History
There have been car brokers operating in Australia almost as long as there have been car dealers. Car dealers recognised that some individuals stood out in their circle of friends or community as experts on car buying. The dealers started offering them a spotters fee each time they would bring a customer to the dealership. If the customer bought the car, the broker (or spotter) would be paid.
After some time, a business model evolved where businesses would set up and call themselves motor brokers.
Motor brokers would typically be started by car sales people who wanted a change of lifestyle. They were almost exclusively one-person operations, and operated as de facto car dealers. They would be licensed as car dealers, and fous on achieving the best bottom line deal for the customer.
As the popularity of the Internet increased, the first pure online car brokers appeared around 2003. These car brokers are typified by the lack of a dealer's license, and only dealing in new cars. This minimises the labour component of the business and allows a high level of automation.
In spite of car brokers having been in existence for decades, general public awareness of them in Australia is relatively limited.
Read more about this topic: Car Brokers In Australia
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