Cars

SO... WHAT ARE WE TALKING ABOUT WHEN WE LOOK AT AUTO BROKING?

"“CARS... And lots of them! The latest figures show that in the USA there are over 222 million registered drivers (according to government statistics for 2022) and well over 280 million registered vehicles, so the current numbers are probably even higher.”

CARS

Let's start by looking at the facts - and see what's selling now.

Updated - January 2023

The top selling 'NEW' cars for 2022 were:

  1. Ford F-Series
  2. Chevrolet Silverado
  3. Ram Pick-up 1500/2500/3500
  4. Toyota RAV4
  5. Honda CR-V
  6. Chevrolet Equinox
  7. Toyota Camry
  8. Honda Civic
  9. GMC Sierra
  10. Toyota Tacoma

However, in the 'Used Car' sector, the top selling models in 2022 were:

  1. Ford F-150
  2. Dodge Ram Pickup
  3. Chevrolet Silverado
  4. Toyota RAV4
  5. Honda CR-V
  6. Toyota Camry
  7. Nissan Rogue
  8. Jeep Grand Cherokee
  9. Toyota Highlander
  10. Honda Civic
  11. Toyota Tacoma
  12. Toyota Corolla
  13. GMC Sierra
  14. Ford Explorer
  15. Jeep Wrangler
  16. Honda Accord
  17. Tesla Model Y
  18. Mazda CX-5
  19. Chevrolet Equinox
  20. Subaru Forester

What's interesting here is that the top sellers in the used car market haven't changed that much in the last 12 months - with pickups still dominating this sector.

So, what does this tell you? That people's buying habits haven't changed that much - that's what.

In the broking business, it's about knowing what's in demand, what's selling well, and then identifying what the best opportunities are going to be.

It's called... having your 'finger on the pulse'.

And something else you always need to consider is... colors! What's popular and what's not. Remember when white used to be the kiss of death? Not any more - indeed on SUV's in particular, white is the new black!

Always know what moves and what doesn't. For example, over the last 12 months, the 5 most popular colors have been:

  • >  White
  • >  Black
  • >  Grey
  • >  Silver
  • >  Blue

Now... while the models and colors above might not fully reflect what is moving in the used car sector, it is a good indication of the patterns you might find in supply and demand. It is important to think about them when you decide what marques you want to specialise in with your auto broker service, particularly in the volume sector.

The best news for auto brokers is the used car market remains resilient and does not suffer from such big boom and bust periods as the new car market. This ensures there is an almost constant demand for quality used vehicles, both in the prestige and volume sectors.

To summarise...

So, if you want to run your own broking business in the used car sector, it is vital that you know what is moving and what isn't. What makes and models are hot on the new market? Most importantly, how does that reflect what is going to happen in the used car market?

And... with sales of used vehicles for 2022 of around 40 million units, this means that, across the whole US, very nearly 110,000 units a day were changing hands.That's an incredible number being bought and sold each and every day. And you only need to capture a tiny fraction of that to generate a very robust business.

The thing you have to remember is that an auto broker will build their own network of contacts. This business involves you working very closely with buyers and sellers. The trade will determine what is moving, showing you where the demand is. It is then the broker's job to find the supply.

Where do people sell their cars?

These days most people sell their cars online. However, if it is a particularly specialist vehicle, they may also decide to advertise in certain specialist magazines. Many people also still choose to put adverts in newspapers and car magazines - don't forget them when you are looking for sellers!

There are literally hundreds of websites on the internet advertising cars for sale. Today there are also a bunch of 'Quick Sale' sites that will buy any type of car - offering 'rock bottom' prices of course!

Some sellers will put their car up for sale on one or (more likely) several websites expecting it to sell faster. Sadly, this is not always the case. In fact, the reverse can be true. Sometimes doing this can make it harder to find a buyer because the adverts will be 'lost' among hundreds of similar ads.

HOW CAN YOU CAN EARN FROM THE $570 BILLION USA CAR MARKET?

It is actually really simple! You can break down the success of any business into 3 very easy steps:

  1. Find a market where there is DEMAND for a product or service.
  2. SUPPLY exactly what they need... professionally, quickly and efficiently.
  3. MAKE good money from satisfied buyers who will pay you for providing what they want.

The Auto Broking market mainly serves dealers who work in the motor trade. Many of them will work with an Auto Broker if they can't source the vehicles they are looking for in their usual channels of supply. Brokers give them a better chance to source the cars.

If a Broker can identify and offer really good vehicles that a dealer knows they can move on for a profit, you are in a strong position to negotiate a deal!

The more deals you arrange with a dealer, the sooner they will realise how much you can help them. Eventually, they will see you as one of their regular supply channels! Happy dealers may also refer you to other buyers. Just like that, your network can grow really quickly.

Your goal as a broker should be to establish and build your network of contacts with dealers so you know what cars they are looking for. You can be really successful here and make a really good income from Auto Broking. In fact, there are few markets and business models that are as straightforward.

First things first - let's start with a little background information so you can learn more about the Auto Broking business and find out why it could be such an incredible opportunity for you in the months to come.