Thanks for the discourse here.
The dynamic is interesting.
I work with these guys every day and know their pay structures. The ones that put in the hours, including working from home when they’re “off the clock” do very well. You need to be available when a sale needs to be made in this industry or you risk losing a buyer.
I set my own hours but if I’m not with family I’m working from the time I wake up until go to bed. Many of the sales guys I work with are available to me anytime I text as well. So as I said dedicated and experienced ones do very well. The bottom of the barrel, don’t, like any sales job. It takes time to build up a repeat client list.
I don’t sell luxury cars either. There’s plenty of money to be made in Toyotas and other high volume brands. And when there’s a trade involved they can make $800 or more on a deal. Really just depends on their commission structure and how bad of a deal it is for the customer.
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It’s funny, it works that way in just about all facets of life/careers. “Working off the clock”. I am in the recruiting/talent acquisition profession and ditto to your points above. Being available 24/7 when you are in a field or pay structure of pay per unit or commission, this is how you can make a lot of $$$. People who log off at a set time and respond to inquiries/customers, etc. a day or 2 later with no sense of urgency will fail in those fields and likewise will usually not make any meaningful money.
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As a buyer, it’s all based on how you value your time and your willingness to cultivate relationships - I think trying to hack a deal on your own is important to understand the value that a broker adds
I have tried negotiating deals myself, but the unnecessary stress and hassle to save $500-1,000 is not worth it - Hair restoration is more expensive then broker fees and credit earned where credit is due
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This is correct.
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Just to add something new, dealers don’t like working with brokers because they lose control of the deal and customer. There is a lot of “well the broker said this” or “the broker promised me this”. It is better to have your salesperson keep control of the deal than it is to outsource to someone with different interests.
Plus, a lot of the time a broker wants to be paid by the dealer, and often more than a salesperson would be paid for the same deal, so the dealer isn’t saving money. When I worked at BMW, I would get calls from brokers asking for 10%-12% off plus $500-$1000 for them. We are losing $3k as front-end profit and paying a broker $500-$1000, who in turn is going to collect $500-$1000 from the customer. If a manager wanted to make that same deal with a customer directly, the salesperson would get paid a $200 flat, which helps the salesperson and the manager’s monthly profit. It is just easier to say “Sorry, we don’t work with brokers” and if the customer wants that car, they will find their way to us.
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The brokered leases I have done, the salesperson has the details of the deal which should match what I get from the broker. Usually this relationship assumes that I will not try to re-haggle and they will not try to upsell. In one deal, the finance guy said you were a broker deal so we are just going to sign the paperwork.
So a brokered deal should actually be more controlled in my opinion but I guess that depends on the customer and salesperson.
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Depends on if you’re using a true broker versus someone who sells your phone number to the dealer (and charges you for it)
My dealers prefer to handle and the paperwork/credit apps and it’s just as controlled. So I guess I’m a “phone number seller” but they don’t offer my pricing to the public so there’s the value for my customer. The price I quote is the price the customer gets. In return the dealership becomes the highest selling truck dealer in their region. That gets them more allocation to sell at a profit to local customers. Seems like a good trade off. Managers that understand the big picture work with brokers. They still set the pricing. I don’t negotiate with them to get them to lower pricing unless I see dealers selling for cheaper which is rare.
The odds someone from Kansas is going to call a dealer on the east coast are slim. So these usually aren’t customers they would have had in the first place. Small time dealers don’t like brokers bc they lose customers to them and they can’t compete with bigger dealerships, but that’s how the world works and why they’re getting swallowed by large corporate groups.
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I wouldn’t say you’re a phone number seller for the reasons you laid out. I’m referring more to the fly-by-night porsche “brokers” that popped up out of nowhere who use the porsche car finder then post on here for $1299 fees without ever reaching out to the dealership
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I’m kinda close to having determined a reliable heuristic for attractive CPO PFS leases 
. Hopefully it doesn’t hurt the brokers too badly
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That’s a terrible business model and I had no idea they were doing that here. Seems like something one should be banned for. If I paid a broker fee and I don’t get a vin directly after I would be pissed.
Once fee is paid the car should be secured not sourced.
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Supply is meeting demand at market clearing prices. It just happens during “2 transactions” sort of. There is value for all 3 parties to extract.
Direct from factory then the corporations would likely just raise pricing anyway, bc they can and are profit driven. And none of the deals you see on leasehackr would exist. To get a good deal there has to be the dumb money overpaying so the smart money can get a deal. Dealeshio model is advantageous for anyone on leasehackr 99% of the time.
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Vehicles already in high demand/short supply/adm prone, certainly. Mfgs would love to reap all of that profit.
Vehicles that run in LH circles, would mfgs really want to increase pricing?