Are most brokers on this forum required to be legally registered in their state?

Hi everyone.

I’ve used brokers in the past on this forum with no issues, but I knew someone else interested in a Xc60 and showed them one of the deals from a broker. They then asked how do I know I’m not being scammed if they request payment to be paid not via a credit card or via PayPal invoice etc? It is a valid concern which I didn’t think of since I’ve seen the major brokers in my tri-state area listed here with no problems posted. In NY you need to be registered and a bond of 100K currently! Is this required before brokers register on the forum?

Every state has different laws. It would be very difficult for the website to enforce them.

No, registered brokers on here are not screened to be legit and/or lawful businesses. Users on here are encouraged to do their own research before conducting any transactions.

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Dealers request brokers licenses, W-9s, proof of bond, and local business licenses before they will let a deal go through so there’s essentially no need for a verification system in this forum.

There are a number of brokers here who (probably) aren’t getting paid by the dealer (however they might be double dipping). Also a number of brokers here aren’t licensed but are still doing deals so either the dealer isn’t checking or they are only getting paid by the customer.

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I’ve never met a broker that doesn’t double dip.

And even if we aren’t collecting a fee we require it. Same at the past few dealerships I’ve been at.

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OP are they only asking to be paid in cash? I

From what I’ve seen and from what I’ve been told from people’s experiences who are not on this forum, the brokers get paid by the dealer which is why Id be hesitant to pay a fee.

Anectodal evidence is always fun.

We get it, you won’t be using any of the brokers here. I’m sure they’re all devastated.

Case closed

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And I said that when? Plenty on here that I’ve encountered that get paid via the dealer if I chose to go that route. Thanks for the assumption Einstein!

Some get paid by the client, some by the dealer and some both. Ok next topic.

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Umkay but I didn’t bring up the topic to begin with :roll_eyes:

Define double dipping for some of us noobs out there.

Sounds like the Broker getting paid by both the client and dealership on a deal.

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Made a mistake it was Venmo.

Depends on structure. Some dealers might operate on a birddog structure and effectively pay the broker a mini with the broker collecting the lions share of their fee from the end consumer.

Is a mini still only $125-200 at most dealers?

Salesman mini is normally between $50-200
Most brokers want $500-1000 per deal

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$500-1000 combined between client and dealer pay or just one?

Just the dealer. Customers sign a broker agreement when they do the deal that states who is paying the customer. Dealer or customer. It has a line for how much the dealer is paying. Most times that line is blank because they don’t want customer to know how much.

Again this isn’t all brokers just a lot of them

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