[DeTomaso] NPC - Truck Shopping

[tony DiGiovanna]

Sometimes it's hard to imagine how some things evolve.
  -----Original Message-----
  From: MikeLDrew at aol.com [mailto:MikeLDrew at aol.com]
  Sent: Saturday, January 26, 2008 10:22 AM
  To: tonydigi at optonline.net; detomaso at realbig.com
  Subject: Re: [DeTomaso] NPC - Truck Shopping



  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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