A car dealership is one of the most interesting professions in the automotive world. A car broker is a service that sells one person’s car to another. A broker will get a predetermined service fee or commission from these transactions.
Although it sounds simple, in reality, starting a car brokerage business, there are ways to be successful. This, of course, must be done so that you avoid negative expressions about car brokers.
This article will thoroughly discuss becoming a car broker, what is prohibited, and the salary earned.
The Role of a Broker in Selling Cars
The role of a broker or broker is quite important in terms of buying and selling. For example, property brokers who help sell homes, insurance brokers who sell insurance products from various companies, and used car brokers.
In essence, a broker or broker is an intermediary that bridges buyers or sellers. These brokers offer their services as a mediator that bridges buyers and sellers.
As a car broker, you need a good understanding of automotive trends. In addition, you, of course, need to have a very wide network.
This car buying and selling intermediary brings benefits for those who want to sell their goods or personal vehicles. Moreover, finding people who want to buy a car is also not an easy matter.
With the help of a car broker, car owners don’t have to worry about advertising and post announcements here and there. Just leave your vehicle to them, and let them find and convince potential buyers themselves.
It’s not enough to stop there, and car brokers will even participate in various things related to the automotive world. Usually, these car brokers already have a channel to help with tax administration, change the car’s name, and so on.
Car Brokerage Commission
The advantage of this business is that it is almost without capital and can be used as a side business because it is not bound by time. You need to find the cars you want to sell and match them with the right potential buyers.
But make no mistake, the income is also promising, you know. Considering the price of a car is quite expensive, it can reach tens to hundreds of millions. The amount of the car brokerage commission depends on the agreement. Sellers and brokers can determine for themselves how much commission.
On average, car brokers earn anywhere from 2 percent to 5 percent of the transaction value. However, it could also be a point-of-sale system in which the seller determines the final price of the car being sold, and then the broker determines the profit they will receive.
For example, suppose a person sells a car for $10000 through a car broker. This broker fixes a commission of 2 percent. So, he is entitled to a salary of $ 200 if the car is sold through him. Pretty good, right?
How To Be A Successful Car Dealer
There is also a way to become a car broker, so it shouldn’t be arbitrary. Expanding the network is one of the first steps that need to be done.
So, what are the ways or tips to become a new car broker or a used car broker?
Ways to Be a Successful Car Broker and Earned Commissions
1. Master the car information
Since you are the one selling the car, then you are the one who should know a lot about everything about the car. Just imagine, when a potential buyer asks about his car, and you can’t answer, be prepared for the prospective buyer not to buy it and run away to another broker.
Without reason, prospective buyers also need information on the car you are selling to ensure that its condition is following their needs and budget.
Well, that’s how it is. Therefore, you must learn about automotive knowledge as a car broker. What you must know:
- Car specifications (including engine capacity and transmission system)
- Machine condition and design
- Parts condition
- General price in the market for dealer and user level
2. Expand relationships
A strong network and extensive access to information are the main keys in the world of the car brokerage business. There are many advantages that a car dealer can get by having an extensive network.
First, by getting to know many people, a car broker will certainly find it easy to get a car that you want to sell. The more relationships or friends you have, the more people will ask you to sell their car. In addition, your chances of getting information on who wants to sell their car are also getting bigger.
Not only that, besides finding a car seller, you can also find people who want to buy the car. For example, the more items and exclusive merchandise, the shop will certainly be crowded with buyers.
3. Use information technology
Utilizing information technology is an important step to streamline the car brokerage business. Technological literacy and reliable smartphones can be powerful weapons to market cars. A car broker can use various social media and e-commerce to increase sales.
A car broker can communicate with customers and fellow brokers through the smartphone. Well, this technology is not very useful for building business relationships.
Because you use the internet, you have to spend a little money to buy credit or install wifi. A smooth connection will make it easier for you to promote your car. Oh yes, don’t let bad connections and limited credit hinder your negotiation process with potential buyers. If you have this, your prospective buyer will move to another broker.
4. Diligently Doing Promotions
There are many ways to do promotions, especially in today’s sophisticated era. No need to hire an agency to make advertisements. You need to take advantage of social media, free classified ad sites, or even a well-known Indonesian marketplace.
Don’t miss it, also promote your selling car in WA groups, Facebook, and forums for buying and selling used vehicles. It would be better if you are a fan page or sales account with many followers. As a result, many potential buyers bid once you upload a car photo.
The above is certainly not done haphazardly. There is a way to make your sales sell. Try to pay attention to composing effective promotional words in advertising your car. Ensure all important information is listed, such as contact numbers and vehicle details. Upload photos of car parts. Find out the secret to effective sales.
5. Completeness of Vehicle Documents
In addition to mastering the product, the easier it is for you to influence customers to buy the car you sell. Another advantage is that it can trust people that the car being sold is not fake or stolen.
6. Pay attention to appearance
Don’t forget about appearance when you have got a prospective buyer and have made an appointment to meet. Don’t just polish the car, and the seller must also look neat and pleasing to the eye. It doesn’t have to be expensive clothes, and the important thing is that it’s appropriate.
What’s the point of a good appearance without behavior and polite words. Pay attention to every word that appears. Do not speak in a loud voice and raise intonation.
7. Uphold business ethics
If you already have an extensive network, the next step is to maintain and continue developing it. Believe that the car brokerage business also needs ethics. Say no to cheating so people will be loyal.
In the car brokerage business itself, if you want to be successful, you must uphold the principles of honesty, brotherhood and mutual benefit.
8. Obey the law
Not a few people view this job negatively. As a used car seller, you must obey and be guided by applicable laws and regulations. Doing this would help so that you and the buyer will not be harmed when making a sale transaction.
Never violate it because it can harm the business and the worst thing is to lose customers. How come? Buyers who should review the quality of the car and good service can review it negatively just because you cheated and got into legal trouble.
Prohibitions in the car brokerage business
There are at least a few things that you should avoid in running a car dealer business. Anything?
- Cannot take sides with either party
- Don’t use violence
- It is forbidden to take profits outside of their rights
- Can’t force and intimidate
- Don’t intentionally cancel the transaction unilaterally so you can take a forfeited down payment from a potential buyer
- Be a neutral mediator
- Can’t complicate correspondence
- Don’t expect facilitation money
- It is forbidden to ask for commissions outside of the previous agreement
- It is not allowed to ask for a commission before the product is sold
- Do not save DP from prospective buyers without the seller’s permission
- No profiteering from other parties who have no relationship with the transaction to influence the buyer
- Do not seize ‘projects’ that are already held by other brokers
In addition, make sure during the bargaining or negotiation process, if the prospective buyer does not match the price set, you don’t have to insist or force the buyer to agree. If there are still, offer a car that fits their budget.