What is an Auto Broker and Should I Use One When Buying Cars?

Although auto brokers are banned in several states, an auto broker can definitely save consumers the time and hassles of negotiating with a car salesperson when buying a car. An auto broker essentially eliminates the commissioned car salesperson and is defined as a business or individual that acts as your agent in the act of purchasing or leasing a car through the auto broker's car dealership contact network. Many car dealers are willing participants in this type of selling process, as this method is another stream of income for the car dealers.

What Are The Benefits Using an Auto Broker Instead of Purchasing From the Dealer?

Many consumers like to deal with auto brokers when buying a car because they can work in whatever timeframe you desire, whether that is a few days or less or a few months if required. With regard to how the auto broker process actually works though, the consumer generally tells the auto broker what makes and models of vehicles he or she is interested in. Using this information as a guideline, the auto broker then contacts various participating car dealers. The dealers then inform the auto broker what vehicles they have in stock that are close to what his or her client is interested in and at what price they will sell those particular vehicles for. In essence, the car dealers are bidding for the consumer's business. In many cases, the car dealer's offer may only be a few hundred dollars over the dealer invoice price of the particular vehicle being sought.

The auto broker will, of course, inform the consumer of any rebates and factory incentives available on new cars. Most auto brokers can also aid consumers with unloading a trade in vehicle and offer other financing information and paperwork help if consumers request the same. The car then can be picked up at the car dealer or the car can be delivered to a local dealer or straight to the consumer's door if he or she is willing to pay a little more.

How Do You Choose a Reputable Auto Broker When Purchasing a New Car?

It is extremely important that consumers choose a reputable auto broker when purchasing a new car. Unfortunately, there are many auto brokers that are paid by car dealers and there are even some auto brokers that are paid by car dealerships and charge consumers as well. These types of auto brokers definitely do not have the consumers' best interests at heart. Consequently, when "shopping" for an auto broker, consumers should ask them directly if they do receive incentives from car manufacturers or car dealers. One should also find out if they belong to organizations that adhere to strict regulations regarding the car lease or purchase of vehicles. The "Association of Automobile Buyers Agents" or the "National Association of Buyers' Agents" are two such associations. Another way to determine if an auto broker is a good one is through personal recommendations of course.

Overall then, if consumers wish to save themselves the time and hassles of learning how to negotiate with car dealers, choosing to do business with a broker is a logical choice provided that the auto broker comes with excellent credentials.