestige around the $150k mark to combat the argument of it's Tesla, it's got a big screen and has folding doors.

    The only thing that comes close is the Levant purely because of the badge.

    • CollectingCorner on 08/06/2018 - 23:51
      +1

      Hmm sounds like you might have a battle on your hands - telsarati are very hard to convince otherwise - i dont try anymore…!

      does it have to be an SUV?

      • CalmLemons on 08/06/2018 - 23:52

        5-7 seater, adults kids large music equipment.

        • CollectingCorner on 08/06/2018 - 23:55
          +1

          gle63
          x5m/x6m
          jaguar f pace R
          Cayenne GTS

    • [Deactivated] on 11/06/2018 - 01:42

      Drive the Tesla. That's all the convincing you'll need. No discounts on Telsa though. You wont be able to get a RR for $170k, but you can get a nice Sport HSE for less than $150k. If you're planning on going offroad, its a better all around car. If you're not, the Tesla is a better road car.

      • Ti-au on 11/06/2018 - 16:46

        How many people really go offroad?

  • CollectingCorner on 08/06/2018 - 23:48

    duplicate - delete

  • salekhard on 09/06/2018 - 00:26

    What could you do for a GLC43 or C43? Thanks

    • CollectingCorner on 09/06/2018 - 10:44
      +1

      C43 at low 100s, GLC unsure - very little stock - the last one i did was an order car as there was nothing around

  • Weavlz on 09/06/2018 - 00:57
    +1

    Thank you for this AMA. I've honestly learnt a lot and am very interested in your responses.

    When trading in your car towards a new or used vehicle, would a broker be able to assist in this area? I'm not sure exactly how trade-ins are taken off the RRP so I guess my question is how do you get the best price considering a trade in - or does it not really factor in for much?

    • CollectingCorner on 09/06/2018 - 10:46
      +3

      yes a broker can help as its all a negotiation but often with trade ins i put it out to wholesalers to bid on and either give the car to them or to the dealer we are buying the new car from if he can better that price.

      the only thing that matters when it comes to buying with a trade in is what the changeover figure is.
      same goes for finance, the only thing that matters is the monthly repayment you are paying plus any balloon, dont get caught up in interest rate figures etc, assess everything by monthly amount and balloon.

  • McBanny on 09/06/2018 - 10:48

    Hi~
    Nice AMA, you also got me interested.

    By the sound of it you are in the eastern state. So do you perdonately deal with customers from the east coast (I'm in WA)?

    What I have notice is the cars sold at Eastern states are generally cheaper with more varieties and quantities either first hand or 2nd hand.

    I wish to ask if it's worth (or do you) to look into deals across the country? Because there are also delivery cost if we choose not to drive it over plus it's a long drive too!
    At the moment I'm considering top range parado(Kakadu) or land cruiser. Then plug in hybrid SUV in next two years (or maybe Tesla haha)

    Another question is have you ever come across a dealer that just won't give you any discount so the customer have to pay the full amount? In this case do you still charge them service fee?

    Thanks in advance!

    • CollectingCorner on 09/06/2018 - 10:53

      Hi mate
      yes the market is more competitive in eastern seaboard. im in vic and deal predominately with dealers here due to relationships.
      there is less competition in WA so its difficult to negotiate at all over there, i have many WA clients who have bought from me and we have arranged freight from the purchasing dealership to transport the car so you know you are protected as its direct from the dealership.

      I have had those situations but to be honest it primarily happens on exotic cars, and i have different arrangements for those as sometimes clients are happy to pay MORE than the RRP in order to secure one. For your situation id be more than happy to refund the service fee if i only achieved RRP. I only take 50% of my fee upfront anyway, with 50% on written contract of sale from the dealer.

      DM me if you want help on the kakadu

      • McBanny on 03/10/2018 - 01:25

        Hey hey,

        Didn't notice I didn't reply to you. Sorry about that.

        Was looking at SUV just now and reminds me of you. I found Lexus is doing 1.99% fiance at the moment.

        Is it worth getting their fiance? And would there be any room for bargain if I do take on 1.99%?

        Was looking at latest RX450hl sports which is around 125k drive away (couldn't find a good deal on Prado yet so looking at family car instead atm).

        Consider me saving up for a house (for investment) and the interest rate of house be around 4%, 1.99% offer sounds really good!

  • avocado on 09/06/2018 - 11:20

    How do you deal with people that engage your service, get your price and just shop it around to other dealers to match or beat? Seems like you could do all the legwork and they can just go down the road and negotiate a price-match to avoid your fee?

    • CollectingCorner on 09/06/2018 - 14:44
      +1

      That is one of the reasons I charge 50 percent of the fee upfront. You also don't get a final Cotract of sale until full payment where I then put you in touch with the dealers to finalise, handle any finance, trade ins, organise collection etc. It still happens though but many dealers won't just give them the price I have offered anyway so I don't lose many at all that way.

  • illusion99 on 09/06/2018 - 12:10

    Hey, saw your AMA and have to say it's been one of the most informative.

    I've been looking around for a Audi A5 Sportback TFSI FWD with Technik Package, Parking Assist and Sunroof in white.
    Approximately what price could you get for that?

    Thanks

    • CollectingCorner on 10/06/2018 - 10:40

      Hi, approx 75k

    • [Deactivated] on 11/06/2018 - 01:43

      You do not want a FWD Audi. Might as well buy a Passat if you're going to cheap out like that.

  • Pantagonist on 09/06/2018 - 13:17
    -2

    Two 1994 Nissan Navaras (both D21 model 4x2 with manual transmission). One registered with 387,000km on the odometer, the other unregistered with 200,000km. How much should I pay for both as a package?

    • CollectingCorner on 09/06/2018 - 14:45

      Can't help with used cars I'm afraid, don't know the market.

      • Pantagonist on 11/06/2018 - 06:57

        No worries, thanks anyway. I ended up paying $1000.

  • bargainervic on 09/06/2018 - 17:29

    Can you achieve 15% on mazda CX-9 also. Have you had lot of deals in mazda also?

    • CollectingCorner on 09/06/2018 - 17:31

      15% would be a stretch, i dont think its achievable no. i do quite a few mazdas, mainly CXs

      • bargainervic on 09/06/2018 - 17:37
        +1

        What price you think would be achievable for CX-9 and % discount.

        • CollectingCorner on 10/06/2018 - 10:15

          cx9 azami achievable in very high 50s. about 13%

      • DeadlySaber on 09/06/2018 - 19:02
        +1

        Hi alinvestor, I'm also looking for a 2017 or 2018 CX-9 Azami AWD, preferred Machine Gray or Black. I'm based in Sydney but willing to go interstate. What do you think the best price I can get?

  • iBargain on 09/06/2018 - 18:51

    Hi,

    Thank you for doing this AMA. Very informative. Interested in Audi Q7 or a Merc V250D. What price would I be looking without additional options.

    • iBargain on 09/06/2018 - 20:49

      Q7 is the base model Diesel

      • CollectingCorner on 10/06/2018 - 10:39

        approx 15% off the q7s RRP, the V250d i have more specifics as i just did one recently, trying to find it and ill come back to you

        • iBargain on 10/06/2018 - 14:22

          Thank you for looking into my enqueries. Will wait for your response for the v250

    • TimeWaster on 10/06/2018 - 18:43

      Not OP, but I can confirm that someone I know got a Q7 specced at ~$170k for about $140k on road during their "Open Haus" sales event around this time (so about 17% off)

      Dealers probably don't like it, but comparing to similar "Dealer New" cars on CarSales tends to help negotiations somewhat

  • Jetkuma on 09/06/2018 - 18:53
    +2

    Hi Thank you very much for your knowledge on cars! I am just wondering how much can i bargain Kia Stinger GT to? Currently i see demonstrator around 56k and new is 65k. Where should I start to benchmark the price range offer?

    • CollectingCorner on 10/06/2018 - 08:18

      hi, 60k is a good result - ive done one recently.

  • Save Medicare on 09/06/2018 - 19:20
    -1

    What kind of % discount would you (or I) be able to expect from dealer used car? Ie 2015 mazda mx5 but in general too

    • CollectingCorner on 10/06/2018 - 08:17

      unfortunately there is no set rule - each used car is different - i dont have any experience with used mx5s so cant offer any advice on this one sorry.

  • djmm on 09/06/2018 - 19:54

    How much you could get a BMW M140i with no option?

    • CollectingCorner on 09/06/2018 - 20:04
      +1

      Low 60s

    • smuggler on 10/06/2018 - 10:31

      That car blows.

      Get a VW GTi or R Hatch

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