Do car brokers get you a better price?

[darkfriend]

Hi all,

Just curious to know if people have had any experience with car brokers? Do they get you a better deal if you know what you're after? I'm thinking of upgrading to a GTI and I am not the best when it comes to negotiating for price.

Any commments would be welcome

[wai]

They used to be able to get you better prices, but with the economic conditions at the moment, you should be able to get as good a deal.

Points to note:

Ask for the drive-away "kickback" from the insurer. This can be a few thousand dollars.

Check to see if you have amy membership of a group or association that might get you a discount off the base price and dealer delivery charge. Again, this can be over 10%.

Don't fall for the "good-cop-bad-cop" routine. Do your research on things like accessories and know what the standard prices are. If dealing with more than one sales rep, make sure that you can see both at the same time.

If trading in, don't accept the mininum value. Again, do your research on what your car should be worth. Remember to include the accessories you have fitted when setting what you want as a trade in.

Don't go during sales. Dealers have queues of buyers so discounts are minimal. The best month is just after a sale when there are no buyers and the sales rep has to make a sale to get paid. Remember, you have the money and would like to buy a car, whereas the dealer has the car and MUST sell to avoid paying finance charges.

Work out what you MUST have and what you would LIKE to have. Be prepared to compromise on what you would LIKE to have. The dealer has access to what the stocks are including colour, accessories and build year.

Make sure you specify the BUILD YEAR and the COMPLIANCE YEAR and have this as a MUST have.

[SChan]

Hi all,

Just curious to know if people have had any experience with car brokers? Do they get you a better deal if you know what you're after? I'm thinking of upgrading to a GTI and I am not the best when it comes to negotiating for price.

Any commments would be welcome

The best deal I got was from a broker in Sydney. Let me know if want any contact details.

Cheers,

[warped_foobie]

I went through a broker, and got a better deal than I was able to source. Between getting more for my trade and a larger discount on the car - I was about 4k ahead compared to doing it on my own.

Would be worth you going through a broker as they would be able to deal with dealers in eastern australia (I noticed you are in WA...) and get you a better deal by sticking a car on a truck, rather than pay the inflated price a WA dealer would probably ask for.

PM me if you want the name of the broker. They were pretty good to deal with.

Chris

[GoldCoastVolkswagen]

I went through a broker, and got a better deal than I was able to source. Between getting more for my trade and a larger discount on the car - I was about 4k ahead compared to doing it on my own.

Would be worth you going through a broker as they would be able to deal with dealers in eastern australia (I noticed you are in WA...) and get you a better deal by sticking a car on a truck, rather than pay the inflated price a WA dealer would probably ask for.

PM me if you want the name of the broker. They were pretty good to deal with.

Chris

Hi all,

From a dealers perspective, you need to understand that brokers actually use the dealers to quote for you anyhow. Not only that, you are actually paying in excess of $550 for the brokerage service. So don't forget, when using them, this is built in to the price you are paying. To me, that says that you should be able to source the price $550 better than they can. Generally the people who use brokers, are people who are actually too busy to go out shopping for themselves (doctors etc), hence the convenience of using a broker, and in this instance, they are very handy and do a great job. The reason brokers seem like they get better prices, is that they use certain dealers regularly and in return the dealer gives them a consistant discount, but regardless of this, it ALWAYS comes down to availability and also the current market.. So I am certainly not against the brokers in any way, it would be crazy of me to do so. However, by using them, you don't have the flexibility of finding a 'bargain' on a particular car that a dealer may have in stock. Nor do you get to touch and feel the cars or build a relationship with the dealer you are buying from. As you will read in many of my customers posts, we actually offer a full service to our customers, before, during and after they purchase a car, and therefore if you strike any issues with your car, guess what, the dealer is there to help you. Most brokers would have wiped there hands of you by then, and then send you to a dealer with any issues you may have. Who do you go see when you arrive at a dealership if you don't know anyone? Would you expect to get red carpet service had you not chosen to purchase through them? I'm not saying you won't be looked after, but to have a familiar face and someone who you can lean on, will usually yield you better results.

As far as trade in prices go, we are not out to profit from trading your car in. The wholesalers are there for that. If you are happy with the trade in, chances are we will sell you a car so we do our upmost to ensure you get the best trade in possible. Definitely do your research, but don't use unrealistic websites like carsales as they are usually asking top dollar and are expecting to be offered less. REDBOOK, is always a good indication of what your car is worth as a Trade in.

A few things to remember; there is never a goodtime to buy, dealers are ALWAYS keen to sell cars. Sales are actually a good time to buy, because dealers are actually trying to sell alot of cars as they spend a lot of marketing budget in advertising etc, so they want some return for the outlay.

To summarise, why not build a relationship with a salesperson and a dealership that will look after you now, and in 5 years when you are ready to buy your next car? You will be looked after on price and if you do pay a little more, it will be worth it anyhow in the after service you will receive.

I am quite passionate in our customer service we offer and aim to be No.1 in the country. Even if we never get there, at least our customers a more than happy with our service and in return, will bring their friends and family to buy a car from us, and recommendations are in abundance.

Regards,

Rob McGrail

[Molotov]

Wai - What is the insurer kick-back that you speak of?

Rob - Good to hear it from a dealers perspective. Shame you're not Sydney based otherwise I would have paid you a visit last year.

[Finance_Analyst]

I think the actual purchasing and doing the deal is almost as fun as buying the car itself. After all, for such a large investment (well, technically a depreciating asset but who is counting??) I think being all over the details and what you could get by shopping around is vital. Brokers serve a purpose in helping the public deal with dealers should they not be comfortable themselves, but it is up to the dealer in question to actually make the experience a pleasant one. And on the subject of cost, the broker ain't the Salvation Army - they are in it for themselves so you have to question if their price is often the best.

[Captain Courteous]

I had a very, very bad experience with Private Fleet when I got my last car through them. If you do decide to buy though a broker, AVOID them.

There's no point in paying more money for a middle man to talk to your VW dealer for you.

Most brokers would have wiped there hands of you by then, and then send you to a dealer with any issues you may have.

Could of not said it better myself.. This is EXACTLY what happened to me..

Decision is yours at the end of the day, a car will probably be the second most expensive thing you'll ever buy after a house so like everyone's said before - Do your research.

I am not the best when it comes to negotiating for price.

I highly recommend the 'Golf Mk6 Dealer Negotiations' Spreadsheet.. I took it along with me when I bought the Golf.. It really did help when it came time to talk numbers.. You get a good idea of how much you're saving..

http://www.vwwatercooled.org.au/foru...eet-31714.html

Best of luck mate!

[sheckster]

Hi all,

From a dealers perspective, you need to understand that brokers actually use the dealers to quote for you anyhow. Not only that, you are actually paying in excess of $550 for the brokerage service. So don't forget, when using them, this is built in to the price you are paying. To me, that says that you should be able to source the price $550 better than they can. Generally the people who use brokers, are people who are actually too busy to go out shopping for themselves (doctors etc), hence the convenience of using a broker, and in this instance, they are very handy and do a great job. The reason brokers seem like they get better prices, is that they use certain dealers regularly and in return the dealer gives them a consistant discount, but regardless of this, it ALWAYS comes down to availability and also the current market.. So I am certainly not against the brokers in any way, it would be crazy of me to do so. However, by using them, you don't have the flexibility of finding a 'bargain' on a particular car that a dealer may have in stock. Nor do you get to touch and feel the cars or build a relationship with the dealer you are buying from. As you will read in many of my customers posts, we actually offer a full service to our customers, before, during and after they purchase a car, and therefore if you strike any issues with your car, guess what, the dealer is there to help you. Most brokers would have wiped there hands of you by then, and then send you to a dealer with any issues you may have. Who do you go see when you arrive at a dealership if you don't know anyone? Would you expect to get red carpet service had you not chosen to purchase through them? I'm not saying you won't be looked after, but to have a familiar face and someone who you can lean on, will usually yield you better results.

As far as trade in prices go, we are not out to profit from trading your car in. The wholesalers are there for that. If you are happy with the trade in, chances are we will sell you a car so we do our upmost to ensure you get the best trade in possible. Definitely do your research, but don't use unrealistic websites like carsales as they are usually asking top dollar and are expecting to be offered less. REDBOOK, is always a good indication of what your car is worth as a Trade in.

A few things to remember; there is never a goodtime to buy, dealers are ALWAYS keen to sell cars. Sales are actually a good time to buy, because dealers are actually trying to sell alot of cars as they spend a lot of marketing budget in advertising etc, so they want some return for the outlay.

To summarise, why not build a relationship with a salesperson and a dealership that will look after you now, and in 5 years when you are ready to buy your next car? You will be looked after on price and if you do pay a little more, it will be worth it anyhow in the after service you will receive.

I am quite passionate in our customer service we offer and aim to be No.1 in the country. Even if we never get there, at least our customers a more than happy with our service and in return, will bring their friends and family to buy a car from us, and recommendations are in abundance.

Regards,

Rob McGrail

Hi Rob,

Sent you a PM.

Thanks

[wai]

Wai - What is the insurer kick-back that you speak of?

The insurers give the dealership a "fee" for signing up the buyer to them for CTP Insurance. Because CTP is regulated, many buyers will simply renew with the insurer the dealer signed them up to. This was $2910 on my VW Caddy.