An Auto Brokers Blog

What really happens…

How would it work?

There’s two ways to deal with cars, you can be a dealer or a broker. What the difference you ask?

A dealer purchases cars from auction, other dealers or customers (trade-ins) and resells them. This includes everyone from your local chevy dealership to Uncle Bob Crazy Car Mart down on the corner of dontwannabethere and runlikehell.

A broker doesn’t actually purchase cars, he arranges deals between the customer and the dealer. Now why would someone want to do that? Some people REALLY hate car dealers due to the haggling, pushy salespeople and wide ties. This leaves an opening for a professional broker to step in and for a fee, negotiate a good deal for the end user. The broker never owns the car and the customer buys directly from the dealer, though many times it can be arranged so that the customer never sets foot on a dealers lot and never speaks to them on the phone. Everyone wins in this situation. The customer gets a good deal, the dealer moves a unit with little to no hassle, and the broker collects a fee.

Unfortunately, neither of those fits perfectly with what I’m thinking about.

I believe there’s a spot for a very low volume dealer in used cars. A person who picks out good quality cars at auction, gets any needed maintenance handled, makes sure the car is in good shape for it’s age then sells it directly to a customer. Research shows a good markup can be had by doing this, and it’s very little risk as you can always dump the car back to auction if needed with a minimal loss.

Still needs thought and more research.

April 7, 2009 - Posted by | startup | , , ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.