Auto Brokering | Car Buying Service
Auto Brokering | Car Buying Service: How Does It Work?
An Auto Broker is a person who uses his/her extensive knowledge of, and contacts within, the retail automotive industry to represent buyers throughout the car purchasing or leasing process. He/she works on behalf of the buyer, not the auto dealership, and can typically acquire any make or model of vehicle. An Auto Broker researches the requested makes, models, options, and colors, and then locates the vehicle that best match a buyer’s criteria. When negotiations begin, your auto broker will use his/her industry knowledge and experience to get you the most aggressive price or lease terms possible.
How Can An Auto Broker Save You Money?
Auto brokers bring knowledge and negotiating skills to the table on your behalf. They know the intricacies of dealerships, financing and buying in a way that the typical car buyer will probably never learn. Usually, these brokers have years or decades of experience in the industry, often on the other side of the desk. Many of them are former salespeople and dealership managers. They know how to wring the lowest possible price out of local dealers because they understand exactly how much money the dealer will make from manufacturer rebates, extras and warranties.
- “Sometimes, the savings you forego could be worth thousands of dollars. The level of expertise you need to get the best deals may not be something you can learn in a weekend.”…..”You need to understand lease rates, bank shopping, the dealers’ buy rates, the cost of their money … If you’re really diligent you could do it, but any good broker would know all of that stuff.”
- A good auto broker can also save you time and frustration. Most buyers spend at least half a day on the car lot, haggling over the automobile they want. First, you haggle with the salesperson, and then, once you have worked the price down to perhaps $500 above invoice, you move on to the finance and insurance office. An auto broker can do all of the hard work on your behalf and often drop off the car along with the completed contract for you to sign in less time than you could have worked it out yourself.
Auto Brokers can help you find any of the following:
- New Car Purchases : This is the most popular assignment auto brokers take. One of the great advantages of new car brokering services is that they can usually get you the specific color, upholstery and factory-installed features you want on the model you like. Dealerships often charge extra for these services or claim that the automobile you want is impossible to find in the color or specifications you have in mind, simply because they don’t carry it themselves. On Average a broker can save you 15% off. This is by working with specific key individuals, per dealership.
- Car Leases: Leasing is more confusing than buying for many shoppers. The vague terms and tiny details of the leasing contract include hundreds of opportunities for you to spend more than necessary. Many Auto Broker companies offer leasing services which are able to Locate – Negotiate – Deliver the vehicle right to you. An Auto Broker works for the client not for the dealership. Some Broker may charge a fee upfront and/or receive a commission from the dealership. You may hear many negative things about an Auto Broker but most of that information is not True.
- Used Cars: Used car brokering is less known than new car buying services, but it can be even more useful. The dealership margin on used car pricing tends to be wider than new car pricing, which leaves more room for a good used car broker to find you an amazing deal. Another advantage is that used car brokers often charge only a percentage of the amount they save you on the deal or a flat fee before after the deal is done. Which means they work hard to get the best price possible to make sure they make you a happy client. You and the broker win from an amazing deal.
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 dealership lots, an activity which most people find to be less than desirable. Auto Brokers are essentially professional car buyer agents, the entire sale process is typically seamless and straight forward. On average an Auto Broker deal will take 30 minutes, compared to 8-10 hours at a Dealership. Restrictions May Apply.
- Negotiations – Saving Money
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 into the total cost of the car, the consumer still usually ends up saving money on their purchase. On Average a broker can save you 15% off. This is by working with specific key individuals, per dealership.
- 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. With an Auto Broker you are treated better then someone who is not represented by an Auto Broker.
- Peace of Mind – Buying with Confidence Buying with Confidence