| Author |
Message |
Martin (Miami348ts)
Advanced Member
Username: Miami348ts
Post Number: 2839
Registered: 5-2001
| | Posted on Thursday, September 19, 2002 - 5:37 am: | |
Kelly,
I would say that all depends on what fee you are willing to pay. The situation you describe in what you are looking for is more what a dealer would cover. For that you pay a 10% fee.
For example the consignment cars I have have a $2,000 consignment fee. Flat, no matter what car. Does not matter how much you buy it for.
I feel however if I step out of the picture and let the buyer and the seller talk direct there is a much better line of communication than trying to be in the middle and passing on information.
Especially with Ferrari you have cars all over the US, sometimes the world. For the broker fee you can hardly expect a broker to jump in a plane and look at a car, again, unless you are willing to pay the true broker premium.
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Henryk (Henryk)
Member
Username: Henryk
Post Number: 269
Registered: 8-2001
| | Posted on Wednesday, September 18, 2002 - 10:57 pm: | |
If it is too easy to do, then, everyone, and his brother is doing it!!!!!!!!!!....the lure of EASY money, and suckers!!!!!
I'm pretty sure that a license isn't even required, to be a car broker. That is why it is so easy to do.
I would only consider one, if I am looking for something truely exotic, such as a real GTO.
I have bought 8 Ferraris in the past, and, never did I see the need for a broker. |
Horsefly (Arlie)
Junior Member
Username: Arlie
Post Number: 242
Registered: 5-2002
| | Posted on Wednesday, September 18, 2002 - 10:23 pm: | |
The higher dollar Ferrari world probably has more legitimate broker types than other car marques. From my small fish experience in the Corvette world, most Corvette brokers are just small timers who can't afford the car themselves, so they want to hold the car owner's telephone number for a $500 ransom. And chances are, if you ask around long enough, you could have located the car yourself. Another factor is redneck spotters. Guys that can't afford a car themselves, but have located a rare car and are willing to tell a broker where the car is for a fee. So by the time the car reaches its end purchaser, it's been "brokered" 2 or 3 times.
Everybody wants a big piece of the pie. Brokers or buzzards? |
Kelly (Tifosi1)
Member
Username: Tifosi1
Post Number: 396
Registered: 2-2002
| | Posted on Wednesday, September 18, 2002 - 9:24 pm: | |
I thought this was good reading and a good opinion. I believe Steve Jenkins wrote this:
I would like to chime in as someone who has worked both with and without brokers in a variety of deals to give a buyer's perspective. I've
worked with brokers as both a buyer and seller in auto deals, real estate deals, and some capital raising deals. I've even worked as a broker myself
in the past (I used to be a mortgage broker) and I've helped raise capital for some deals and taken warrant fees as part of that work.
If a broker does "leg work" (as you put it) that a buyer either a) couldn't or b) doesn't want to do, then the broker has earned his money. Buyers and brokers should agree up front on a) exactly what work is to be done by the broker, and b) how and/or how much the broker will get paid.
As a buyer and seller, it's customary to compensate the broker based on the
purchase price of the item. However, whenever I've used a agent or broker
that represents me as the buyer, I've always felt that giving the broker a
commission based on the purchase price actually mis-aligns the interests of
the broker and the buyer. The broker wants the highest commission possible,
and therefore wants the buyer to pay as much as they possibly can for the
asset. The buyer wants the best deal possible, and wants to pay the lowest
price they can for the asset. Whenever I do a deal, I try to align the
interests of all parties involved. But I've always found this aspect of the
compensation hard to swallow. Of course one can always agree on a fixed fee
with the broker, but broker's don't tend to like that. I'm curious to hear
the brokers' point of view about this.
Specifically dealing with cars, what I do like a broker to do is:
a) locate a suitable car according to my criteria
b) gather all the necessary information on the car (service history,
accessories, mileage, ownership history, current condition)
c) arrange for an independent inspection of the car
d) negotiate the deal on behalf of the buyer and IN THE BEST INTEREST of the
buyer (see compensation issue above)
e) coordinate a smooth transaction and payment
f) help arrange for transportation and/or pickup of the auto
A broker who can do all that is who I want to work with.
What I DON'T like is brokers who simply "know about a car" (many times the
car is already listed in the FML) and who expect to be paid some fee simply
because of their knowledge. I'm not willing to pay JUST for knowledge - I'm
willing to pay for expertise and work.
I must admit that when I've been looking for certain types of Ferraris (my
ongoing hunt for an F40 and a 275GTB/4) I've mostly encountered the types of
brokers that "know about" the car. In one recent situation, I signed
paperwork with a rather well-known Ferrari broker who had a good reputation.
He simply gave me the phone number of where the car was located and expected
me to do all the rest. I did ALL the "leg work," and learned MUCH MORE about
the car than he knew. He had represented the car in "perfect" condition. I
found previous service records and talked to mechanics who said the car was
"a time bomb." That kind of experience leaves a bad taste in my mouth and
makes me less prone to use a broker. And I probably won't ever use THAT
broker again.
So, bottom line is yes, I WOULD use a broker IF he could do all the things
for me that I mention above. Provided, of course, we could figure out some
way to compensate him that makes him want to represent ME in the
transaction, which means getting me the best deal possible on the best car
possible.
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