What does a broker do and related information

Off-Ramp
1

I’m a little confused here. Are you a dealer or broker?

2

He is a broker

3

So why would I broker say “we are sold out”? Aren’t they supposed to act on behalf of the client to find them the car and price they want?

4

Most brokers have a number of dealers that they work with that have pre-arranged discount amounts on. Usually, those discounts go beyond what that dealer would offer to someone off the street. In this case, the dealers that Clutch has a relationship with are sold out of 22s, so there are none available for him to offer.

5

It’s a little different here. Most of the brokers on LH work w/ a few dealers representing several different brands. If the specific Mercedes dealership(s) that Clutch works with are sold out of 2022’s then it would have to be a 2023.

6

I see so in this instance, he’s not really a broker more of a free lance salesman for multiple dealerships.

7

Yeah. I learn something everyday. He’s essentially a salesman for multiple dealerships. I’d have to believe that his allegiance would be towards the dealerships not me as a client if I were to use him.

8

The difference here is that the broker is paid by the client rather than the dealer (there are some that have the opposite relationship)

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9

You can believe what you’d like of course, and maybe a broker isn’t for you, but in this instance quite a few folks would disagree with you.

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10

“…a free lance salesman for multiple dealerships.”

You basically just described a broker. He is not a employee of any dealership. Clutch brokers deals between his clients and multiple dealerships for a fee.

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11

I think what you are searching for is similar to CarEdge. They will negotiate on your behalf with any dealership. Ex: You’ll receive a pleasant $500 off a Mazda.

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12

Here are a few examples

  1. You want a $1500 per month EQS 580. He’s going to take on that task.
    You pay him $700, he’s going to find you one.

  2. You want a $800 per month EQS 580 and pay him a $10k finders fee, will probably take the job. Will likely give some of that money to dealer to bring price down for you

  3. You want a $800 per month EQS 580 for his $699 fee.
    He’s not going to take on that challenge. He can probably sell multiple EQS’ at 12-14-% off all day long.
    Finding one for over 24% off is not worth his time
    Brokers rarely post unicorns

3 Likes
13

Seems like a conflict of interest

14

Well it doesn’t sound like this is a broker. When I use a real estate broker they negotiate with my best interests they aren’t also representing the seller.

15

Yes but to me a broker would be representing the buyer OR the seller.

16

I think in this case, he’s choosing to not represent you?
So there is no conflict of interest

4 Likes
17

It sounds like you’re using a very narrow, specific definition of a broker that only reflects a certain market.

18

He is not getting compensated by the dealer. So how is there a conflict of interest?

1 Like
19

I think I’m probably just better doing it myself.

20

Right so it’s not different than someone that works at the dealership. Just another mouth to feed.