Brokering a new car is very simple, but there are a few things you need to know. Many think there is a tremendous amount of mark-up in new cars today. Many years ago that was true, but in today’s market the profit margins are shrinking to incredibly small amounts. In some cases the margin between MSRP or Manufactures Suggested Retail Price, and dealer invoice is as small as $300 to $400! This is because the different manufactures are competing fiercely against one another. They have found they can compete easier by decreasing the profit margin to the dealer by raising the invoice price and holding the MSRP steady. In this way, the manufacturer can either lower the price from one year to the next or hold the price steady. Of course the new car franchise owners aren’t happy about the situation, yet they have very little say in the matter.
We charge $500.00 to broker a new car. All you have to do is give us a call and we do the rest. We do the shopping, find the best price, and set up the delivery. You merely walk into the dealership, sign papers and leave. No hassle. We should mention if you are one who likes to shop and negotiate, a broker probably isn’t for you. This is because, as mentioned earlier, some profit margins are so low that we may not be able to save you much in the way of dollars and cents. Our service is best utilized by someone who doesn’t like to shop, negotiate or deal with the dealer. One phone call does it all. We take care of the rest. We request that you contact us when you are ready to actually purchase a vehicle, not when you are in the shopping stages. We ask this because prices are changing on a regular basis due to availability and current demand on a given vehicle. The price we get one day may be different from a price we get later. It takes a lot of time and effort researching out the best price, which we don’t mind doing when it is followed by a sale.
Brokering a pre-owned vehicle is extremely simple. We will need the details of what you want up front. This includes the year, make, model, options, mileage, colors, and overall condition you are expecting. Next, we will need the amount you have budgeted for the purchase. Either in the cash amount or the payment you are expecting to make on a monthly basis. If making payments, we will also need the amount of down payment you are expecting to put down on the vehicle. You can either use a bank or credit union of your choice, or we can assist in setting up a loan for you. We are recognized by all the credit unions and banks in the area. All they will expect from you is a copy of the purchase order, which we will generate, and they will draft a check off of that.
After getting the above information, we will determine if your budget is realistic. Many come to us and give a budget that’s unrealistic. If this is the case, we will notify you and determine whether to increase the budget or lower your expectations for what you want. For example, order the same vehicle, but perhaps a year or two older, or perhaps one with higher mileage. Once we are on board with budget, we will proceed to find the desired vehicle. We search for your vehicle through various means. Sometimes we will have what you want in stock. If not, we begin searching the local dealer auto auctions. There are three in the area, which has an active inventory of approximately two thousand vehicles a week available for purchase. If we can’t find one locally, we will expand our search nationwide, which is usually the most successful. When we find your vehicle you have the option of having the vehicle being professionally inspected at an additional cost. The two inspections offered are a frame inspection and a mechanical inspection. The frame inspection ensures you that the vehicle has never been frame damaged. This means the structural integrity of the vehicle has never been compromised and repaired. The mechanical inspection checks the engine, transmission, and four wheel drive assembly, if applicable.
These inspections are performed after we successfully secure the vehicle through the bidding process at auction. If the vehicle doesn’t pass either of these inspections, we give the vehicle back and are not obligated to purchase it. If it does pass the inspection or you decide not to have the vehicle inspected we are obligated to purchase it. When purchasing at auction, we will not go over your budget. However, if the car comes in under budget, we will pass the savings on to you. When discussing your budget, say your budget is $15,000.00 and let’s say we get the vehicle to you for $14,800.00, this means; that is what you will pay for the vehicle landed at my office. That price will include all shipping charges and my fee.
Additional charges would be for the inspections, tax, license, and a $150.00 document fee. Other additional fees would be for any reconditioning you may want to have done to the vehicle before you pick it up. Examples of this may be, having the car professionally detailed, or perhaps it needs new tires and you would like us to take care of that for you. One final additional cost would be for an extended service contract, if that is something you would like for additional protection. We do not disclose our fee for purchasing the vehicle, for the simple reason it adds confusion to the transaction. Our prices and vehicles speak for themselves. As a general rule; if you go to an auto dealership and engage in lengthy negotiations on a particular vehicle, the same vehicle through us will be a minimum of $1,000.00 less and in many cases the savings are significantly more.