[AMA] v2- Im a Car Broker and Financier - Ask Me Anything

ALTBrokers on 13/11/2019 - 11:14
Last edited 13/11/2019 - 17:31 by 1 other user

Hey All,
Following many requests to do a followup AMA thread regarding Car Brokering and Finance, here it is…

Im a motor vehicle broker with extensive experience in brokering new cars, and assisting clients in understanding and negotiating the myriad of car financing options.

Im fortunate to have a diverse background from dealer sales, corporate sales, finance, product management, and I am happy to share my knowledge, advise on any deals (this is ozbargain after all!) as im passionate about cars and the industry as a whole.

Ask me anything you like.

Im not associated with any brand, dealer or finance company.

Introduce Yourself

closed Comments

  • Skramit on 13/11/2019 - 11:22

    Do you get better commissions from business car loans and push people towards those products even for personal use? I experienced this from two car loan brokers in the past and found it quite bizarre.

    • ALTBrokers on 13/11/2019 - 11:29

      No, its very similar in terms of commission personal vs business. Business finance/Commercial hire purchases however are much easier to get approved which is why those finance bookers were probably pushing you down that path, pretty poor advice IMO.

      • Skramit on 13/11/2019 - 11:33

        Ah that's probably why. Brokers basically said "if you say you use the car for 50% business i can get you a loan tomorrow".

        • chumlee on 13/11/2019 - 12:34

          It's because under a consumer loan, the broker must comply with the NCCP Act & responsible lending obligations.

          Under a business loan you are not afforded these protections

  • Typical16-bitEnjoyer on 13/11/2019 - 11:45

    What is your standard advice for someone who wants to finance a ~$35k brand new car and has an annual income of ~$65k

    • Skramit on 13/11/2019 - 11:50

      Hrmmmm, a loaded question, sense I do.

      • Typical16-bitEnjoyer on 13/11/2019 - 11:52

        It's a simple question.

        • Skramit on 13/11/2019 - 11:53
          +1

          It's a good one. I'm interested to hear the answer!

    • ALTBrokers on 13/11/2019 - 11:57

      I cant provide specific financial advice unfortunately, as im not a financial adviser. IT all depends on other assets, other expenses that person would have. my general comment based on the information provided, is look at 3 year old models of that same car with low KMs and perhaps buy that instead…

    • brendanm on 13/11/2019 - 12:45

      Buy a used car.

      • Cheeper on 13/11/2019 - 17:25

        Rego transfer fee, worn consumables like tyres, brakes,battery, etc.
        Limited or no warranty.
        You have no idea how it has been driven or fiddled with.
        Depreciation can be savage if you pay max retail for a used car.
        ….. It is not always the way to go…

        • brendanm on 13/11/2019 - 18:26

          Transfer fee is tiny. Buy one with good tyres. Tyres, brakes etc are consumables anyway, do you sell a car when they need replacing?

          Why would you pay max retail for a used car?

        • ALTBrokers on 13/11/2019 - 18:37
          +1

          These are good points and why often a well negotiated new car can actually be a similar or only slightly higher total cost of ownership than a 1-2 year old car of the same type, as brakes and tires will become due earlier etc.

          Not saying it's cheaper than buying new, it never will be, but if it's much closer and you get full new car warranty and peace of mind as first owner, this can tip the scales for many prospective buyers

  • rookie317 on 13/11/2019 - 11:48

    I'm intending to buy a new car with a credit card then do a balance transfer to another and keep on going (all cards with supposedly 0% interest balance transfer promotional period of course). With the 6-9m 0% interest that most cards have, I assume I can do this for couple years. Is there any cons for doing this? Would you recommend it?

    • ALTBrokers on 13/11/2019 - 12:00
      +1

      I cant offer specific advice, however if it were me I would want to know for sure you can afford to pay the card(s) off when the music stops, as the major downside to this is the Credit card interest you will be hit with at the end of that interest free period…

      In short i wouldnt recommend it

    • rompastompa on 13/11/2019 - 12:02
      +1

      buy a new car with a credit card

      Check the dealers credit card fee. You may be spending more on initial CC fees than the benefit of interest free.

      • ALTBrokers on 13/11/2019 - 12:08

        Great pickup, missed that. Most dealers will charge a percentage to use a credit card for amounts over $5k

        • rookie317 on 13/11/2019 - 12:22

          Thanks guys, I'm aware of the cc fee (about 0.8%), I still think it's worth it compared to the average car loan rate and they agree to cover the first 5K indeed.
          I can always pay off the whole amount if needs be, I'm just wondering if this is a viable way to do it since I got better things to do with the money. Have any of your clients done it?

    • chumlee on 13/11/2019 - 12:37

      How much is the new car and what credit card limit are you expecting?

  • pm88 on 13/11/2019 - 11:50
    +1

    What is the best deal you have made for either a customer or yourself?

    • ALTBrokers on 13/11/2019 - 12:07
      +3

      Theres been lots of good ones for different reasons, like getting a client a Porsche 911 GT3 allocation with no markup in 2015 (that is actually a great deal if you follow the situation with GT3 cars in australia)

      Also, although there were many factors involved in this one, a new BMW M5 Competition on release day for a client of mine at more than 30% off RRP

  • Peanut money on 13/11/2019 - 12:05

    Are you able to negotiate on teslas pricing?

    • ALTBrokers on 13/11/2019 - 12:07

      No, Telsa dont operate a dealership model and there is no competition as its all fixed factory pricing. I have helped a client negotate on one second hand though.

  • Hybroid on 13/11/2019 - 12:11

    I've noticed Carwow.co.uk in the UK which appears to be a broker that uses their purchasing power to get people better deals on new vehicles. Do you operate in a similar way? Are you able to get better deals on single purchase vehicles or does it need to be a collective order?

    • ALTBrokers on 13/11/2019 - 12:24
      +1

      We are very similar in to carwow in terms of what we do - We use our network and purchase power to get individual people better deals on new cars, with minimum hassle and stress negotiating with dealerships and sales people.

      Single purchase vehicles is exactly where we can help, its 99% of what we do.

      Mod: Edited

  • Press2 on 13/11/2019 - 12:27

    What's the most common car type / brand that you deal with the most?

    • ALTBrokers on 13/11/2019 - 12:29
      +1

      The top 3 cars people come to us to source are Mazda, Audi, and BMW

  • pyramid on 13/11/2019 - 12:47
    1. Do you deal in new car only or demo/dealers users car as well?
    2. what is the max % discount you got for Kia Sorrento GT-Line?
    • ALTBrokers on 13/11/2019 - 13:14
      1. Deal in new and near new (demo) cars, also do used but that is custom brokerage, mainly for exotic cars and collectors etc
      2. about 15% from memory but id need to look
  • godofpizza on 13/11/2019 - 13:06

    whats the worst deal or customer that you have com across?

    • ALTBrokers on 13/11/2019 - 13:14
      +1

      worst customer probably was one that wasnt happy with a 20% discount on an Audi, wanted more "value" from my service, and despite many negotitations and back and forth alread, demanded I call 4 other dealers with him on the phone to negotiate a "better price.."

      • godofpizza on 13/11/2019 - 17:18

        do you still have to charge a fee if the customer doesn't go thru with the sale? or if the car ends up being a dud?

        • ALTBrokers on 13/11/2019 - 18:31

          We still charge a minimum fee to cover our time and effort even if a customer doesn't go ahead, but even in these situations our clients walk away armed with knowledge that will save them many multiples more than this fee.

          The car being a dud is nothing we can control unfortunately, but with buying a new or demo car, you are protected by all the warranties from the manufacturer as well as the ACCC.

          Fortunately these are very rare events these days.

  • Ten on 13/11/2019 - 13:23

    Do you charge a flat fee or is it a percentage of the car value/discount acquired?

    • ALTBrokers on 13/11/2019 - 13:58

      We work off a flat fee based on the average time each car takes us to broker, rather than percentage of the car value.

      • godofpizza on 13/11/2019 - 17:05

        are you able to tell us how mmuch the fee is? how many cars are you looking for right now?

        • ALTBrokers on 13/11/2019 - 18:33

          Our fee is $550 on cars under 68k, and $850 on cars over 68k

  • EDM on 13/11/2019 - 13:35

    What is your view on the economy, in reference to new car sales?

    For reference: https://www.smh.com.au/business/the-economy/australians-shun…

    • ALTBrokers on 13/11/2019 - 15:11

      IMO, we suffer greatly from the wealth effect in Australia, as we are property lovers compared to a lot of the rest of the world.
      As property lovers, a large percentage of Australia's population wants to own or does own property.

      This makes us very sensitive to teh wealth effect, if our homes or investments are increasing in value, we are more likely to buy that new car, or renovate the house etc etc, but when property is declining, most of the population focus on paying down debt etc or perhaps buying a 2nd hand car.

      I think that is hwat is happening at the moment, the federal election really put peoples hands in their pockets when it comes to retail/discretionary purchasing and also motor cars/boats etc.

      I think the property market is the bellweather of the economy so i always follow that with interest

      Just my opinions of course, keen to hear others thoughts here.

  • Typical16-bitEnjoyer on 13/11/2019 - 13:52
    +1

    Does your business have a website as good as this? https://www.lingscars.com/

    • ALTBrokers on 13/11/2019 - 13:59

      that site is insane, i dont know where to look!

  • TheBilly on 13/11/2019 - 14:21

    Is it true that Toyota have a fixed price model now or is it just marketing bull that the dealerships spew so people don't push for better pricing?

    • spackbace on 13/11/2019 - 14:31
      +1

      Is it true that Toyota have a fixed price model now

      No they don't

      • Hybroid on 13/11/2019 - 16:57

        Why though? Is it literally to eek out some more cash out of buyers? Never understood this haggling bs when buying a car, why can't they just have a fixed price for what the product is. I don't haggle for the price of a sandwich at Coles…

        • spackbace on 13/11/2019 - 17:12

          I've gone over that debate before.

          There's factors to both sides as to why it would take a while to put in place.

          At the end of the day, the customer can feel free to pay list price for anything they buy (cars, houses, tv's etc). It depends on the type of business as to whether negotiation is normal or not.

          Do you pay full price for your sandwich at Coles or wait for it to be on special? Do you feel you got a bargain on your sandwich if you always buy it on special, then 1 day you have to pay RRP?

    • ALTBrokers on 13/11/2019 - 15:15

      Spackbace is correct, no fixed price model at Toyota that ive come across

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