We encourage folks to post LH calculator links. It’s not for everybody, though. Some dealers have an inventory with hundreds of cars; might be overkill to require a link for every vehicle they sell.
1 Like
At a minimum, it should be required for brokers. Or every listing should be required to lay out the exact fees by item and dollar amount being collected at signing.
1 Like
There are tons. It just depends on what your interests are and what you’re trying to achieve with points/dollars. I think the learning curve for travel is tougher than leasing, though, since there are way more variables.
2 Likes
If a broker lays out every single number it will make it easy for people to snake them. Broker deals are take it or leave it for the most part. So as long as they disclose your monthly, DAS, term and mileage that should be enough. If you like those turns then take it otherwise do it yourself. But numerous brokers here have mentioned how people go behind their backs to get the car once they have all the info. Now if a broker wants to offer all the additional info that is great but I don’t think it can be required.
3 Likes
As I noted before, I like how @nyclife posts his deals using the LH calculator. He never posts the details that you are concerned about. If he’s figured it out and thrived, I’m sure others can too.
Here’s the thing. While an individual may have the ingredients to make a deal, they may lack the recipe itself.
Sure, one can wing it and wind up with a unicorn deal but most people don’t have the will power to walk away from a mediocre deal due to a nasty little human condition called emotion.
Along w/ calculator links, brokers fees should be spelled out in all Market place ads and the brokers review thread. I’ve seen some brokers fees not specified, then set at $299, then move to $399 and later $499. It might make sense for LH to have requirements around broker fees when allowing brokers to register / post deals.
Lately it seems many ads are posted with no mention of the brokers fee embedded, and you don’t find out what they are until contacting the broker(s) for a particular deal. Some brokers are turning high volume on repeat deals, and in the name of transparency fess shouldn’t change from week to week or deal to deal.
I don’t think any of the members begrudge brokers from making a profit, and many of them do provide a good service, but to see fees double / triple in the course of months, seems excessive IMO.
1 Like
This is good feedback but it’s tough for us to enforce. It certainly helps cause I know a lot of the broker fees have started to climb pretty high (outside of that auto advocate fella who’s since given up on the forum, we’re seeing fees upwards of $500-$600).
1 Like
Would any brokers be interested in answering questions about the process of becoming a broker?
Are you referring to a guy who determines negotiating with a dealer then selling that deal is lucrative, or one that has industry experience, is licensed, can desk a deal without bouncing it off the sales manager each time and decided to go out on his own instead? These are 2 separate things.
The former is easy, but also illegal in most of the country. The latter a little more difficult.
The goal would be to do it the proper way, which would be the latter. Through research it appears a dealer license is required to be a broker in most states, and I assume that’s the case in NJ as well.
If the fee is excessive then don’t use that broker. Pretty easy.
A lot of brokers are getting paid by the dealer so the fee isn’t listed. But I do think it would be worthwhile for them to list either a fee or to say the dealer is paying.
1 Like
Legally it is a pain in the butt. You need a physical llocation with signage that the DMV inspects for CA brokers.
I’m more interested in how one becomes a broker. Sounds like you need a dealer license, then what?
Good point about the physical location part. I forgot about that in my post initially.
Not to mention insurance and a surety bond to protect you in the event something goes wrong. With people being so sue happy anymore, you better remember to cover your ass.
It is very different for each state. You should research the states of interest to you.
uh why? as long as someone is getting a good deal, why does a service provider’s compensation structure matter to you? the way the auto broker industry works is not with “$299-$399 broker fees” for $100k cars, I can promise you that. and i can also promise you that generally, everyone is more or less happy.
5 Likes
Fee of course should be scalable. But a flat fee due at signing from a consumer perspective is preferable.
I agree with you. Charge what the market will bear. But as I’ve said before, there should be a greater charge for posting deals on LH. Charging a fee should also apply to lease transfers. But I digress.
Or no fee at all and let people make money how they can, because it’s not your place to dictate fee vs no fee.
7 Likes