If you’re looking for a new car, then you may be tempted to find a good deal on your own. And with some research and perseverance, you may be able to. However, between narrowing down your options, dealing with the salesperson at the dealership, and then working out the financing and insurance options, it may be better for you to use an auto broker in your car search.
Let’s talk about what an auto broker does, and how one can save you some serious money when buying a new vehicle.
What exactly does an auto broker do?
An auto broker is much more than a “middle man” between you, the customer, and the dealership. An auto broker can do all the “heavy lifting” for you in terms of research, negotiations, and even paperwork. So how does the process work?
First, the broker will meet with you over the phone or in person to find out the type of vehicle you’re looking for. Of course, the more details you share with the broker, the easier it will be for them to find your perfect match. If you’re unsure of exactly what you want, you can always do some research on your own before reaching out to the broker.
After the broker understands your specific preferences, they’ll work on presenting you with several options. Brokers are often well-acquainted with local dealers, and may be able to get great leads that aren’t available to the average consumer.
Once you decide on a car, the broker can “represent” you in negotiations with the dealer. Auto brokers know the intricacies of dealerships, financing, and buying on a much deeper level than most well-informed car buyers who haven’t worked in the automotive industry. In fact, many brokers are former salespeople, managers, and dealers themselves.
Finally, once the negotiations have been finalized, your broker may deliver the car right to your home.
How can reputable auto brokers save you money?
Simply put, an auto broker can save you money because they understand the ins and outs of the auto sales industry. For example, they can negotiate the lowest possible price from a local dealer because they understand the profit margin that the dealer will make from warranties, extras, and manufacturer rebates.
An auto broker can also be an invaluable asset when it comes to handling the dealership’s finance and insurance (F&I) office. F&I agents can manipulate insurance rates, hike up the cost of extras and warranties, and do other things to recoup any hard-won discounts given to you by the salesperson. However, a knowledgeable auto broker can navigate those “treacherous waters” and make sure you get a fair deal, not only on your car but also on your car insurance.
What other help can an auto broker provide? Besides the Car Buying Process
For many people, one of the best services that an auto broker can possibly provide is handling their negotiations at the dealership for them. No one enjoys spending hours at a dealership, haggling over a car’s price to get the best possible deal. Enlisting the aid of an auto broker allows you to completely bypass that step.
Plus, an auto broker can make your overall car search exceptionally convenient and stress-free. Some auto brokers even offer at-home delivery services, trade-in brokering, and customization options.
Can’t you handle your car search on your own?
Of course, that’s an option. Some people shy away from using an auto broker because of the fee associated with their services. They feel that they can “do their own legwork” and get a good deal without hiring a third party.
However, if you choose to go it alone, you could miss out on significantly bigger discounts that an auto broker could negotiate. In fact, you could potentially miss out on thousands of dollars in savings!
Think about it: to successfully negotiate a great deal on the car you want, you may need to learn about lease rates, the dealers’ buy rates, and many other areas of the auto sales industry that you may not be familiar with. Obviously, it will save a lot of time (and may also be more cost-effective) if you hire a broker to do all that work for you.
How can you find the right auto broker for you?
Not all auto brokers are “created equal.” For instance, some auto brokerage services specialize in certain vehicle types, while others provide general assistance with all makes and models. Some auto brokerage firms cover a large geographical area, while others have in-depth knowledge of local dealerships. And of course, some auto brokers are more reputable than others. So the question is, how can you find the right auto broker for your car search?
If you want to pay the lowest possible price for your vehicle, then you’ll need to do just a bit of digging into your auto broker options. Here are some tips on what to look for in an auto broker:
- Works for a flat fee, the amount of which will depend on the quality of the car you’re looking for; or…
- Receives a percentage of your savings under the Manufacturer Suggested Retail Price (MSRP)
- Is locally based, and has good working relationships with reputable dealers in the area
- Offers home delivery services, customization options, and trade-in brokering
- May charge a lower fee if they finish a deal that you’ve already initiated
- Has a good reputation, both locally and online, including reviews and testimonials from previous customers
If you live in California, then AutoSwiftly checks all the boxes for a reputable, hard-working auto broker that will negotiate on your behalf, and get you the best possible deal on your new car. We have years of experience in negotiating great deals for our clients, and are always 100% transparent – when you ask us a question, you’ll get an upfront answer.
Reach out to our team today to learn more about the services we offer, or start the process of finding the right car for you at the right price.