Author Topic: Auto Brokering  (Read 4398 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: February 17, 2019, 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



hgjjgkj

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Re: Auto Brokering
« Reply #23 on: February 18, 2019, 03:59:10 PM »
That is a cool article as well. It looks like a lot of the folks who get caught are being very brazen or doing identity or title fraud and that is what gets them into trouble

six-car-habit

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Re: Auto Brokering
« Reply #24 on: February 19, 2019, 11:49:40 PM »
 I read the links provided and I'm wondering , as none of them really addressed this -- At what point did the straw buyer, or the money providing broker, actually title the car ?    If the car hasn't been titled yet before it goes outside the USA , how is considered used ?

 Seems like anytime i or an acquaintance have bought a new vehicle, the selling dealer routes the paperwork thru their backoffice, straight to the DMV, and gives the buyer a temporary paper tag to drive with, until the metal plate and actual registration are sent to the buyer directly, or to the dealer who fowards those items to the buyer.

  Another point i think may be salient here. At least in my state , a buyer will pay sales tax on the purchase price of the car [ minus the trade in value if any ] . Here that tax is roughly 9%.  So now the "straw man" buyer doesn't have 20% equity, but closer to 10%.  A  " brand new" used car is a used car nonetheless, and i as a used car buyer would expect a discount off MSRP if someone els'es ass had been breaking in the seats.  I don't see the "equity safety net" in this situation....

gpotter

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Re: Auto Brokering
« Reply #25 on: February 20, 2019, 06:24:00 AM »
The issue of the title is why financing is used and not cash deals. Apparently, the dealerships were holding onto to titles for awhile with cash deals to discourage this type of action. With the financing, the first payment is made on the note, then the company pays the remaining off and the title is sent to the company. This takes about 5-6 weeks from time of purchase.

six-car-habit

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Re: Auto Brokering
« Reply #26 on: February 21, 2019, 01:17:51 AM »
 Still confused. Maybe it is a quirk of how my state handles titles .

Example -- I , Joe Schmoe walk into Audi dealer with a certified 2 party check for $100,000 dollars. I countersign the check which is drawn on ABC Financing Corp's account.  I pick out an Audi A7 long wheelbase, lets say MSRP is $91000.  I get taxed roughly $9000 on the purchase + cost of registration.  Audi dealer accepts the check of $100,000 .  I am listed as the registered owner on the title.  ABC Financing Corp is listed as the legal owner.  I drive the car away, off the lot, with a paper license plate to some destination . When the lien on the car has been satisfied;  by me , or ABC Corp, or Santa Claus paying off the loan - - then ABC Corp notifies the State DMV that the lien has been satisfied.  The state now sends me a title with Only my name on it,  I Joe Schmoe, am listed as Both registered and Legal owner of the Audi A7.   I Joe Schmoe can now do what i want with the car; keep it, donate it to my favorite charity, sell it to a homeless person for 50 cents...

  OK, say I Joe Schmoe have signed a Contract with ABC Financing Corp , that i will turn the car over to them when the lien is satisfied.  They "pay-off" their own loan.  I am required to sell the car to them, which i do.  The state then charges another, say $8000, this  2nd time in sales tax, as the DMV considers the car depreciated but not worthless, even if i claim to sell the car for 50 cents to ABC Financing Corp [ the luxury broker behind all this ] .   The state gets paid taxes twice on the vehicle in the span of 2 months  ?

edit to clarify
« Last Edit: February 21, 2019, 01:32:29 AM by six-car-habit »

gpotter

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Re: Auto Brokering
« Reply #27 on: February 21, 2019, 06:38:09 AM »
Maybe it is a difference in how states handle taxes. My state charges $500 max in sales tax on the price of the car, so this is kind of a mute point.

Would you get charged taxes if you sold the vehicle out of state? I'm assuming you would, so maybe your state is not an ideal state for this program.

I don't work directly for the company, just act as a broker, so I don't have all the answers.

six-car-habit

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Re: Auto Brokering
« Reply #28 on: February 22, 2019, 01:31:43 AM »
 The taxes get charged depending on where the car will be registered. So when i bought a car from a neighboring state , from a dealer, I was charged sales taxes based on the county tax rate, in my state where it would be registered.

 Thanks for trying to answer my questions. Good luck in your endeavours.