[DeTomaso] NPC - Truck Shopping

[MikeLDrew at aol.com]

In a message dated 1/24/08 7:38:11 PM, tonydigi at optonline.net writes:


> So.....were any of these broker sales on new cars?
> I called the local listing for a car broker - used cars only.
> I can't really wrap my head around how there could be such a thing as a
> broker for new cars:  How could the franchise dealership network would ever
> stand for it?  Isn't the exclusive right to sell the factory product a
> primary tenant of any franchise retail contract?  It's kind of the basic
> points I'd say.  Even if so, it would seem like a broker was a dealer then
> and would have similar cost/profit structure as a dealer?  I also can't
> imagine a dealer selling cars to a broker with a discount sufficient for the
> broker to sell to me at a price lower than the dealer's retail price to me.
> 
> This is difficult to comprehend.
> 

Corporate fleets don't buy cars from dealers, and manufacturers are 
prohibited by law from selling cars to end users.

Hence, brokers.   When a broker buys 2000 cars at a time for, say, IBM, or 
20,000 for Hertz, the manufacturers give him a pretty good deal.   That same 
broker can also buy cars one at a time, and invoke that same deal.   The broker 
isn't *buying* the car from the dealer (in my example for Rick).   The broker 
is buying the car directly from the manufacturer; the car happens to be sitting 
on a dealer's lot.   The manufacturer then takes the car back from the dealer 
and transfers it to the broker.

Mike


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