Topic: Dealership's Motive

[5 Wheel Drive]

To the OP: just curious, are you using a broker because you want to, or because the insurance company told you to?

When my 1st '09 Forester got written off, the ins co wanted me to go through a broker to replace it.  They could guarantee that I would get another Forester with the Touring pack, but they couldn't guarantee I'd get another grey 5 speed.  If a red automatic showed up on my doorstep, I would have been stuck with it.  And they wouldn't tell me anything about the deal until I agreed to buy the car through them.  I told them to stick it, and I got another Forester myself from same dealer I got the first one from.  There was no issues with that.

You don't have to go through a broker if you don't want to.

[OliverD]

They could guarantee that I would get another Forester with the Touring pack, but they couldn't guarantee I'd get another grey 5 speed.  If a red automatic showed up on my doorstep, I would have been stuck with it.

LOL, that's ridiculous.

[kings10]

No, I thought the insurance company always cut you a cheque for replacement cost and what you did with the money was up to you.  We're replacing a 07 Camry with a 16 Sonata, but could have pocketed the money for all they care.

There seems to a anti-broker bias here.  I'm unclear on how they operate, but I assume that their business model relies on sheer volume and the customer being ready to buy.  The sales people in the broker's network know that they won't have to waste time that they normally would have to if the customer was at the earlier stages of buying and are willing to pay the broker for that lead.  I'm not sure if it is relevant, but the Hyundai person I'm dealing with is the sales manager; no commission paid?  For the costumer, the price has to be decent, otherwise there wouldn't be a space in the market for brokers. 

In my case(s), I asked the broker for a car (trim, colour, options) and they come back with a price.  I agree and then they tell me who to contact and then I buy the car.  I'm not sure how it would work if you asked the broker for say, five or six different cars, trims etc. and then asked for all of the contacts for those cars.   I know when my sister referred me to the broker she used, she said make sure that you only call him when you're sure you're ready to buy. 

[Cord]

So, if a customer wants to drive the blue Camry they are thinking of buying, they are made to drive the brown demo instead?

I thought I was pretty clear.  The customer picks his car of choice and the sales person attaches their personal demo plate. 
For the brief period of time the "new or used car" is been "demonstrated"  it has a temporary plate hanging out of the trunk or tailgate.  If the vehicle goes for an overnight, then the customer is asked to flip the plate back into the trunk so it's not stolen.  No vehicle is assigned as a just a "DEMO".   Much misunderstood term.

A company car is just that, a vehicle owned by the company (dealer), registered with the Ministry.  Driven by ppl insured and named by the company.  Then later sold as a used car, but with additional warranty support from the Distributor.  Although schemes may vary.

Thanks for clarifying. I thought you might be saying that there are specific cars used only as demos. Sounds like we are in the same world. 

[JohnnyMac]

We're just a group of people who would generally not use a broker because we much rather do it ourselves.  The only reason I can see using a dealer for a new vehicle is you don't like doing the car sales "shuffle".  I could totally get why someone might use a broker to find a used vehicle as that's more of a crap shoot, but new vehicle sales are pretty easy to find the model/features you want through any dealer.

[Cord]

It seems to me that a broker that is paid by the dealer is just another salesperson in disguise. I wonder if AMVIC/OMVIC would consider them to be commissioned salespeople and thus require them to be licensed?

[dirtyjeffer]

No, I thought the insurance company always cut you a cheque for replacement cost and what you did with the money was up to you.  We're replacing a 07 Camry with a 16 Sonata, but could have pocketed the money for all they care.

that may depend on when it happened and which process your insurance company does...when my relatives car was written off in an accident a few years ago (4 year old Golf Wagon TDi Comfortline), they received a cheque from the insurance company for the purchase price of their car (about $36k)...they simply purchased a relatively low km Highline model, that was about 5 years old for $18k and kept the change.

i have the same coverage on my plan, but they replace the car, not give a cheque...so if our Sorento gets written off between now and 2021, we would get a brand new Sorento (same trim level) paid for by the insurance company...we wouldn't get a cheque, where we could then buy something older and less expensive and keep the change.

[JohnnyMac]

No, I thought the insurance company always cut you a cheque for replacement cost and what you did with the money was up to you.  We're replacing a 07 Camry with a 16 Sonata, but could have pocketed the money for all they care.

that may depend on when it happened and which process your insurance company does...when my relatives car was written off in an accident a few years ago (4 year old Golf Wagon TDi Comfortline), they received a cheque from the insurance company for the purchase price of their car (about $36k)...they simply purchased a relatively low km Highline model, that was about 5 years old for $18k and kept the change.

i have the same coverage on my plan, but they replace the car, not give a cheque...so if our Sorento gets written off between now and 2021, we would get a brand new Sorento (same trim level) paid for by the insurance company...we wouldn't get a cheque, where we could then buy something older and less expensive and keep the change.

What if they don't make your vehicle anymore, or like your folks, don't offer the same features (diesel engine)?  I'm pretty sure my coverage is the same as your folks, they just cut a cheque and you do with it what you wish.  I think I'd be a bit disappointed if I missed out on car shopping when one of our vehicles gets totalled.

[dirtyjeffer]

What if they don't make your vehicle anymore, or like your folks, don't offer the same features (diesel engine)?  I'm pretty sure my coverage is the same as your folks, they just cut a cheque and you do with it what you wish.  I think I'd be a bit disappointed if I missed out on car shopping when one of our vehicles gets totalled.

i'm not sure...i'm only going by what was told to me...that said, it is a new feature from my company, so perhaps the CS person misunderstood how claims worked...the cheque thing does make more sense (and would be easier for the insurance company to process - they simply cut a cheque and be done with it).

[tooscoops]

when i did my brief stint with volvo, we had designated demos of each car. not that many models, so it was easier. we took those out and they had dealer plates bolted on all the time. so in that case, yes... say you wanted the premium s60 in white with the stereo package on the lot, you were driving the black premium without the stereo, but could at least go listen to the stereo in the white one. I would occasionally send them out in the one they wanted when the deal was all but paid for, but got some grief for doing it.

volvo people were particular... they would want to know who put every km on the car they bought. so easier i guess to just do it that way. then at the end of the year, they would have a "demo" sale on the units with a few hundred kms on them.

again... "demo" is super tricky as every brand, dealer, and branch of apa/omvic/etc. define it differently.

[ArticSteve]

What if they don't make your vehicle anymore, or like your folks, don't offer the same features (diesel engine)?  I'm pretty sure my coverage is the same as your folks, they just cut a cheque and you do with it what you wish.  I think I'd be a bit disappointed if I missed out on car shopping when one of our vehicles gets totalled.

i'm not sure...i'm only going by what was told to me...that said, it is a new feature from my company, so perhaps the CS person misunderstood how claims worked...the cheque thing does make more sense (and would be easier for the insurance company to process - they simply cut a cheque and be done with it).

In Ontario, always a $$$ payment to the policy holder AFTER the Lien Holder is paid off.  Payments are always low balls.  Owners with excellent maintenance and in pristine condition always LOSE.