Okey kokey here we go. Are we all sitting comfortably?
I know very well how these dealers/brokers work as I was supplying for one of them for six months.
Firstly, car brokers for VW will cease to be very soon. I'll explain why at the end....
Broker will have an arranged discount level with his dealer. Will be a proper dealer, usually organised through the fleet sales dept. The broker will also recieve a kick back from the dealer. For example, if the broker is advertsing Golfs at x%. The dealer will be supplying them direct to the end user at x% discount, and giving the broker a y% (usually 1%) handling fee. The dealer makes nothing out of it at all. The only benefit to the dealer is they turn the numbers over. The normal pattern is that you go to a brokers website, chose your car etc and give them your credit card details to order a car. Your card details then get passed on to the nominated dealer by the broker and the dealer then phones you to confirm spec colours and price and then takes a deposit from your card. The broker will then call the customer, make sure that they've ordered a car, then invoice the dealer for the handling fee.
I approached a big name broker a couple of years ago and had several pub meetings (thankyou John!) to discuss it all. We agreed on a percentage and a kick back and did some good numbers for a few months. I'll be honest, I couldn't care about the customers because I was earning next to nothing for each one, I never met the end users and they were all miles away. I used to speak to them once to confirm order, once to take the full amount and then just send our delivery truck to whereever with a car. Any problems on handover had to be sorted by the customers local dealer.ÂÂÂ
It all comes down to my favourite question. Do you want the cheapest car? or the best package?. If you just want the cheapest car, buy from the web. If you want a dealer who will say hi when you come in for service, remember you and your kids names, offer to bring your car in for a service, sort out any problems on handover or for the next few years for you because he feels compelled to because he knows you. If you want a salesman to answer your call and not divert you to his voicemail, if you want the salesman to actually give a sh!t when you call to say there is a rattle from the near side wheel, for the salesman to remember you when you come back in three years time etc etc etc,.........buy from your local dealer. They'll do you a deal, just BE HONEST with them. When I now come up against the car broker thing, I very quickly tell people that I will not match their quote. We all know where we stand then. I tell people that they must contact the internet man who you'll never meet to organise a test drive. (sorry but i've got a large mortgage and a kid to fund....) If you want two grand off your next car, you're going to have to put up with not visiting your dealer, not driving their fleet of demonstrators, not drinking their coffee or eating their biscuits. Aldi service or Waitrose service, It's your money and your choice. I know what i'd do.......
Incidentally, VW have changed the way dealers are paid for selling cars. It's no longer about numbers but about the results of customer satisfaction results. i.e There is no longer any benefit for ABC dealer to offer massive discounts and shift an extra 25% of cars for no profit. Hence VW are removing the need for dealers to sell cars for nothing and get back to creating positive customer experiences and great customer service. Afterall, if you want a cheap car, buy a fu(k1n9 Kia!
Rant over, I do apologise
