Would you pay for this service?

[flyingwedge]

After talking to several friends and family over the last few months, I'm thinking of starting to offer a new service and I was curious if it was something people would use. Please chime in and let me know if you think it's a good idea or not.
As background, I'm a licensed attorney and CPA. I've also bought many cars (as well as other things). W/o trying to toot my own horn, I've worked for a big law firm as well as as several corporations as an attorney. What I'm trying to say is that I know how to haggle.

Anyway, I know a lot of people are intimidated by the car buying process. The service I propose is "buying" your car for you. Basically, I would be your broker. You would come to me with the kind of car (model, color, year) already decided. You would tell me what you want and I would go about obtaining it for you for the best price possible. This means I would handle the haggling and dealing with the dealership (or 3rd party) -- basically the part most people tell me they dislike the most about buying a car. Based on my experience, I have ways of determining what the dealer paid for a vehicle, thereby allowing me to know what his "best price" really is and making sure I obtain this for you.

If you had a trade-in or a car you wanted to sell, I could handle this as well and make sure you obtain the best value for this asset as well.

As a CPA, I also know quite a bit about finance and credit. If your credit score isn't what it needs to be I can advise you about the best ways to improve it. I can also help you obtain the best possible financing rate for you. Furthermore, we're all aware of the tactic dealerships use of selling you a car based on the payment instead of the price of the vehicle itself. I can understand how this can become confusing, especially when you're in the salesman's office and they're pressuring you and throwing a lot of numbers at you.

The price I envision for this service would be $499. This is all included unless I sell your car to a third party (thereby incurring extra time and expense on my part). In that case, I would charge you a % of the amount I sell your car for (thereby incentivizing me to sell your car at the best price). The $499 would be from start to stop all included.
Please let me know what you think.

[dbacks fan]

Nothing. Don't need it.

[Breadburner]

Thats just what a car deal needs is another shyster in the mix....!!!!!!!!!!!!!!!

[RecycleMichael]

The next car I would like to buy costs around $40K. Your price seems fair to me for that sale.

But if I were buying a car that would sell for half that price, I would say your deal would be too much.

[flyingwedge]

Thats just what a car deal needs is another shyster in the mix....!!!!!!!!!!!!!!!

You've never met me. Why would you call me a shyster??

[dbacks fan]

You've never met me. Why would you call me a shyster??

I won't call you a shyster, but the only way I would have a third party involved in a car transaction is if I was looking to buy a highend car at an auction (By high end I mean collectible or classic car) so that I would not get caught up in the emotion of the auction. I have been able to broker my own deals for $1000 to $3000 off of the price on buying a car, and have not lost my shirt on selling a car. Also when buying, I have had my financing in place before the purchase with a couple of exceptions when I had the cash in the bank before hand. And alot of these purchases came before the internet, and I used NADA books, Hemmings Motor News, and multiple other sources to evaluate my purchase or sale of cars. I just don't feel that I need to pay a third party ~$499 to handle the transaction for me.

Also the "You never met me" sounds like an arrogant statement that an ambulance chasing attorney might use.

[dbacks fan]

Actually, I would rather spend the price of a one month subscription to CarFax or similar type service to check the vehicle history than to pay someone to negotiate for me. You can negotiate all you want, but if you buy a salvage car with a washed title, you're hosed. Also if I were in the market for a car, I would buy one used instead of new (after a check on the car) so I would not take a hit on depreciation. Most cars can lose $3k to $8k or more in the first two years.

[waterboy]

Before I'd pay much attention to posters on here i would pay for a real survey of potential users that was more demographically balanced. We have a lot of...uh... strong egos around here.

There are people in the industry who are ad hoc consultants for wealthy folks who don't have enough time for the process but don't want to get hosed. Its usually a brother-in-law, an employee or a good friend who has experience. Your obstacle, imo, is convincing folks that you actually save them time or money. When it comes to cars, no one really thinks they got a bad deal!

[custosnox]

I think the only way I would use the service is if I was of a lot better financial means then I am.  It would be something for those who have the desire to own multiple vehicles, the finances to do so, but not the time to invest.  It is a service that would seem to be more restricted to the upper class (not too many volume car collectors around here though) and businesses who have, or are building, a fleet.

[inteller]

your business idea is sound but you are in the wrong market area for it.  Okies have no concept of auto brokers or concierges.  Brokers are a big deal in Europe since cars there are expensive even for basic ones. Plus they have an appreciation of getting a car that matches their lifestyle and personality, not just "what is a good deal on paper and $$" ...while in this country people will spend weeks looking for the perfect pair of shoes and then go buy a Kia.  Brokerages are more viable up in the northeast and west coast where people have an appreciation of hiring a specialist to get a car for them since owning a car there is more expensive.  The rest of the country would rather just mail it in and buy whatever crap a dealer has to sell.

I offer this service for free to close friends and family since it can be no more than a hobby for me around here.  Most I ever get out of it is a free lunch and a thank you.  I don't think you can expect much more around here.

[custosnox]

your business idea is sound but you are in the wrong market area for it.  Okies have no concept of auto brokers or concierges.  Brokers are a big deal in Europe since cars there are expensive even for basic ones. Plus they have an appreciation of getting a car that matches their lifestyle and personality, not just "what is a good deal on paper and $$" ...while in this country people will spend weeks looking for the perfect pair of shoes and then go buy a Kia.  Brokerages are more viable up in the northeast and west coast where people have an appreciation of hiring a specialist to get a car for them since owning a car there is more expensive.  The rest of the country would rather just mail it in and buy whatever crap a dealer has to sell.

I offer this service for free to close friends and family since it can be no more than a hobby for me around here.  Most I ever get out of it is a free lunch and a thank you.  I don't think you can expect much more around here.

So what your saying is that the average american is not able to research for themselves and locate a vehicle that suits them on their own?

[nathanm]

So what your saying is that the average american is not able to research for themselves and locate a vehicle that suits them on their own?

The average American isn't very good at haggling, given that it's generally not how retail business is done here. (although it can be done even at most chain retail stores, in my experience) The Internet has made this much easier, of course, since there's somebody at most dealers who provides quotes over email, so you can play dealers against each other very easily now, and do it outside of a high pressure situation.

I asked a guy I know who owns several dealerships about this a couple of years back and he indicated that he doesn't really care if people haggle his sales managers down to invoice, as there are so many other places profit (holdback is the biggie) is built in to the deal that as long as he's selling cars, it doesn't much matter what they go for. He went on to say that the long term customers he has who pop in every 2-3 years and pay MSRP get treated much better when it comes time for service. Free oil changes, discounts on out of warranty repairs and scheduled maintenance, that sort of thing. Needless to say, the hagglers don't get special treatment after the sale.

[custosnox]

The average American isn't very good at haggling, given that it's generally not how retail business is done here. (although it can be done even at most chain retail stores, in my experience) The Internet has made this much easier, of course, since there's somebody at most dealers who provides quotes over email, so you can play dealers against each other very easily now, and do it outside of a high pressure situation.

I asked a guy I know who owns several dealerships about this a couple of years back and he indicated that he doesn't really care if people haggle his sales managers down to invoice, as there are so many other places profit (holdback is the biggie) is built in to the deal that as long as he's selling cars, it doesn't much matter what they go for. He went on to say that the long term customers he has who pop in every 2-3 years and pay MSRP get treated much better when it comes time for service. Free oil changes, discounts on out of warranty repairs and scheduled maintenance, that sort of thing. Needless to say, the hagglers don't get special treatment after the sale.

Haggling is one thing, and I think it is becoming a lost art, but what inteller seems to be getting at is that most people are ignorant and incapable of actually making a good decision for themselves, and thus need someone to take care of them. 

[inteller]

Haggling is one thing, and I think it is becoming a lost art, but what inteller seems to be getting at is that most people are ignorant and incapable of actually making a good decision for themselves, and thus need someone to take care of them. 

uh yeah pretty much, just look at the state of this country.

[inteller]

I asked a guy I know who owns several dealerships about this a couple of years back and he indicated that he doesn't really care if people haggle his sales managers down to invoice, as there are so many other places profit (holdback is the biggie) is built in to the deal that as long as he's selling cars, it doesn't much matter what they go for. He went on to say that the long term customers he has who pop in every 2-3 years and pay MSRP get treated much better when it comes time for service. Free oil changes, discounts on out of warranty repairs and scheduled maintenance, that sort of thing. Needless to say, the hagglers don't get special treatment after the sale.

another point for the broker, if he gets a good rapport with a dealer then those same benefits will begin to extend to the customers who use his services.  that sort of thing has to be built up over time though.