![]() The most common question I get from friends, prospects and even clients is what exactly is a Lease Broker? Anecdotally, the comment comes something like “I have worked with Jane Doe at Anonymous Dealer for years, and gotten good deals on three cars from them. How are you any different?” In this blog post, I will compare and contrast a Broker and Dealer, and address some of the key differentiators. Dealers work for their Firm, and Brokers work for their Client
This is the simplest difference between the services a Broker such as myself provides and that of a Dealer Salesperson. The latter is captive to their firm, the Dealer, and compensated by that Dealer generally based upon the gross profit of a deal. This means that the more you pay over invoice for a vehicle, the higher the Salesperson’s commission. Dealers are also beholden to the restrictions of their Firm. This includes available inventory, allocations for future vehicles and fees. If you read my previous blog post regarding documentation fees, you recognize there can be a huge difference in fees between different dealerships, and this greatly impacts the quality of a deal. Regardless of how deep your relationship with a Dealer Salesperson is, you cannot escape these nuances. On the flip side, a Broker is compensated by their Client when services are engaged and performed. A Broker’s sole duty, then, is advocacy to their Client. There are no loyalties to Dealers or Brands and you as a shopper are not bound to the inventory of a specific Dealer or group of Dealers. A Broker gets you the specific deal you want, not the deal that is best for the Dealer. Brokers cover a broader market than individual Dealers Similar to the point above, when walking into your local Dealer your choices are among their available inventory and the likely limited inventory they are willing and able to conduct ‘Dealer Trades’ on. If you start at your local BMW store, but then decide to look at an Audi, you are now starting the process with another store and another Dealer Salesperson. When employing a Broker, your reach is as far as you are willing to travel or ship the car. Transactions can be completed remotely, allowing you to find the exact vehicle with specs and color combination you want from across the country. Savvy Brokers understand the markets that are most competitive and will yield their Client the best price, while leveraging a multitude of Dealer contacts. They also have cross-functional knowledge of different Brands, allowing an educated discussion of the pros and cons of each. This is especially important given that lease programs change every month for every Brand. Brokers are your ‘Personal Shopper’ This is the best summary I can provide regarding the value of a Broker. They assess your needs, help you find what you want and then negotiate the absolute best deal within your budget and parameters. Ultimately, using a Broker is not for everyone, and there is a cost involved. However, the combination of time savings, removing negotiating from the car buying process and the buyer feeling confident they achieved a good deal creates a strong value proposition for many. To learn more about my specific services, visit the SERVICES PAGE or email me at [email protected]. Thanks for reading.
1 Comment
2/7/2022 08:38:00 pm
This is amazing. Great article so far.
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