10 MIN READ : Chances are if you have always purchased a vehicle the old-fashioned way you may have never heard of an automotive broker. This may even be the first time that you have read the title, ‘automotive broker.’ Without realizing it, my friend, you might have been doing things the hard way. After reading this post, you will understand more about what automotive brokers do and WHY you may choose to use an auto broker over a more traditional route.
What is an automotive broker?
Similar to an insurance broker who would search their database for the best possible insurance coverage and price, an automotive broker works on your behalf as well. Only, in this case, it’s to purchase a vehicle. Like any broker, they can offer you, more options for your budget and specific needs because they have access to a vast database of different vendors.
What are the benefits of using an automotive broker?
The benefits of using an auto broker are plentiful. They indeed offer a frustration-free experience. Let’s break down all the reasons why using an automotive broker is the right option for you.
They save you time – Buying a car can be a lengthy and time-consuming process. You must visit multiple locations, research the vehicle you intend to purchase, look at financing options, spend weekends and evenings when you are already tired from working and other things to find a car. Plus, once you are at the dealership it is rare that you will leave within less than an hour. Most people spend on average a minimum of three hours at the dealership.
They save you money – When you are working with an automotive broker, they have a database of vendors who they work with so like an insurance broker who can shop around for the best price, so can an automotive broker. They can also offer you factory incentives and any other deals that a dealership would be able to offer. Not to mention the money savings of not having to drive from dealership to dealership to dealership.
They bring the vehicle right to your door – This is also a time-saving bonus but one that deserves a separate category because this is an amazing benefit. Using an automotive broker means that not only do they find you the perfect vehicle, they also bring it right to your door upon the completion of the sale. Talk about convenience. You don’t even need to meet with an automotive broker inperson, you call them, arrange your purchase, and they complete the sale and bring it to your door. It doesn’t get any easier than that!
What does an automotive broker do that a dealership does not?
When you are buying a car with a regular dealership, you only have access to their brand of vehicles, perhaps you think you want a Toyota, but in fact, the better option would be a GM product. Auto brokers are experts at what they do, they can provide you with years of experience in the field and have a vast knowledge base when it comes to the right vehicle for your needs. They also think long term, they look at your lifestyle and they base their choices upon a customized solution for you.
Will an automotive broker do trade in’s?
Yes, automotive brokers do take trade-ins, they will do a full trade appraisal of your vehicle when you are ready and in the market to buy a new vehicle. They will offer your trade to other vendors that deal in that brand or dealers that may value your trade higher. A dealership may not offer as much for an off-brand trade in and automotive brokers can offer your trade to their vendors to maximize your savings on a new vehicle.
What about leased vehicles?
An automotive broker can also help you work with a trade in of your leased vehicle or lease a new vehicle. Leasing can be an even more time-consuming process than traditional car buying, and during this process, you definitely would want an automotive broker to help you as you are going to be dealing with getting a new car or vehicle more often than someone who is buying a car outright. What is your time worth? If it’s worth a lot, then see an automotive broker. They facilitate transactions for clients who value their time, who understand time is money and appreciate the hassle free service.
How does an automotive broker get paid?
If you have never worked with an automotive broker before one of the first questions you might ask is, how do you get paid? The answer is that a dealership pays them a referral fee for purchasing the vehicle through them, much like how a mortgage broker gets paid. There is no cost to you beyond the purchase of the car and a licensed broker will not ask you for a fee.
Why would dealerships do this?
Dealerships are continually trying to move vehicles, and it’s not always easy to get them out the door. Buying a vehicle is a time-consuming process, on their end, and there is no guarantee that someone who walks in their door will buy a vehicle. If an auto broker contacts a dealership it is because they already know exactly the car that is needed and they can get the purchase completed faster and easier, not only for our client but also for the dealership. It’s a win-win for everyone involved.
Does an automotive broker offer a warranty?
Yes, an automotive broker will facilitate the purchase of a warranty and would offer the same warranty as a dealership would in any vehicle purchase. They would also offer factory pricing, incentives, special offers, rebates, employee pricing, and cash back programs. It’s the best option for your time and money.
What if you are looking to buy an entire fleet of vehicles?
An auto broker can also help with the purchasing of commercial vehicles for your business. Rather than having to source multiple vehicles to operate your business, an automotive broker will find all those vehicles for you and similar to the option above for busy executives or families, they can deliver the vehicles directly to your businesses warehouse, office or other location.
What if you are looking for an electric car or a hybrid car?
An automotive broker also has access to these types of vehicles. Again, the database of vendors is extensive, and they can search for the specific needs of each client. If purchasing a vehicle that is environmentally friendly, it can sometimes be easier using an automotive broker than going to a dealership because these vehicles aren’t always the easiest to find. The knowledge an auto broker has about electric and hybrid cars is also an excellent reason to use them. With newer technology, it is imperative to get an expert’s knowledge so that you can make the best vehicle purchase possible.
Other benefits of using an automotive broker
Automotive brokers know the ins and out of thousands of different vehicles from a variety of different dealerships. A dealership that sells Hyundai is not going to tell you a Toyota is better for your needs and budget. They also make it their mission to educate themselves on the industry as a whole. They know where things are going and where they have been. They live, sleep and breathe the auto industry.
Are you eligible to use an automotive broker?
If you are an executive, commuter or busy professional, using the services of an auto broker can be a definite benefit. However, as long as your financing is approved, almost anyone can use the services of an automotive broker. If you self-employed or are not sure if you qualify for the service, please be sure to get in touch with an automotive broker today. There may be other private lending options depending on your situation.
What do I need to get started?
To purchase a vehicle through an automotive broker, all you need is:
- A filled-out credit application
- A copy of your driver’s license
- A copy of your insurance
- A void cheque
- A deposit for the vehicle (This is the only money taken on your behalf by an automotive broker and goes directly to the dealership where the vehicle is being purchased.)
How can you get in touch with an automotive broker?
The best way to get in touch with an automotive broker is to call them so they can gather all the information they need to source your vehicle and make sure they are the right fit for your current situation. This much-needed service isn’t widespread so if you find an excellent auto broker, hold onto them tight. They are a valuable resource that can be used multiple times throughout your vehicle buying years.
If we can help you find your next vehicle, get in touch with us today!
Please also leave us a comment below if you have any more questions about using an automotive broker.