Brokers, the law and OEM's??

gregg hayim

Hey guys- just a quick question i was hoping to clarify. Obivously in the north east, brokering deals at stupid numbers is something we dont have much choice in having to deal with- but I was hoping you guys could chime in...first of all, i know technically its legal. However, I also know that certain OEM's have done a better job than others of combating the practice and protecting their brands profit potential etc. Does anyone have any insight you could share on the ins and outs of how this game really works?

Chris K Leslie

In our state I know you have to have a sales license in order to sell new cars. I dont know if it applies to used cars but it seems to detour brokers away from what I have seen. 

mark rask

in our state you have to have a license for both new and used

Jim Dykstra

Laws governing brokers vary from state-to-state. They exist for two reasons; (1) the consistent over supply of new cars (60 days+), and (2) the aversion many consumers have to the dealership purchase experience. Hard for OEMs to govern as most often these sales look like any other retail unit when reported to a manufacturer. 

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