What is an Auto Broker?
Shopping for a new car can be a daunting process if you don’t know what to do or simply don’t want to go through the hassle. You can easily find car-shopping tips online, but we admit, the process can be lengthy. Luckily, auto brokers exist to help you find the car you want and get the best deal possible. But you might be wondering what exactly an auto broker is.
What does an auto broker do?
An auto broker essentially does all the legwork for you when it comes to car buying. They will typically meet with you over the phone or in-person to obtain all the information needed to find the right car for you. The more information that you can give them, the better.
The broker will likely ask you specifics on the type of car that you’re looking for to help narrow down the search, however, if you can narrow it down yourself, the process will be much easier and quicker. We recommend checking out different manufacturer websites or researching information on sites like Motorbiscuit, Kelley Blue Book, or Edmunds, to name a few.
Once the broker knows what you want, they will get to work in finding the right options to present to you. The main advantage here is that auto brokers typically have relationships with dealers and can get good leads on cars and better pricing than most consumers. So they will find the right car for you and handle the negotiations to get you the best price that they can.
It’s all about convenience and simplicity
After the auto broker has found the right car for you, they may be able to bring the car to you in order to do the test drive and finish the paperwork, or you might have to come by the dealership and drive the car and finish the paperwork there. Different states may have different rules, however, what you’re getting is the convenience of not having to deal directly with a salesperson and enjoying a simplified process.
How much does an auto broker cost?
While the whole process might sound like the best idea ever, just know that it does come at a price. Most auto brokers will charge a flat fee for their services, somewhere in the neighborhood of $400 to $800. However, considering they are saving you a lot of time and stress, and will likely save you thousands on a car, that fee can be well worth it.
Is there anything that I should look out for?
Just note that auto brokers are usually former car salespeople which is why they know the “ins and outs” of the car dealership business and have good relations with dealers. However, they do work independently, which is why they charge a fee.
Be careful if you find a broker that works for free, as they might actually work for a dealership and in effect would be working in the best interest of the dealership, not yours. This means that you might not get the best price possible. Always do your research when finding the right auto broker for you.
Is an auto broker really necessary?
Technically, not at all. With the power of the Internet, any prospective car buyer can take the time to find all the information they need in order to get the right car and get the right deal. It does take a lot of patience and time, but it could save you that broker fee if you would rather do it yourself.
But if you just don’t have the time and would rather not spend the extra energy of finding a car and getting the right price that you want, then an auto broker is a great option.