What Does an Auto Broker Do?
An auto broker is a professional who does all the "legwork" to find the vehicle you are searching for and who helps you complete the transaction. Auto brokers work exclusively for a buyer, usually not a dealer, and it's the buyer who pays them.
Most auto brokers meet with buyers on the phone or in person to gather the information required to find a vehicle for you. The more details you provide, the more likely you will get the exact vehicle you are searching for.
The auto broker will likely ask for specifics about the type of vehicle you want to narrow down the options. While the broker can do it all, you should narrow down what you want as much as possible.
Once the broker knows what you are searching for, they will hunt for the best options.
Who Does an Auto Broker Work For?
Most brokers mainly work for the buyer. The goal of auto brokers is to help customers get the vehicle they want for a great price. In some situations, brokers will even sacrifice the dealer-paid brokerage fee to help clients get the best price.
Sometimes the auto broker may receive compensation from the dealer and customer.
Just make sure the auto broker you hire is transparent regarding their fees.
How Much Does An Auto Broker Cost?
An average amount you can expect to pay is between $400 and $800 (but this varies from one broker to another).
However, since the professional will help you save time, stress, and potentially thousands of dollars on a vehicle, most people agree this nominal fee is more than worth it.
While hiring an auto broker may sound like an amazing idea, it is important to realize that these services come at a price. Usually, auto brokers charge a flat rate to provide these services.
How Can I Save Money When Using An Auto Broker?
If you want to save money on the fee charged by an auto broker, you can help with the car buying process. To do this, start to search for the vehicle you want. You can look online for different owners or dealerships offering new and used vehicles that you want. Once you find someone, you can give the broker the information and have them handle communication and negotiation.
Using the services of a car broker to get a good deal on a lease for a vehicle is also beneficial. Leasing a vehicle can help you save money now and down the road. The process to use the services of this professional is the same no matter if you buy or lease.
Why Use the Services of an Auto Broker?
Hiring and using the services of an auto broker provides several benefits. These include:
An auto broker can help car buyers save time and reduce their effort into searching for the vehicle they want. Today, most people don't want to visit multiple car lots and deal with the sales staff. Since auto brokers are professional car buyers, the entire sale process is usually straightforward and seamless.
Auto brokers have relationships with car dealers. Because of this, they can leverage these established relationships to help you get the best price possible on the vehicle you want. If you were to try and purchase a vehicle without the help of an auto broker, it would be much higher, and without the incentives, they can secure.
Get What You Want:
Hiring an auto broker means receiving preferential treatment during the entire buying process. In fact, as a car buyer, you are privy to many more perks that aren't available to the general public. For example, if there is a waitlist for a high-demand vehicle, an auto broker may be able to get bumped to the top, helping you get the vehicle you want sooner.
Buy with Confidence:
When you use the services of an auto broker, you have peace of mind that you have a professional advocate behind you, helping you with the buying process. This means you don't have to worry about the potential of deception, fraud, or other issues seen in the auto industry today.
Who Can Access the Services of an Auto Broker?
Anyone ready to purchase a vehicle can hire and use an auto broker. In the past, auto brokers were known for only serving the higher-end vehicle market, including luxury vehicles; however, they will work with anyone ready to buy a new car today.
Some auto brokers also work with entire fleets for corporations. They can tailor their selection to a single consumer or an entire company. No customer is too big or small for modern auto brokers to serve.
What Services Do Auto Brokers Provide?
When you hire an auto broker, it's like having a personal assistant for your car buying needs. Most people don't like the car buying process.
This is where the auto broker comes in. They provide a no-hassle, stress-free buying experience that minimizes the need to haggle and negotiate. It also keeps you from having to go to one car dealership showroom after another to find the vehicle you want.
You can work, sit at home, or even go out; with peace of mind, the auto broker is actively searching for the vehicle you want and negotiating a fair price.
When a vehicle you may be interested in is found, regardless of if it is an Acura, GMC, Chevrolet, Dodge, or something else, the auto broker will arrange for you to take it for a test drive.
During this test drive, you can determine if you want to move forward with the purchase and search for financing options or have the auto broker continue searching for other options.
What Should You Look Out for When Hiring an Auto Broker?
It's important to note that most auto brokers are former salespeople. That's how they know the "ins and outs" of the business and why they have established relationships with dealers. However, these individuals work independently, which is where the fee comes in.
It's best not to use the services of a broker who says they will work for free. In most cases, these individuals are working for a dealership, which means they will not look out for what's in your best interest. It also means you probably won't get the best price on the used or new vehicle you ultimately purchase. Take time to research the options when searching for an auto broker.
Is Using an Auto Broker an Absolute Necessity?
The short answer is, "no." Thanks to the internet, it is possible for any prospective buyer to find the information needed to get the right vehicle and a good deal. You can even research factors like trade-in value and find financing options if you have bad credit. The drawback is all the options. From the Hyundai Sonata or a Ford F-150 to a new Nissan or used Infiniti, the choices are often overwhelming.
It takes a lot of time and patience to find a vehicle to purchase. While this is true, it will save you the cost of the broker fee if you handle the process on your own.
Is an Auto Broker Right for Your Car Buying Needs?
The services of an auto broker may not be right for everyone. While this is true, they do offer some benefits. Review the information above to see why hiring an auto broker may benefit your situation. Ultimately, it's up to you if you want to rely on their services to help you find and purchase a new or used car.