What is An Auto Broker?
Most consumers are accustomed to the idea of engaging professional assistance
when it comes to important purchases. For instance, realtors and stock
brokers are routinely used to assist with the purchase of real estate
or investments. These are things that a consumer could technically arrange
on their own, yet many find that it is easier and/or smarter to solicit
Despite the fact that a car purchase is one of the major life investments
consumers make in their lifetime, the concept of using an auto broker
to help arrange the sale of an automobile has not yet become widely embraced
by the general public - in fact, many people do not even know that using
an auto broker is an available option when it comes to making a car purchase.
Below we will attempt to outline some of the key benefits that auto brokerage
services hold for car buying consumers.
What an Auto Broker Does
Quite simply, an auto broker manages the process of buying a car on
behalf of a customer. This includes finding the desired vehicle, negotiating
the price, delivering the final paperwork, and securing financing, if
necessary. An auto brokers job is to help the customer save time and money
in the car buying process.
Why Use An Auto Broker?
Auto brokers offer several advantages for consumers. The following are
a few of the key benefits:
- Convenience - Saving Time
Using an auto broker saves consumers the time
and effort of having to car-hunt at dealer lots, an activity which most
people find to be less than desirable. Because auto brokers are essentially
professional car buyers, the entire sale process is typically seamless
- Negotiations - Saving Money
Because auto brokers have professional relationships
with networks of car dealers, they are able to secure discounted pricing
that they can then pass along as savings to their clients. Even when
the auto broker's fee is factored in to the total cost of the car, the
consumer still usually ends up saving money on their purchase.
- Preferential Treatment - Getting What You Want
Auto brokers ensure that their clients receive
great treatment by car dealers, and are often able to enjoy perks that
are not available to members of the general public. For instance, if
there is a waiting list for a high-demand vehicle an auto broker's customer
may get bumped up toward the top of the list.
- Peace of Mind - Buying with Confidence
Consumers who use auto brokers enjoy the confidence
of knowing that they have a professional advocate on their side in the
car buying process, so they don't have to worry about the possibility
of fraud, deception or other consumer woes that are all to common on
the auto industry,
Who Can Use an Auto Broker?
Any consumer who wants to buy a car can use an auto broker. In the past,
auto brokers have had a reputation for serving the higher end of the car
market (e.g. luxury cars), but most brokers today will work with just
about anyone seeking to purchase a new car, or a late model used vehicle.
What Does an Auto Broker Charge?
Auto broker fees are typically determined either as a flat rate or as
a percentage of the value of the car being purchased - some brokers will
take their fee as percentage of the savings they negotiate for you. Whatever
the pricing model, auto broker fees typically range between $400-$800
dollars (higher for certain luxury vehicles). Most auto brokers get their
fee directly from clients, although some get paid by the dealership.
Even when the auto broker's fee is factored into the total expense of
the car, the end cost to the consumer is usually less than or equal to
the deal they would have got on their own - so minimally, the consumer
gets the service of the broker for no extra cost, and in many cases, saves
money on top of having the convenience that the broker service provides.
We hope this overview has been helpful in highlighting what auto brokers
do, how they do it, and what the benefits are for consumers. If you would
like additional information, please feel free to contact
the AutoHeroes at any time for a free consultation-we'll be happy
to speak with you.