My Car Book Page 4

Submitted by Jnick1 on Fri, 2007-07-13 15:42. Autos & Vehicles

An automobile broker
will factory order the domestic car of your choice for local delivery
through the respective brand name dealership. The automobile
broker’s major sales pitch is “dollars saved” (discount). You are told
that he has no salesmen to pay and no facilities to maintain, and that he
can sell you a new car at a little over dealer cost. *** Not
quite so. Working as a franchisee, the automobile broker places your order
through a buying company (franchisor) who receives a fee per unit ordered.
The local dealer who delivers your car receives a courtesy delivery fee of
$100 to $125. The automobile broker himself will write as much profit as
possible and call it a brokerage fee, a get-ready charge, a buying fee, or
any combination of the three. The illusion of savings is
simply that—an illusion. There are just too many fingers in the
pot. Buying

through an automobile broker has intrinsic disadvantages: You cannot work
a trade you must dispose of your old car on your own; and
after-the-purchase service leaves you at the mercy of a dealer who did not make
a decent profit on the deal.

All disadvantages of factory ordering apply to the automobile broker, for he does
not carry an inventory. Inspection of merchandise is severely restricted. Your
recourse is limited: the dealer made no representations—he only made the
delivery—and the broker only placed an order at your request. That leaves the
factory and an elusive factory representative.

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