While the prospect of driving a new car is exciting, the process of buying one can be exasperating, particularly if you don’t have sufficient knowledge about buying cars and finalizing deals. Car brokers like eAutoLease can help you navigate deals, even find a rare or specific vehicle with their network of vendors and dealers, and buy your dream car. They use their connections and buying expertise to save you time and money, charging a flat fee or a commission for their services. If you are thinking about engaging an auto broker, visit eAutoLease.com to learn more about buying or leasing a new vehicle, how an auto broker can guide you toward the right decision and how much you will have to pay for their services.
Auto brokers are professionals who act as an intermediary between car buyers and dealerships to help buyers find the specific make and model they want to purchase. Auto brokers have access to a wide range of new and used vehicles through their dealer networks. They can negotiate better prices, trade-in values, and financing terms than consumers could negotiate on their own.
Brokers provide a valuable service for people looking for used or new vehicles. They provide expert advice and even help you figure out the type of vehicle you want, or if you are not sure, come up with realistic options within your budget to ensure you get the best deal.
If you don’t know the ins and outs of buying a car, working with an auto broker is an excellent way to secure a great deal. However, when looking for an auto broker and working with one, you must find out how auto brokers earn their income and what their fees and commissions entail before making a decision.
How Do Car Brokers Get Paid?
Most auto brokers earn a commission for the vehicle they sell or lease. The commission can range from a few hundred dollars for a lower-priced vehicle to several thousand dollars for a high-end vehicle. The exact commission is negotiated between the broker, buyer, or seller. This amount can vary depending on the type of vehicle, its price, and the level of service provided.
Here’s what you need to know about auto broker fees and services before you hire one.
Commission from dealership – Most auto brokers have established relationships with dealerships. It allows them to negotiate special discounts and incentives for their clients. Dealerships pay commissions to the brokers for bringing business.
Flat fees – Some auto brokers charge a flat fee for their services, regardless of the vehicle price or other factors. This fee can range from a few hundred dollars to a few thousand dollars, depending on the type of transaction they are facilitating.
Percentage of the purchase price – In some cases, brokers charge a percentage of the purchase price as their commission. This percentage is usually between 1-3% and can vary according to the value of the vehicle the client is purchasing.
Trade-in commission – Auto brokers can also get a commission from the dealership if they are facilitating a trade-in for their client. This commission is typically a percentage of the trade-in value.
Financing kickbacks – Sometimes brokers also receive kickbacks from financing companies for referring clients to them. These kickbacks are usually a percentage of the loan amount and help brokers earn more.
Additional services – Some auto brokers offer additional services such as arranging transportation, handling paperwork, and providing post-purchase support as well. These services cost more and give brokers a chance to make more money.
Wholesale pricing – Auto brokers often get wholesale pricing from dealers, which is lower than the price offered to the general public. They can negotiate this pricing for their clients, help them save some money, and also earn a commission on the final sale.
Manufacturer incentive – Manufacturers offer incentives to auto brokers if they reach certain sales targets or sell specific models. These incentives are also in the form of cash bonuses or special discounts on vehicles.
Important Facts You Need to Know Before Working With an Auto Broker
Do I have to pay an auto broker upfront?
No. While some auto brokers may ask for an upfront fee, others will only collect their fee after they have successfully assisted a vehicle purchase. You must clarify payment terms with your broker before seeking services and moving forward with the deal.
Are auto brokers worth the cost?
Yes. Auto brokers help you save time, money, and the hassle of negotiating with the dealerships. With their experience, expertise, and industry connections, you can look forward to better deals, which makes their fees worthwhile.
Can auto brokers also help in selling a car?
Yes. Some brokers can also assist you in selling your vehicle, even though most focus on helping you buy one. Share your specific needs with the broker to determine if they offer this service and how much they would charge.
Is it possible to negotiate fees with an auto broker?
Yes. Brokers are usually open to negotiation and are willing to talk about their fees, especially if you are purchasing more than one vehicle or always buy from one broker in particular. Just ask, and you will know if they are willing to negotiate.
Do auto brokers only work with new cars?
Not always. Auto brokers can help you with buying and selling new, used, and leased vehicles. They know all about the market and find the best options for you, based on your preferences and budget.
Is it possible to negotiate car prices when using a car broker?
Yes. You can negotiate the price of a car even if you hire an auto broker. Their expertise and negotiation skills can help you find the right vehicle and secure a better deal.
Do auto brokers also help with financing and insurance?
Yes. Auto brokers can recommend suitable financing options and refer you to insurance providers that best suit your needs. However, it will be up to you to compare rates and terms to ensure you are getting the best deal.
What Is the Right Way to Find an Auto Broker in New York?
Finding a reputable auto broker is essential, and you must do your homework. Look for a broker who is licensed, and has positive reviews and a reputation in the market. You can ask for recommendations from family members or friends who have worked with an auto broker. Checking online reviews or asking for references can also help you find the right agent.
For example, eAutoLease New York’s leading auto brokerage firm:
- Is a member of New York Auto Brokers Association (NYABA)
- Is licensed and bonded in the state of New York (Facility ID No. 7120366)
- Is certified by the National Independent Automobile Dealers Association (NIADA)
- Is licensed by the New York State Department of Motor Vehicles (DMV)
- Is licensed as a Motor Vehicle Retail Installment
- Is licensed as a Secondhand Dealer (License: No. 2095372-DCA)
- Has excellent reputation with over 3000 authentic 5 stars reviews (2200+ DealerRater reviews and 1200+ Google reviews)
Licensed auto brokers can sell vehicles to buyers in any state, online or in person at their office. However, it is necessary to do a little research before you trust any broker. Don’t be drawn by promises of lower prices, and advocacy for your needs. Make sure to check out how reliable the broker is and what commission or fee he is charging before moving forward.
Auto brokers make money by putting their skills to right use and helping customers buy a car. They charge for their expert advice and deal negotiations on your behalf. If you don’t have the time or patience to do everything on your own, hiring a professional may be the best idea. An auto broker can find the perfect car for you and take care of the details for you for free. Visit eAutoLease.com, certified New York auto broker, if you are interested in buying or leasing a new car and want professional guidance on making the right decision.
