Author Topic: Auto Brokering  (Read 854 times)

gpotter

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Auto Brokering
« on: February 08, 2019, 10:35:26 AM »
Hey all,

I have recently found another good way to make some side hustle cash. I've been working with a luxury auto broker as an independent contractor. In a nut shell, they locate a valuable vehicle and then give me the money to make the down payment. I go into the dealership and purchase the car. They set up transport or storage, and purchase the car from me. They are always looking for new brokers.

If anyone's interested, feel free to DM for details. Full disclosure, there is a referral bonus for anyone that signs up and mentions my name.

Thanks!
« Last Edit: February 11, 2019, 06:09:05 AM by gpotter »

midwesterner1982

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Re: Auto Brokering
« Reply #1 on: February 10, 2019, 12:00:00 AM »
What states are they looking to add reps?

gpotter

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Re: Auto Brokering
« Reply #2 on: February 10, 2019, 07:26:23 AM »
I am located in the Southeast, but I'm pretty sure they are added brokers nationwide. If you're interested, I can send you details via DM.


TexasMu

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Re: Auto Brokering
« Reply #3 on: February 10, 2019, 12:03:49 PM »
I'm curious about this process.  DM sent !

WranglerBowman

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Re: Auto Brokering
« Reply #4 on: February 11, 2019, 11:51:33 AM »
How does that work with capital gains or being considered a dealer if you're buying too many cars?  I'm interested in this as well but unless you're working in cash and never transferring titles into your name, I'm a little confused about how this works...

gpotter

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Re: Auto Brokering
« Reply #5 on: February 11, 2019, 12:05:55 PM »
I believe that there is a limit to the number of vehicles that can be purchased and resold in a year, but that number varies by state.

As far as gains go, you will receive a 1099 at the end of the year so that you can report the income.

hgjjgkj

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Re: Auto Brokering
« Reply #6 on: February 11, 2019, 10:01:55 PM »
I would be interested but why is a broker required? Are the cars shipped overseas?

gpotter

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Re: Auto Brokering
« Reply #7 on: February 12, 2019, 06:33:09 AM »
Yes, the cars are eventually sold globally.

TexasMu

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Re: Auto Brokering
« Reply #8 on: February 12, 2019, 07:09:51 PM »
Thanks for the info Gpotter.   I'll let you know if I do anything !

brandonw

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Re: Auto Brokering
« Reply #9 on: February 13, 2019, 08:43:26 AM »
Iím interested. PM coming

solon

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Re: Auto Brokering
« Reply #10 on: February 13, 2019, 03:00:35 PM »
Why can't the luxury auto broker buy directly from the dealer? Why do they need you?

Dave1442397

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Re: Auto Brokering
« Reply #11 on: February 13, 2019, 04:33:12 PM »
Why can't the luxury auto broker buy directly from the dealer? Why do they need you?

There are cars that are worth a lot more in places like China and the Middle East than they are in the US. Dealers know that there are auto brokers buying these cars and shipping them overseas immediately at a nice profit. If they think you're an auto broker, or working for an auto broker, they may not sell you a car at all.

Have a read of this guy's story - https://www.caranddriver.com/features/a21777248/how-i-bought-millions-of-dollars-worth-of-luxury-cars-and-got-blacklisted-by-jaguar-land-rover-mercedes-and-porsche/

gpotter

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Re: Auto Brokering
« Reply #12 on: February 14, 2019, 07:16:35 AM »
Correct

rothwem

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Re: Auto Brokering
« Reply #13 on: February 14, 2019, 10:03:35 AM »
If they're out of the country, what is there to keep them from backing out on the car sale, leaving you holding the (probably 4-5 figure) car note and a fancy car?

gpotter

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Re: Auto Brokering
« Reply #14 on: February 14, 2019, 01:12:11 PM »
There is a contract agreement as their broker that they will purchase the car from you. They also provide the entire down payment, in the neighborhood of 20% or more for the purchase of the car.

rothwem

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Re: Auto Brokering
« Reply #15 on: February 14, 2019, 01:15:24 PM »
There is a contract agreement as their broker that they will purchase the car from you. They also provide the entire down payment, in the neighborhood of 20% or more for the purchase of the car.

They're out of the country though...that contract means nothing if they decide not to pay you. 

BDWW

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Re: Auto Brokering
« Reply #16 on: February 14, 2019, 02:20:25 PM »
There is a contract agreement as their broker that they will purchase the car from you. They also provide the entire down payment, in the neighborhood of 20% or more for the purchase of the car.

They're out of the country though...that contract means nothing if they decide not to pay you.

So the risk is that you end up owning a car that should have a fair amount of equity in it. Certainly a risk, but you should be able to sell it for at least the balance of the note if that were to happen.

Montecarlo

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Re: Auto Brokering
« Reply #17 on: February 14, 2019, 03:43:47 PM »
Is that in the contract, if they fail to pay?  That you have the right to sell it?  I'd hate for their high power lawyers to come back later and ask "dude, where's my car?"

I figure if you document your correspondence well enough and give them a reasonable amount of time to buy the car, you'd do well in front of a judge, but I'd like to have a built in remedy myself.

Montecarlo

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Re: Auto Brokering
« Reply #18 on: February 14, 2019, 03:45:55 PM »
So are these cars sold "black market?"  I don't understand why the distributers wouldn't naturally supply that demand.  Is there something that keeps their costs higher than the brokers, or forces them to set higher pricing?

solon

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Re: Auto Brokering
« Reply #19 on: February 14, 2019, 04:35:26 PM »
So are these cars sold "black market?"  I don't understand why the distributers wouldn't naturally supply that demand.  Is there something that keeps their costs higher than the brokers, or forces them to set higher pricing?

I believe what keeps distributors from supplying the demand themselves is the high tariff China places on new cars. This scheme only works because once you buy the car, the car is now "used", and not subject to the tariff.

gpotter

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Re: Auto Brokering
« Reply #20 on: February 14, 2019, 05:32:57 PM »
The company is located in California, not over seas. That should add a layer of protection to you as the broker. If they fail to purchase the car from you, then youíve got a high valued car with at least 20%equity in it. My thought was that I could sell it at the remaining balance and walk away if the deal went south.
The cars arenít black market sold, but the are selling them Ďusedí to avoid tariffs. I donít see it too differently than selling tradelines and at $3,000 per deal itís hard to pass up.
« Last Edit: February 14, 2019, 05:39:23 PM by gpotter »

Mississippi Mudstache

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Re: Auto Brokering
« Reply #21 on: February 15, 2019, 06:11:23 AM »
Why can't the luxury auto broker buy directly from the dealer? Why do they need you?

There are cars that are worth a lot more in places like China and the Middle East than they are in the US. Dealers know that there are auto brokers buying these cars and shipping them overseas immediately at a nice profit. If they think you're an auto broker, or working for an auto broker, they may not sell you a car at all.

Have a read of this guy's story - https://www.caranddriver.com/features/a21777248/how-i-bought-millions-of-dollars-worth-of-luxury-cars-and-got-blacklisted-by-jaguar-land-rover-mercedes-and-porsche/

This was a good article. I'd recommend reading it for anyone curious about the nature of the business and its legal status. I agree with gpotter in that it seems really similar to selling tradelines from an ethical perspective. Tempting as hell, TBH. I'm mulling this over.

PennySaved75

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Re: Auto Brokering
« Reply #22 on: Today at 01:52:09 AM »
From the comments on the car and driver article:

"When I bought my Porsche in 2013,,,they made me sign a paper that I would not sell it overseas for 2 years.  But is it enforceable?"

"If the car gets exported, it gets exported - there's nothing the dealership nor car company can do. But they make buyers sign this along with a large deposit that they will keep for a certain period and returned if the customer can show proof of ownership. These forms/contracts are all signed and notarized by the dealership lawyers so I would say the terms outlined in the agreement are pretty enforceable.

There are always exporters that are successful but legitimate customers do not oblige to this deposit and is fairly a good indicator of buyer vs. exporter."

A few other interesting articles:

https://www.autonews.com/article/20140721/LEGALFILE/307219975/selling-vehicles-for-export-angers-automakers-but-is-it-illegal


https://jalopnik.com/illegal-exporter-ordered-to-pay-dealership-1-6-million-1788654629