Where do lease brokers source inventory?

Hi Hackrs - trying to learn better how lease brokers operate (brokers please dont take offense, just trying to educate myself).

I understand that many dealers (at least luxury car dealers) dont work with lease brokers (most of my local dealers claim to me that they do not), who are the dealers (in general, not spacific dealers) that do and why do they and what inventory do they provide?

I would assume, and might be mistaken, that the dealers who do work with brokers are dealers that must move inventory and are having a hard time doing so on their own - as if not, they would probably prefer to sell in-house and avoid deep discounts that brokers push for.

Would these be dealers in rural (or less active) locations and/or dealers who are sitting on certain inventory specifications that just isnt moving on their lot? Are some dealers providing their full inventory for brokers to sell?

Is it region specific? I see many brokers who can source and ship to S. Florida for instance although not many who have inventory in S. Florida.

Just trying to better understand -

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brokers get their cars from dealers. Some stores are almost 60-70% broker deals.

some dealers chase volume others chase gross.

Most dealers that work with brokers will work with their full inventory. That being said don’t expect a “broker deal” on a Zr1

What’s your end goal here?

Some stores work with brokers and some don’t. Why would you ask a store if they work with brokers or not anyway? They would probably tell no to you even if they work with them. If your neighbor asks you if you want to buy his home would you ask for his realtor information?

Working with brokers doesn’t mean that dealer is not capable of selling cars themselves. Brokers bring extra volume. Also brokers can advertise discounts that dealers can’t. Dealers are tied to strict regulations.

He knows that brokers make money on every deal. If he can find a broker dealer and get the same deal, he skips the broker fee

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Finding a broker dealer is not a big deal. 95% of those dealers won’t give him the same broker pricing anyway.

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Education - thats all. I did not ask, I have a friend who works at a dealership and was trying to get me a car. I told him that I am geting a better deal from a lease broker and will end up going with them. So he started a conversation about brokers.

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Would never try to cheat a broker out of a deal. As a consumer, I obviously look for the best deal although the cars specification plays a roll as well. I will try to aquire a car from my local dealer or a broker - depending on the deal and spec - but I would never try to supervent the broker and go straight to the dealer on the same car. I have used lease brokers in the past for 2 cars and was very happy with the result.

Ooh, no. We see so many posts that say, “A friend (or extended family member) at a dealership worked me on the deal, and I got screwed…”

Lol - I wouldnt doubt that he would screw me - he isnt that good of a friend. Although he was honest in the beginign telliing me that their dealership inflated MF on all deals - no way around it!!

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Vaseline Hml407 GIF by truTV’s Hack My Life

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who cares?

If you add .0003 to every deal but discount the car further IDC how you get to the deal.

Just because a MF is inflated doesn’t necessarily mean that you’re getting screwed or that the deal is bad. One dealer may choose to discount the selling price of the vehicle more but mark up the MF. Another dealer may choose to discount the car less but offer buy rate MF. Sometimes this yields the same overall cost for the customer. You have to look at the totality of the deal to determine if it’s good or not.

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Correct - I just meant he was honest about it, more dealers (from my experience) would not of been.

I dont think the deal he provided is terrible (but have seen better from brokers), he discounted the car 10% (inflated the MF .0007) although i see brokers on LH going up to 12.5% on this car.

I agree - its the bottom line that matters.

A post was split to a new topic: 2024 Ioniq 5 SEL

this happened with me. got a 15.6% discount but MF was max marked

your friend was trying to smoke you. it happens all the time. people who are “friends” w dealer management or ownership very often get smoked on their personal deals because they sort of trust the person getting them the deal, since it’s a personal connection.

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Weird how that works

Brutal but unfortunately is happening.
:face_with_open_eyes_and_hand_over_mouth:

this usually happens when people know salespeople, and the salespeople themselves are not too numbers-savvy. from my experience, about 80% of dealer personnel do not understand how sales / leasing math works, whether by choice or otherwise. so when they get a “deal” for a friend or relative, it’s a “deal” given to them by a higher up.

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