Buying a new car through a broker

Hi OzB

Looking to buy a new Subaru Forester 2.5i-S. Live in Hobart which only has one subaru dealership. The dealer has flat out refused to negotiate on the price. While watching video reviews on Youtube, one of the guys plugged autoexpert.com.au who appear to be a broker. Gave them a call and told them what I want and they got back to me 2 days later with a quote $1400 lower than sticker price. According to them the inclusions are the same as buying from the dealer direct- I pay no fees for the service cause they get paid by the dealer.

Sounds too good to be true and im worried there's something im missing.

Anyone had any experience with a broker? Anything I should watch out for?

Thanks

Comments

  • +1

    Sounds about right.

    You are buying 1 Subaru. The broker has probably purchased 5 this month already. Mates rates.

  • +5

    Broker is probably using fleet rates which isn't accessible to the normal public.
    Pre-covid you could easily negotiate better than this but the dealrers are probably not willing to entertain any negotiation any more, but most likely still have to honour fleet rates.

  • +9

    I've used a broker in the past and car and discounted price was completed as discussed. As others have indicated, you're trying to buy one car from the dealer, where they are buying several.

    Broker also arranged for the car to be delivered to my house. So like a kid, I was sitting and waiting by the front window for it to arrive on the back of the truck.

  • +2

    I've had a variable experience with car brokers.

    One was very pushy and tried to get me to commit to a purchase price and put down a deposit before they would approach dealers on my behalf. Also then told me I misunderstood the service he was providing when I insisted on seeing written quotes before handing over any money. Not going to name them publicly for potential litigation reasons, but you can PM me if you want to know who they were.

    Other car broker (BOQ) was excellent but I didn't end up going with them because I bought a near new demo instead at a much greater discount.

    Other suggestion to make sure you load up on all the extras you can negotiate, like free delivery to your house, full tank of fuel, car mats etc etc.

    • and as above posters have said - they are using fleet rates hence the discount. Also getting dealer networks all over the country to compete against each other

    • +1

      Unfortunately can't PM you due to: "User avidd does not accept new conversations."

      Feel free to use binary code translation for the name, or greek letters.

      • PM'd you :)

        • cheers champ

    • Which broker was too pushy?

      • C'mon, who?

        • +1

          Was it Pushy McPushface?

  • It’s entirely possible you could do better yourself, but with a lot more work. Ringing dealers all over Aus, organising shipping etc.

    Autoexpert has sent an email order to their regular dealers and picked the better price offered, added their cut and given you a price. You accept, pat and they deliver. Honestly, they don’t need to work hard to save you money like they say. You could probably get the same price or a little better if you lucked ringing the right dealer at the right time.

    Is there a risk? Possibly, but it’s pretty small. You still get to inspect the car before accepting it. You still get full dealer warranty/support etc. they could shut up shop with your money and no car, but seems unlikely.

    In a non covid affected market you might be able to get a better deal yourself when there are less people waiting at the dealer door for their car and more cars waiting for buyers.

  • +1

    Buying from a dealer: You have to fight with one dealer, you have no negotiating power.

    Buying from a broker: Many dealers fight to get your business, you have the most negotiating power.

    You can emulate a broker by getting quotes from many dealers and getting them to fight against each other, or you can just use a broker.

  • +2

    Bought from broker before and was great. Easily the cheapest price compared to me trying at the dealer
    But the second time he wasn’t cheapest. Was able to negotiate better at the dealers

    So buying thru broker is fine , but test the price by seeing if you can negotiate better at the dealer first .

    • [quote]So buying thru broker is fine , but test the price by seeing if you can negotiate better at the dealer first .[/quote]
      Whilst good advice in pre-COVID times, but your negotiation power with the dealers ATM is pretty much zero.

      • -1

        Then perhaps the broker deal is a good deal in these circumstances. The benefit is having the broker quote. There's nothing to lose with saying to the dealer "can you beat this price"

        • Well.. you don't have anything to lose. The broker loses business after doing all the work for you for the local bloke to knock off $100 and win a deal.

          Ethically you've used them to gain something you wouldn't otherwise have gotten without doing a lot of work yourself.

          • @Matt P: If the broker's business model involves a consumer so easily obtain a better price than what they can offer, then there would be market for brokers out there.

  • Gave them a call and told them what I want and they got back to me 2 days later with a quote $1400 lower than sticker price

    Can you find out which dealer they're going to refer you to to get it if you go through with it? Go to the dealer and ask them if they can match the price. They likely can because it means they probably don't need to pay the commission to Mr Cadogan if you go direct. It'll be a win for both yourself and the dealer!

    • +1

      Lol. That's the exact reason why a broker won't tell you the dealer.

      • +1

        My brother got one that did.

        It was a small broker and the price was quite a bit lower than what we were able to negotiate. They actually told him which dealer to go to and quote their details and price. So we had the option to go and deal with the dealer directly and I'm sure we could've negotiated further by cutting out the broker.

        However, we we were already going to be saving with that lower price he's given us and we thought that it's only fair the broker also gets paid his share.

        • +1

          Well that broker obviously gets paid commission by referral rather than adding their price on top. Completely different. Dealer wouldn't negotiate further and cut out the broker because the broker will have your details and require the dealer to crossmatch for reporting. Otherwise they don't get any more referrals.

    • This did occur to me. There's only 3 dealerships in Tas and none of them seem to be who is dealing with the broker. I haven't explicitly asked but other other 2 dealership are 2.5hrs and 4 hrs drive away so its not as simple as popping in.

      • So call them and email them ……

    • +1

      Yes, with 4 adults. And a dog. It was perfectly adequate.

      • Cool. The broker will bring a good result then.

      • +1

        To be fair most 'A to B' drivers don't even know what CVT stands for or realise it's any different to a normal transmission.

  • Anything I should watch out for?

    Yup. Ask what the ETA is. You could be waiting 6 months.

    • Was told "up to" 4 months wait if I want a specific colour and none of the other colours will do. Same as the dealership though.

      • +3

        Recently bought a car and "up to 6 weeks" turned into 5 months. Don't trust them. Do your best to find a vehicle that's already in the yard.

  • +1

    There might be a 'new' 2022 Forester around the corner.

    https://www.subaru.com.au/around-the-corner/register-your-in...

    • I was told it would be up to 4 months wait but would be getting the MY22 car- its already out as demos at the dealership so that's what we are looking at.

  • I know that dealership and prices they charge are ridiculous. Tas car prices are crazy

    My guess broker has fleet rates as mentioned also the car is being shipped from another dealer willing to deal.

    Id email a few dealers interstate and see what they do including shipping to your door.

  • Autoexpert's business model is sound with reviews to back it up.
    If a dealer doesn't want to play ball then that's their problem. Sitting in the monopoly comfort zone can only work for so long.
    Having said that with the current wait periods you'd struggle to find a dealer chomping at the bit to discount cars given the car shortage.

  • +2

    Cadogan is a broker broker… I have tried to use him twice and both times he failed to even get me a car at RRP.

    He is a broker broker, meaning he farms out his work to brokers and charges them a fee. They then in turn farm out to dealerships and every step in this chain adds their own "finder's fee" that just gets tacked onto your final price.

    I was able to smash his prices out if the water by just doing the legwork myself. He wasn't able to save me thousands because the peon couldn't even save me hundreds…

  • motorscout got me $1400 off on my kia seltos in April with delivery to my door from Sydney and Canberra plus some accessories, couldn't be happier.

    • -1

      Duh

  • +1

    My last new car was through a broker, great price and no annoying dealership salesperson to deal with. Broker is definitely the way to go.

  • -2

    And then where are you going to have it serviced? You just burnt the only bridge to Subaru in Hobart. You know they will black-list you.
    No advice, no service, and if they did relent and tend to you, what sort of job do you think they would do? Delays in parts, excuses excuses… so then you are left stuck in Tas with a dilapidating vehicle that no one wants to touch.

    All bc you thought to Not Support You Local Business

    • +1

      You know they will black-list you.

      What? Surely you are trolling. Why would any dealer reject someone who wants to have a car serviced there. The service department don’t care where your car was delivered, just that you keep handing money over for them to change the oil and tyre shine the wheels.

      Would get blacklist you if you bought your car in another city then moved there? Nope.

  • Ring a couple of Melbourne Dealers and get their best price. My Dad did this and the Tassie dealer matched the price. He saved several grand over the price even with the shipping.

    • +2

      Or go to Melbourne after haggling a good deal, make a weekend of it and come back on the ferry with a new car

  • +1

    Bought a vehicle through Motorscout and can recommend them highly.

    Saved more than $3500 compared to other quotes gained personally.

    Process is simple and saves all the stealership hard sell issues.

  • +1

    I bought a Forester through Autoexpert.com.au in 2019.

    They got 15% off RRP. The best I could get in Perth after trying the 4 dealerships was 5%.

    The broker, Georgie, explained that they could get good price using their access to fleet pricing. The reason they did it for individuals was so they could keep their numbers up so they could get best price for corporate customers.

    Excellent service. Highly recommended.

    • +1

      Re accessing service through dealer - no problem.

      However, I now get car serviced by RACWA for 2/3 of dealer fixed price service.

      • Re wait time for delivery - I was told 6 weeks. I asked dealer several times for more details. He couldn't / wouldn't be more specific. I spoke to broker and he told me name of ship it was on and when it was due to dock at Fremantle.

  • Find the cheapest car on carsales ozwide. Then get them to quote delivered to your door insured.

    if the car comes from overseas (interstate), factor in compliance inspection (usually app 100), stamp duty, green slip n rego. DIY registration.

    assuming you are buying new.

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