Mechanic designated for PPI snatching deal from broker
 

Dear fellow members,

it seems I may have found the right car for myself, which would be great, but now I find myself near the center of an ethical conundrum:

The broker got photos off the owner, placed an ad on his behalf, to which I responded, and we talked on the phone several times.

I don't know about whether the owner and broker had a legal agreement and how transparent it all was (in fact, it seemed a bit intransparent to me).

The owner had uploaded a whole bunch of photos. I managed glean the name of the independent Porsche mechanic (who shall remain unnamed for the time being) who'd serviced the car from one of them.

I called him up and after he confirmed that the car was good, I agreed on a price with the broker pending PPI, for which I designated said mechanic (I know some would insist on someone who hadn't been involved with the car before).

Today I find out, that the car checked out fine, the price remains the same, but the owner, upon bringing the car over, has transferred the deal to his old mechanic.

The broker called me up later on and is understandably unhappy about the situation.
I have subsequently written to the mechanic stating that I believe the broker deserves (at least) a cut of the profits.

Any more I can/should do short of naming the mechanic?
What's the broker's position?

Interested in your opinions
Daniel

Don't know that it really is relevant to you unless the price has now been jacked up. It's between the seller and the broker. He could have fired the broker for any number of reasons. Not really for you to get in the middle of unless there is more to the story that you aren't telling.

It depends on whether there was a contract between the seller and the broker.

If the seller had signed a consignment agreement with a licensed dealer serving as the broker (even a verbal or informal written agreement, depending on state law), the broker could have legal recourse -- particularly if he was managing the client (you) who ultimately bought the car.

How likely is that? Probably not very -- the cost of pursuing the case outweighs the probability of restitution for the broker. But he could possibly create a legal stink if chose to do so out of principle.

But it still kind of stinks, and puts you in an awkward position. I would hear both sides of the story before making a decision, but wouldn't be afraid to walk away.

If there is something that makes this particular car difficult to replace (ie, its not a 1984 guards red Targa), you could always ask to knock $500 off the agreed price due to the shenanigans, and then pay the broker yourself as a sign of good faith.

I'm not sure about the exact relationship the borker has/had with the owner, but certainly they had been in contact and the latter had provided him with the photos and other information about the car.

Paying the broker $500 out of my pocket was the idea that came to me later too.

Only now I'm getting the feeling that the mechanic may not honor his agreement to let me have the car for the same price I'd previously agreed on with the broker.

Now I'm confused. I thought you said the mechanic in effect bought the. Car spoiling the deal you arranged. Now you say the mechanic is going to sell you the car.

If he does, you can then pay. He broker if you chose the ethical path. If he doesn't, you are out nothing and it is between the mechanic and broker (unless you paid for the PPI).

If the mechanic has gotten between the broker-dealer and the seller, he could be in for some trouble, depending on the state.

At least in Texas, I am pretty sure you need a dealers license to sell cars on consignment. In addition to potentially tortius interference, the mechanic may be "curbstoning" -- and if the broker is a licensed dealer, he may well report him.

But all states have different laws on this stuff.

If the Mechanic is trying to reneg on the deal you had agreed to, and you still want the car, your best recourse may be to threaten him with a complaint -- to the Better Business Bureau if he is running a business, or to Johnny Law if he is operating as an unlicensed dealer. You don't have to be aggressive, just suggest you question the ethics and legality of his business practices, and give him a chance to remedy it.

But again, the whole deal sounds like too much drama for me.

My limited experience with people selling other people's cars on their behalf has never been positive.

Thanks for the replies.

@ Matt Monson: my main objective is certainly not to get screwed myself, but I don't wish for other parties involved in the deal to get screwed either.

@mreid: No, the mechanic agreed verbally to let me have the car at the price I had previously agreed on with the broker, only that it would now be between me and the mechanic and the broker wouldn't see a cent.

A later communication by the broker suggested, that they now planned to reneg on the deal with me too, and would remarket the car to another bidder.

I doesn't appear as if the owner fired the broker, but rather, that the mechanic saw a deal by muscling out the smaller guy.
I received another mail from them later, in which they were starting to think of reputation, and I'm going to call them now to see, what's the latest.

The discussion here has armed me to better watch out for my own interest and that of the broker guy too (in a non-aggressive fashion - thanks COLB :-).

Daniel

Its amazing that people will sell their integrity for a few hundred bucks.

But if they are willing to, I think your obligation to protect their identities is forfeit -- particularly for the mechanic. His business practices are relevant to the Porsche community.

Its not about spite or retribution -- just full disclosure that allows consumers to make informed decisions.

Good luck!

I do some 'matchmaking' between shoppers and sellers, and I always expect that the seller can decide to "hotwire" the deal and bypass me. But it has never happened. Contracts, threats of legal action, etc. are worthless. If you are not dealing with honorable people, that stuff likely hasn't mattered to them for years. I operate on a handshake and with both parties knowing I'm getting a finder's fee (and I make it a small fee, since it's only supporting a hobby).

I have heard of mechanics grabbing PPI cars for themselves and/or screwing up deals by throwing out different numbers as their guess on market value. Needless to say, those folks don't get my recommendation for PPI.

But one other PPI no-no is using a mechanic who the seller (or broker) has a relationship with. Unless I know the shop has more integrity than agenda, I avoid them.

If it is accurate that the broker was going to reneg on you anyway, then you have absolutely nothing to be concerned about regarding his getting paid, IMO. He got screwed before he could screw you. Karma works sometimes. :D It is his problem now, not yours. However, like others have said, if it becomes a legal mess, it is probably better to walk then to get entangled, especially if it is not some special car.

To much drama.Just walk away.

Since they both tried to screw you, you now no longer have an "ethical conundrum". Just try to get the car any which way you can, go straight to the seller.

Sounds like a messed up situation. Unless the car is EXACTLY what you want, I would probably walk and list the names of all parties involved. Clearly my assumption that the seller was likely the only shady one in the deal was incorrect.

Talked to the guy from the shop who says they have ascertained that the broker did not have a proper authorisation to broker the car nor did he possess the required license. So a potentially legal issue became "only" an ethical one.
They were still sufficiently concerned for their reputation so that they are writing the broker a cheque for his time and effort.

As far as I'm concerned they say the deal is still on, and if all goes to plan, my search may well be over -for the time being- thanks very largely to the generous advice I have received from members of this forum either personally, or from perusing old threads.

Daniel

Then by all means list the name of the "broker". You will be protecting fellow Pelicans.

Sounds like the shop made good and there's no need to "out" them.

These "brokers" are often unscrupulous flippers who collect photos of cars for sale and offer them all over the place at a price that will leave them some profit. They often have no deal whatsoever with the actual owner of the car and only have the photos because they presented themselves as potential buyers. Now they take the photos and try for a quick flip. I can't tell you how many times we've seen photos of our cars that were emailed to somebody as a car the "broker" had for sale.

If I were in the middle of this cluster, I'd call the owner, tell him I will only deal directly with him, and if he feels obliged to give anybody else some of the money, let him be that guy. It's just not your responsibility. And remember, "brokers" are flippers without even making an investment, and they deal with fallen deals all the time. - Matt