Car brokers source and negotiate car deals on your behalf. They have experience with dealerships and know all about financing, fees, add-ons, and taxes. With this knowledge, they can negotiate to get you the best deal possible. All you need to do is give the broker your specifications and preferences, and they will locate a car that matches your needs.
Reasons For Hiring A Car Broker
Even though hiring a car broker comes with a fee, there are several reasons to hire their services. Below are some of them.
Finding Your Preferred Car
Finding the make and model, trim, color, and other options of your choice can sometimes be difficult. Eventually, you may end up accepting a car that isn’t actually what you want. Car brokers know exactly where to look to find the car that matches your details.
Cost Savings
Most car brokers are car sales professionals, and some are even former car dealers. So they know how car dealerships operate. They are good negotiators too and know the tactics salespeople apply.
Moreover, they have connections with auto lenders and will be able to find a lender that understands your circumstances. Therefore, hiring a broker can save you more money than when you decide to go through the process by yourself.
Convenience
Searching for a car that matches your needs requires time and effort. You may need to go from one dealership to another and explore every option that comes your way.
Car brokers take this burden from you. Based on their experience with dealerships, they know where to find the car that will meet your requirements.
Peace Of Mind
Most dealerships use several tactics and upselling tricks to make you spend more money on options you don’t actually need. Also, negotiating the price with them can be a daunting task. Car brokers give you peace of mind by handling all the processes. All you need to do is to decide on the car and payment.
How To Use A Car Broker
Find A Credible Broker
The first step is locating a reliable broker. You can find one online, through your local Chamber of Commerce, or through recommendations. Ask for their license and check online reviews to ensure their credibility. You can also ensure their credibility by asking questions and references of their satisfied clients.
Once satisfied, you will need to pay a retainer fee. This fee is different from the final fee the broker will charge for his service. Most brokers charge this fee to ensure your commitment.
Give The Broker Your Specifications
The next step is to name your preferences regarding the car you want. Be sure to give enough details because the more details you give, the easier it will be for the broker to find exactly what you want.
If you don’t give enough details, there is a higher chance of the broker coming back to you with options you don’t like. Examples of these details could be interior materials such as leather seating, sunroof, and more.
Inspect And Test Drive The Car
Once the broker finds a car that matches your requirements, you’ll be allowed to have a look. Inspect, test drive, and get up close and personal as possible to make sure the car is right for you. Once you’re okay with the car, you will need to pay for the car and pay the broker's fee.
Make The Payment
Depending on the broker, you will be required to pay a flat fee or based on a percentage. Fees are usually agreed upon before the purchase and can range from $200 to $1,000, depending on the car. Generally, used cars come with a higher fee than new cars because finding a used car that matches your details requires a lot of work.
If the fee is based on percentage, then it is going to be a percentage of the purchase prices versus value, thus the difference between the value of the car and the price you paid. So if you paid $47,000 for a car that cost $50,000, it means the broker saved you $3,000 hence your fee to them will be a percentage of that $3,000.
A Word Of Caution
Some car brokers are tied to dealerships and receive commissions for passing you on to them. These brokers sometimes charge little or no fee. They also pressure you to buy a particular car from a particular dealership. Beware of such brokers as their interest is not to get you the best deal.
BaltimoreCarBuyers.com never accepts dealer commissions. We work for you, the client, to secure the best deal possible.
Summary
Car brokers save you time and money by handling everything from searching to negotiating with sales staff. It all starts with locating a credible broker and being as detailed as possible regarding your specifications. That said, be mindful of brokers that charge too little or no fees as some are connected to dealerships and may not work in your best interest.
Dustin Hawley -- J. D. Power
Original Publish Date: May 30, 2023
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