Members receive the results, which include specific vehicles and pre-negotiated prices. When it’s an in-house service, we find they normally have only a landing page with contact form.Īfter having that initial conversation with members who don’t want to deal with the car buying process, they begin their search.Ĭombining their preferences with the amount of financing they are approved for, the auto advisor reviews inventory (if any) and contacts local dealers. The 3rd party providers often have a website which gives a limited selection of local vehicles and a form for requesting a call back. Members may reach out to the auto advisors via phone or email, and also visit in person at a branch to discuss their needs. In our local area, We Florida Financial CU’s Auto Loan Expert and Dade Auto Desk (DAD) at Dade County FCU serve as long-standing examples. Lots of credit unions have their own concierge car buying service. The broker often works in a credit union branch (or administrative office) and can be from a 3rd party vendor/contractor or direct employees (you call them “auto advisors”).Įither way, they bring experience and knowledge of the car buying industry as the credit union’s resident “car buying experts”. The concierge approach is a traditional human-to-human system. The broker is paid by the dealer (they did facilitate a sale) and may also earn a fee from the credit union for the loan acquisition. The auto broker or concierge works directly with members, making sure they get the car they want at a negotiated price while ensuring financing remains with the credit union. Where Do Credit Unions Fit In?Ĭredit unions saw this partnership approach at work and put it to use internally. Combined with financing, this became a profitable arrangement. Since these come from achieving sales goals, they needed someone skilled in “moving metal”. Why? Margins on new cars aren’t amazing, so dealers are eager to earn manufacturer incentives. In fact, besides individual buyers, they also represented car dealers. These auto brokers were the concierge service to dealers. As compensation, they received a percentage of the sale. Put simply: They delivered the best car for the lowest possible price. Take on the “distasteful” responsibility of finding a specific car, haggling to an acceptable price, and ensuring all that pesky paperwork is filled out. These were dealer/sales professionals with lots of experience managing the car buying process. Subscribe Now! Car Buying Services – Two Types Concierge Car Buying Servicesīefore the internet, we had auto brokers. ![]() Get the info you need a couple times a month. They sold shovels, pics, pans, and assorted mining equipment.Īs history showed us, only a few prospectors ever hit that “mother lode”, but those equipping everyone to make the attempt, those providing the “necessary tools”? Well, they did just fine. ![]() These entrepreneurial spirits opened hardware stores at popular destinations. Yet everyone used the same tools in the frantic attempt. The chances of “striking it rich” were minimal. Clever folks watched as these poorly-equipped city-dwellers made the journey and got to thinking. So where am I going with this history lesson? Great question. Without a car buying service to offer the needed “tools”, your members act like those aimless ‘49ers: entranced by the allure of that shiny prize, without much thought of how they might get it. ![]() What they did is a bit like your credit union focusing on the auto loan only. Thousands of people living east of the Mississippi made the journey, with riches on their mind and little knowledge of prospecting, the odds of finding deposits, or the skills needed. ‘49ers (that’s 1849), as they were called, streamed out West with dreams of finding the golden “mother lode”. Let’s take a journey through America’s past. (Last Updated On: September 18, 2023) Car Buying Services: Concierge or Online, Still Necessary Tools!
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |