Brokers get paid by the dealership as well?

[endo1234]

Just learned of this. Always thought the broker just got paid by the customer. Interesting. I wonder what the average paid is. And yea I’m sure not all dealers pay, but damn not a bad gig being a broker!

[mattevan]

Different brokers have different revenue stream models. Some (rarely, though, I’d posit) have both streams.

The broker fee model helps many of the brokers you see here on this forum, some of whom lack brokering licenses (requirements vary by state), generate revenue because it could be hard for them to collect income from a dealership.

[wam22]

Some do, but I bet most don’t. I have had brokers call my dealer and they want a referral fee (no thanks). I had one who wanted to bake his fee into the lease so he could advertise a $0 broker fee, but it was really $750 baked into the selling price.

[endo1234]

@ethanrs didn’t you say brokers get 1k on the back end from dealers?

[endo1234]

Why not? Assuming they brought you a decent deal?

[wam22]

I have never had a broker bring me a decent deal.

[ethanrs]

They can but not if they’re unlicensed.

Many on here aren’t licensed, just don’t tell the IRS of DMV

[Kctham18]

Blast from the past… not specifically about getting paid, but a little on how brokers work with dealers:

Question about CA Brokerage

It should also be noted the relationships brokers have with dealers is very different than what you have done so far. There are dealers that refuse to work with brokers. There are dealers that purposely give brokers crappy quotes to make them irrelevant. And you don’t grind a dealer like you do when you’re getting a personal car, they’ll shut you down fast. Brokering is more like an ongoing relationship with key broker-friendly sales people / managers and working together to find an aggressive…

[Ursus]

@ethanrs

Many on here aren’t licensed, just don’t tell the IRS of DMV

What does licensing have to do with the IRS? They can be unlicensed and have an LLC, for example.

[ethanrs]

I know several on here do not. You really think 100% of the Zelle and PayPal F&F money is getting reported?

[Ursus]

No. I’m saying that lack of license does not equal not paying taxes.

[ethanrs]

Ok, the DMV and/or IRS depending on the broker.

[mattevan]

@ethanrs

Many on here aren’t licensed, just don’t tell the IRS of DMV

Come on, selling 150 cars a year is totally a “hobby”!

[mattevan]

If there is ever a claim brought against someone moving metal on this here site, an interesting question would be the liability of the advertising platform… I’m sure LH solves for this in their t&c’s and the generic platform argument has increasing liability-shield precedent, but anything is possible.

[MICHAELSD01]

At the end of the day if a broker is getting paid by the dealer, it’s coming out of the overall deal.

[Electric]

If you value your freedom and have more to lose than your average Joe you bet it does!

[mp11477]

@MICHAELSD01

At the end of the day if a broker is getting paid by the dealer, it’s coming out of the overall deal.

You could argue regardless of how a broker is being paid, it’s coming out of the overall deal. Whether client is paying for it baked into the deal, or outside of the deal, he’s paying for it one way or another.