How do Car Brokers Work?
Updated: Thursday, 9 January 2020
Working with car dealers can be tough. Many are unscrupulous. It’s not the way we operate – but it is the way that some car dealers choose to do business. They make their that way, even if their customers never come back. We have been working in the motor and financial industry for many years, and we have worked with plenty of car dealers in that time. Needless to say, we’ve met our fair share of unscrupulous characters and have worked with people who didn’t hold the same values as us. That’s not to say that we worked with them for very long – once we realised who we were dealing with, we got out of there, pronto! This is a short blog which explains how do car brokers work, and how working with a car broker can help you to get a great deal – while saving time and money on buying a used car.
How do auto brokers work?
Many of us at eCarz have a history of working in dealerships. And many of us left our dealership roles because we had reached a point where to be very frank; we hated what we were doing and how we were encouraged to operate. Going for maximum sales no matter the outcome, and trying to get the best possible price. Doing business in this way did not sit well with us, so we decided to leave the industry and start something different that made us feel more comfortable about what we do. That was where the idea for eCarz came from; from frustration at not being satisfied with the work we were doing, and a recognition that we could do better for our customers and clients.
Car brokerage is about working as your intermediary, and sourcing cars for clients based on their exacting specifications. We now haggle with car dealers and private buyers trying to secure a great price for you; not to mention a great car as well.
It’s important to point out here that not all dealers are looking to do the wrong thing by their clients. Plenty of car dealers are doing the right thing by their clients, but the industry as a whole has been tarnished by the actions of the few. This article is just a way for us to explain how car brokers work, and then explain why we operate the way we do!
So the question is, who are the good dealers?
We would rather you don’t have to run the risk of finding out! When you work with us you don’t have to deal with car dealers ever again. We do all the work on your behalf and then present options to you for your approval. No more dealership visits, no more sales haggling, and no more wondering if you have just been ripped off.
We wanted to be able to help our clients and to be able to bring value to you. So when establishing the eCarz brand, we looked at: “How can we do what we know while giving everyone the best and fairest outcome for the entire transaction? Whether they are buying a car, selling a car or need car finance”. So, here’s how it car brokerage with eCarz works.
How do Car Brokers Work – Finding your car
When looking to buy a car, the first step is that you tell us what you are after and we will go to our trusted dealer network and get a minimum of three prices.
We generally try to utilise dealers that at the very least are within the same state.
Please Note: We have used interstate dealers at times as many have had excess stock and were willing to offer our clients some super competitive prices, or had some strong bonuses on their cars because they were purchased or registered in a certain period.
We can help with just about any make or model: VW, Subaru, Ford, Toyota, Mazda, Holden, Honda, Isuzu, Hyundai, Kia, etc, or if you are looking at Prestige or European, we can do that too – we have excellent contacts in Mercedes, BMW, Land Rover, Jaguar, Audi, and Porsche, to name a few.
We save you money. Here’s how:
- We leverage our relationships that we have developed over many years in the industry and make it easy for you to benefit from our experience.
- We have buying power: we are sourcing multiple vehicles per month, whereas a consumer you will generally source one every 3-5 years.
- We know what’s coming in, going out.
- We can leverage stock holding knowledge, and due to relationships, we also know who is holding too much stock, who needs what stock and how to source it.
How do Car Brokers Work – Selling your car
When it comes to selling your car there are a couple of options that we offer our clients — and it depends on urgency of course. We usually get three prices from industry buyers and then we present you with the best.
Simple. The price we offer you can be anywhere from $500-$5,000 better than trade-ins.
We also offer our clients the service of selling their car on their behalf – it’s like having a real estate agent sell your house for you.
Why would someone do that? Well several reasons, including:
- Industry Knowledge
- Dealing with prospective buyers and experience in negotiation
- Time saving
Many of our clients, like most of us, are simply busy. By selling their car for them as a dealer, it allows them to get a dealer price, not a wholesale price, which can often be thousands of dollars more.
Why can we get more this way than you selling via private sale?
Simple: We have access to data that is available on the market, to see what is selling, average turn around, pricing, etc. We can also offer clients a warranty, finance and trade-ins.
We usually get our clients an average of over $3,000 net to them after all costs.
When arranging car finance, most dealers will have access to two to four lenders that they deal with day to day. Finance is an important part of a dealers’ day to day business for various reasons. However, the best offer that you will receive, isn’t necessarily the best offer for you.Arranging finance
We have over 30 lenders – most of the majors including CBA, Westpac, ANZ, Macquarie, St George, Capital Finance, Liberty, AFS, RACQ and the list goes on.
- We can service all clientsfrom full time employed to casual – we can help self-employed people, even if you only just got into business.
- We can help our customer buy just about anythingfrom a car, boat, truck, equipment, machinery, caravans, all the way to personal loans, and home loans.
We work for you – not the bank or lender. So the offer we give you is what is best for you!
We are more than happy for you to compare what we offer you and if we do get beaten for any reason, please let us know, maybe we may have missed a small piece of information that could help us get you that slightly better deal.
Buying your car, selling your car and finance
We generally save our customers approximately 10% -15% of the price of a new car. We get them approximately 10% – 20% more for their trade in and save them anywhere from $1,000 to $5,000 on the finance.
At eCarz car brokers, we have saved our clients an average of $5,122 per complete transaction.
So why do it all yourself, when you can engage experienced experts to do it for you? Contact us to save thousands and get your weekends back or if you have any more questions about how do auto brokers work. Call eCarz today on 1300 378 387.