Why Use a Car Broker

Executive Summary about New Car Brokers by Matt Pine

New Car Brokers

Does the thought of buying another car cause you anxiety? Well now there is a great alternative to going through the effort of buying a car yourself: car brokers. A car broker specializes in buying cars for their clients. Car brokers know how dealerships work. For example, a car buyer may know the size of a dealer’s inventory, how long certain cars have been on the lot, and when new shipments will arrive. Additionally, car brokers work directly with sales managers, thus cutting out sales people and their commissions from the process.

The process typically starts with a prospective car buyer working with a car broker to determine the buyer’s requirements. Then the buyer pays a retainer fee to start the process, typically around $100. Once the purchase is completed between the buyer and the dealer, the broker collects a flat fee.

The Different Kinds Of Auto Brokers

Executive Summary about New Car Brokers by Joshua Rose

Most car buyers still don’t know if they got a good deal or not even when they’ve finished this chore. There’s basically two different kinds of Brokers. Most Car Brokers work the same way when dealing with new cars. However, there’s often a difference when purchasing a used car.

Auto Brokers for new cars typically contact the Internet Sales Manager and/or Fleet Manager at area Dealerships. Typically, the Broker’s fee is in the $500 to $1000 range. Car buyers can contact the Dealerships directly and negotiate for themselves to save the Broker fee. Brokers often work with the same area Dealerships who then have an incentive to give a Broker an advantageous price due to the likelihood of additional future business.

Using a Broker on the purchase of a used vehicle offers the car buyer some choices. Many Brokers charge the vehicle cost plus their fee (again, typically in the $500 - $1,000 range). Other Brokers guarantee a price, which includes their fee, upfront to the customer before acquiring the vehicle.