More and more consumers are finding themselves looking for professionals to buy their car for them due to lack of time and for the most part, lack of patience. The automotive industry has noticed this shift and has been quick to create a solution that ensures the consumer gets what they want at ease.
Auto brokers are the professional individuals who will gladly take on the headache, if you consider it to be one, of going through endless negotiations and buying a car for you on your behalf … at a fee of course. It is business after all.
Difference between a car dealer and car broker
People often get confused with who car brokers and dealers are and if at all there’s a difference or it is one and the same person.
They are different and in summary, a car broker is a professional who offers you the option of letting go and taking a back seat during the car buying process. Good brokers will always aim to secure a good deal for you that will save you money, time and give you peace of mind.
A car dealer on the other hand is basically a salesperson at a car dealership, who guides you into buying a car of your choice from that dealership. They work for the dealership and so theirs is to bring in more sales for the dealership. If you aren’t a good negotiator and decide to go through the buying process alone, then more often than not, you end up with a bad deal compared to if you trusted a professional broker to help you.
Advantages of choosing a broker
There are several advantages that come with finding the right broker to work with; one who you can guarantee has your best interest at heart. Some of the advantages are:
Time and money
A good auto broker will save you time and money because they take on all responsibility that comes with buying a car, from start to finish. They save you the trouble of having to go and use your barely there negotiating skills with pushy salesmen who just want to seal a deal quickly and leave you reeling over all the hidden prices they made you sign off on.
Brokers protect you from these hidden costs and any advantage that the dealership may want to have over you. They are well versed with how that industry works and therefore aren’t fazed by such harassments; most brokers were former salesmen.
Added to this, a car broker will ensure that they do their research thoroughly, going through different dealerships and contacts they have, just to make sure they secure the best possible deal for you, that will save you money. They have better bargaining power and get better deals than any layman possible can.
Buying a car from a broker exposes you to more brand and car options. Dealerships have limited cars in their showrooms and so this could also limit your choices. However, should you choose to buy through a broker, they are able to access dealerships all over the country until they get your specific car.
If you are undecided as to what you want to buy, then your broker will help you go through all possible brands until you find what it is you’re looking for.
If you are working within a budget, then you are guaranteed to get the best car within your budget and it might surprise you that after buying your car and paying your broker, you still save some money.
Since most of them are former salesmen, they know how much dealers have invested in each car in the dealership, how long the said car has been on the lot and more so how much profit the dealers would be willing to forego just to sell that car.
This is information you wouldn’t normally have if you were buying a car alone. They make sure to give you all the information necessary about the car you wish to buy and offer you more options that would work even better for you, but that are still within your budget.
Best interest at heart
Working with a professional broker makes feel secure and wipes away any doubt or uncertainties with regards to where you getting the best possible deal. Brokers have your best interest at heart and work with that in mind, protecting you from any fraudulent deals. They are independent meaning they do not have any affiliations with certain dealerships, manufacturers or firms and don’t have to meet anyone else’s targets but theirs.
A broker will exhaust all options to get you what you want, even if it is a hard-to-get car with the specific color, model or any other specifications you might have. They have access to national databases where they can access inventory from private sellers and know when there are new car dealers. They are aware of discounts, rebates and the best add-ons which will work well for you such as extended warranties, vehicle protection plans, etc.
If you have bad credit and are worried about the financingof your car, then worry not because a broker has so many networks among them being lenders. He can be able to negotiate for you the best method of financing that won’t leave you living in your car.
Peace of mind is something you will greatly appreciate knowing everything is taken care of. You can comfortably go on about your business having one less task to worry about.
Choosing a Broker
It’s always good to ask for recommendations first from sources you fully trust such as friends, family members and your mechanic if you have one.
Avoid looking for brokers who are not independent. This is because they will tend to suggest cars from their affiliate dealership and won’t be bothered to extend their search beyond that. They are guaranteed commissions if they can get someone to buy from their affiliate dealerships. Most independent brokers are in small offices with countable staff members and ask for a flat-rate broker fee for their services.
Ask for a license since they are supposed to be registered with the State in which they serve. If they are not licensed, then that should be a red flag because it could signify they are avoiding the law for one reason or another. Ask for any other special certifications which they may have.
Always do a thorough background check on the person you feel could be your broker. The responsibilities you are about to handover are not to be taken likely so be thorough in making sure you look at all the customer reviews from former clients he/she has worked with. Don’t overlook this.Ask for a few referees and call to make sure that they check out.
Make sure you do your research concerning pricing to avoid overcharging on the car that you wish to buy. It doesn’t hurt to have some prior knowledge to avoid falling victim to opportunists after your money.
Ask for the customer benefits you will receive upon hiring your broker and lastly make sure you discuss the terms of payment before any work can officially begin.
Basically, ask as many questions as you and get to know and understand the individual you could be signing on to help you.
Flat Fee Vs Percentage Charges
There are ways in which you can pay your broker; paying a flat fee or percentage charges. Depending on the type of car you want, the flat fee is between $200 and $1,000. The fee is dependent on whether you want a new or used car. Used cars will require a lot of research and digging to find and this makes the flat fee rate more than it would be for a new car.
Percentage charge is the percentage the broker will charge, of the money that he/she will save you on a car deal. If for example, a car was selling at $50,500 and you paid $40,000 instead, the broker will charge a percentage of the difference, $10,500. They often use Kelley Blue Bookor Edmunds to get the value of a new or used vehicle. If you can, always go with a broker who charges a flat fee because you’ll get a better deal that way.
If you have been ready for your dream car to come home, be it a used or new car, and have been wondering just how to go about it with work and the responsibilities you’ve got lined up, then a broker is the solution you’ve waiting for.
There are many advantages of buying a car from a broker as we’ve seen and yours is to do your due diligence in finding a broker whose professional background checks out and simply wait for your car to get home. Here’s a link to check out for more information: