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How Car Brokers Can Get You a Great Deal
A broker dealer is an auto sales professional who can help you buy or sell a vehicle at a better price than you would be able to get on your own.
Not only can these sales professionals help you to get a better rate on the sale of a vehicle, but they also eliminate the hassle of buying or selling a new or used vehicle through a dealer.
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Brokers do all the negotiating and necessary paperwork for you, helping to reduce the stress of buying or selling a vehicle.
While these sales professionals do charge a fee, any auto brokers that charge a flat fee for their services will typically be more affordable than those that require you to pay a certain percentage. Flat fees vary, but most range from $200 to $1,000.
Some agents will also require you to pay a retainer of around $100 before they will begin to assist you in your search. However, the amount these professionals can knock off your car purchase price often makes their services worth it.
If a car sales broker charges on a percentage basis, the percentage you will pay is typically based on the difference between your vehicle’s Kelly Blue Book (KBB) value and the amount you actually paid for it. If the vehicle’s KBB value was $50,000 and you paid $45,000 for it, you would pay the broker part of the $5,000 you saved. If you assist the broker in searching for the right vehicle, however, you may qualify for a discount.
To find the best deal auto brokers that service your area, it is important to read online customer reviews, compare fees and obtain recommendations from friends and family members before hiring an agent to assist you. To determine whether a broker vs dealer is better for you when buying or selling a vehicle, read on.
What is a car buying broker?
A new or used car buying agent assists you during your search for the perfect vehicle that fits your wants, needs and budget, eliminating the stress of negotiating with automobile salespersons on your own.
Since a car buying agent will usually be a former automobile dealer or salesperson, this type of sales professional knows all the tricks of the trade, helping you to save money on your purchase. Many brokers work locally, but you may also be able to find good brokers that negotiate car prices remotely.
When you work with a new or used car broker, the professional will:
- Search for available vehicles within your price range.
- Locate limited-edition or hard-to-find automobiles.
- Negotiate with dealers to get you a better deal.
- Purchase the car on your behalf (for an added fee).
Before working with a car broker in your search for a new or used vehicle, it is important to verify the agent’s professional license status, background and qualifications, as these requirements will vary by state.
Additionally, it is important to look for independent, consumer-driven brokers rather than those that work for dealerships, as independent agents will dedicate their time to serving you rather than the dealership. Brokers that work for dealerships typically receive commissions on purchases, so their searches and negotiations may be limited.
What is a car leasing agent?
In addition to buying a car through a broker, a leasing agent can assist you if you wish to lease your next motor vehicle instead of purchasing it. Like a broker than helps you to find and purchase a new or used car, a leasing agent can help you to locate available vehicles that fit your wants, needs and budget.
Additionally, a broker can negotiate the terms of the leasing contract and handle the entire transaction on your behalf. In some cases, the broker can even deliver the leased vehicle directly to you.
Negotiating a car lease on your own can be a stressful experience, but a broker eliminates this hassle. If you do not feel comfortable negotiating the price of a lease without professional assistance, a broker can help. These professionals have the skills and expertise you need to get a better deal on your leasing contract than you may be able to get on your own.
When should I hire a broker to sell my car?
Hiring a mainstream or luxury car broker to assist you in selling your used motor vehicle is an excellent option for several reasons. First, a car selling agent eliminates the hassle of showing your vehicle to potential buyers and spending money on advertising as you attempt to sell your car.
Additionally, you may not feel comfortable meeting with potential buyers at your home or another public location, especially if you do not have anyone to accompany you during this process.
Moreover, a broker can help you to get a reasonable deal on the sale of your automobile, especially if you research the vehicle’s KBB value beforehand and use this information as leverage. Selling your vehicle in a private sale could get you more for your used automobile, but hiring a broker simplifies the process and saves you time and money overall.
You may be wondering, “If I choose to sell my car to a broker, what steps must I take?” To sell used car, truck, minivan or SUV to a broker, completing the following steps will help you to score the best deal on your sale:
- Research your vehicle’s KBB value, as this information will help you to negotiate the selling price of the used vehicle.
- Meet with multiple brokers to calculate a fair selling price for your used vehicle.
- Find out whether each broker will sell your used vehicle to a dealer or on consignment.
- Find out how much money the independent car broker will receive from the sale of your vehicle.
- Carefully review all paperwork before agreeing to work with the broker of your choice.
Car broker vs dealer: Which is better for me?
When determining whether a car broker or dealer is better for you, it is important to weigh the pros and cons of working with an agent. For instance, a broker can save you money on the purchase of a motor vehicle while eliminating your need to negotiate a better sales price yourself. However, brokers charge a fee for their services and some receive commissions from automobile dealerships.
Moreover, hiring a sales agent saves you time as well, as brokers eliminate the need to visit multiple car dealerships while shopping around for the perfect vehicle. In most cases, working with a broker is beneficial whenever you wish to purchase, sell or lease a vehicle.
If you are a good negotiator and think you can get a good price for a vehicle, then hiring a broker may not be worth it. However, if you do not like to haggle or simply cannot spend several hours at a dealer talking to a salesperson then hiring a broker may be a good idea.