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Old 16-09-2018, 09:11 PM   #240
PG2
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Default Re: Will the Holden brand survive?

Quote:
Originally Posted by GO FURTHER View Post
So I guess the way around this would be for the new car supermarket broker to buy the demo cars at trade price from the partnering dealers, then sell them off as used, when new models are released.
That way the dealers no longer officially own them so can't be guilty of displaying them outside their assigned regions.
The issue you have with brokers is that they have to buy the cars off dealers anyway. Brokers buy cars off dealers at effectively retail/ABN/small business prices. Unless something has changed, car makers don't give extra dealer bonuses for car brokers.

As a result, brokers work on very small profit margins. They can't very well advertise to come to them to get a great deal and then charge much more than a dealer would.

Because car brokers work on such small margins they would not be able to absorb the costs of having half a dozen demos sitting out the front depreciating. They also would have to pay someone for all of the associated costs of detailing the cars and general maintenance.

Then there would be the added cost of staff organising test drives etc and spending time with the clients going through all of the features within the car. You would also have to spend money on training staff in product knowledge (let's not get into the argument of the standard of product knowledge that current salespeople have).

Not trying to burst your bubble mate but if this was all possible and there was a dollar to be made there would be plenty of ex-car dealers/salespeople out there doing it.
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