Need Advice

[Lilmoneymaker]

Ok this is my idea:

When you go to buy a new car, what is the first thing that comes to your mind? For me, it is dealing with the car dealers. I know a lot of people that hate doing this. The only person that i have ever met that likes doing it is my father. What I would like to do is let someone do their dealings with the car dealer, without having to get down and dirty with them, and if the price is not low enough for them, then they call me. After I receive the call, I will then go in and try to get the price down lower so my client can purchase the vehicle at the price that they like. Where I make the money from is, I charge 10% of whatever i save the person. For example, if somebody goes in and the lowest they can get the dealer down to is $30,000, but i go in and talk him down to $28,000. I just made myself $200. I know that isn't a lot but right now im only making $300 a week, and i hate my job. I think that this would help me get through college. Plus no start up cost so there really is no risk at all. Please tell me what you think.

[Lilmoneymaker]

I spoke to somebody else about my idea, and he said to up the comission to %50. So instead of making $200 i make $1000 on that situation i explained earlier. Would like some feedback. I am aiming to start this in the next few weeks.

[Nigami Enterprise]

I reckon it's a great idea mayb find out what sort of commision used car brokers charge.I would keep you commision pretty low and look at high turnover to make your profit because the whole aim of your idea is to save them money. One issue i do see is how are you planning to advertise before or after the client finds a car. Good Luck with it because it sounds like a pretty new concept do some trial runs so you don't have to spend big $$ to see how it works. No harm done

[artdrops]

autonegotiater.com is parked by someone on go daddy but I would find out who owns it, it's sounds like something that could be implemented with just a few ads in your local paper first. Just have prospective car buyers call you before and after they visit the dealer and remember to have a contract to ensure your payment.

[iGROWyourBiz]

what you are doing is called an auto broker.

Check your state for laws regarding such a task, you may be required to have a license, insurance, bond etc.

Also 50% is not uncommon, neither are flat fees. The hardest part will be building trust --its heavy word of mouth and networking.

Like a realtor, you have to go out and talk to as many people as possible. You also need to learn the auto business inside and out. The dealers wont respect you if y ou come in to "negotiate" and have no clue what your talking about.

Do you know what the Black (not blue) Book is? or what ACV is when it comes to trades? that and percentage points on financing is where most of the wiggle room is in negotiating.

If you can look out for the DEALERS interest AND the buyers your relationships with the dealers is what will make you money. Because in the end, you will bring more business to the dealers when people come to you and they have NO IDEA what dealer to go to. Thats what most peoples problem is, they are not sure which dealer is "best". They would look to you for that expertise.

Also if your in college, you will need to carry yourself VERY well and have a track record if you are going to convince people 40+ to let you handle the negotiation for their car purchases.

Also be sure to check into your fiduciatry duties and liabilities -what if you get them a "bad" deal? Can someone come back and come after you for money, because they feel you negotiated poorly?

Also for a new car purchase, the person has to be there to sign to close the deal, but more importantly, they have to give personal info -- SS#, DL#, Insurance, you will be witnessing everything a person has that represents their identity (think Identity Theft liability).

Trust from buyer and dealer are you biggest issues. Your state may require you to have power of attorney to be involved also.

I am just saying be sure you check into all the laws. Dealers have strict rules they must follow federally, find out which ones apply to you on a local, state and national level.

Just look before you leap and Best wishes in your endeavor!