Advantages to Using an Auto Broker

Updated February 22, 2018
Man and car broker discussing options

Purchasing a vehicle, whether used or new, can be extremely time-consuming. Conducting the actual search, negotiating the price and making payment arrangements require patience and may leave the consumer exhausted. Due to the time and stress involved in the car buying process, many people turn to auto brokers to assist them.

Why You May Want an Auto Broker

An auto broker is a state-licensed, professional car buyer. According to Edmunds, an auto broker handles the entire car-buying process for a fee that typically ranges between $200 and $1,000. Some brokers also require a down payment. Once fees are remitted, the auto broker will search, negotiate with the seller, and make financing arrangements if necessary. In most cases, the consumer will be driving around in a new set of wheels within a few days - without having to deal with all the hassle.

One-Stop Shopping

Auto brokers can save consumers a substantial amount of money and time because they handle the transaction from start to finish. This prevents buyers from having to drive all over town looking for the perfect ride, going back and forth with a pushy salesperson, or spending hours at the bank.

Treon Duval at Duval Premier Motors uses this advantage as a major selling point. He states, "The car-buying process is simplified in a major way when dealing with auto brokers. On top of that, customers can have whatever vehicle they desire down to the make, model, mileage, and color. I always aim to exceed my customers' expectations by meeting their needs and giving them the biggest bang for their buck."

Significant Purchase Savings

If a consumer has not done his research before vehicle shopping, it is easy for him to be taken advantage of during the final transaction. Fortunately, auto brokers protect consumers from getting ripped-off, since they know the industry; some brokers are even former salesmen. With this level of expertise and extensive knowledge of the auto industry, auto brokers have more bargaining power. A broker can acquire a vehicle at a much lower purchase price than the average consumer.

"I always start the process by researching the average selling price of the car the customer wants me to locate. This gives me a competitive advantage during the negotiation phase of the transaction, and I am usually able to close a deal in a short amount of time," stated Duval.

Professional Representation

Having a car-buying expert on your team during the process helps eliminate feelings of uncertainty and doubt regarding the acquisition. You can rest assured the auto broker has your best interests at heart. He will do everything in his power to protect you from shady or even fraudulent deals.

New Vehicles

Auto brokers have access to a multitude of nationwide databases that contain inventory from private sellers and new car dealers. It's easy to buy a new vehicle when you use a broker, and it's likely you'll recoup the fee a broker charges in the final cost of your new car.

Tell the broker what you want: the model, the specific color, upholstery, and the factory-installed features. Once the broker has this information they work with dealerships nationwide to find the car you want. When they've found it they'll negotiate the best possible deal for you. That can even include negotiating the trade-in of your old vehicle.

When a deal is reached, the broker will deliver the new vehicle directly to your door, along with the car's paperwork and keys. You'll then complete any paperwork needed to finalize the deal.

How to Choose an Auto Broker

businesswomen meeting and shaking hands

As with any service, it is most sensible to start the search for an auto broker by asking for a recommendation from your mechanic, friends or family members. Also, call the bank you are going to obtain financing through. Some auto loan officers have long-standing relationships with auto brokers. When making your final selection, it is essential to inquire about the auto broker's car-buying practices. Also be sure to consider the following factors:

  • History in the automotive industry
  • Whether or not the auto broker is licensed in their state
  • Any other special certifications
  • Customer reviews
  • Benefits offered to customers

It's also a good idea to look up local brokers through the Better Business Bureau to see if they are accredited or if the broker you're considering has any complaints against him. To avoid being overcharged it would also be wise to conduct a brief online search to get an idea of the selling price of your desired vehicle. This can be done via websites like Auto Trader, Kelley Blue Book, and NADA.

Finding an Auto Broker

There are many reputable auto brokers in the industry

My Car Guy

For a flat fee, Dave Sutch at My Car Guy can locate the perfect new or used vehicle for you and handle the entire transaction so you will not have to deal with all the hassle. Dave has 35 years of experience purchasing vehicles, and reviewers agree he is quite knowledgeable, prompt and professional when conducting business.

American Chariots Auto Brokers

In business since 1977, American Chariots Auto Brokers can help you buy or lease both foreign and domestic autos. The prices are wholesale and the cars are delivered to your office, home or other location of your choice. Angie's list gives them a #1 rating.

Members Auto Source

Members Auto Source is an Indiana broker that provides a cost-effective way to purchase or lease a new or pre-owned vehicle. They will shop, negotiate price, and deliver your purchase to your office or home. In addition, Members Auto will coordinate shipping for members located out of Indiana. BBB gives them an A+ rating.

Authority Auto

Authority Auto is a car-buying consulting agency that locates, negotiates and delivers extremely competitive prices on all types of new and pre-owned vehicles. One hundred and seventy-three Yelp reviews give Authority Auto a 5-star rating.

More Options to Choose From

If you don't want to pay a fee for an auto broker, American Express, Costco, and AAA, even some credit unions, such as Navy Federal, offer car-buying services much like what a broker provides. There are also websites like and that operate as brokers.

These car buying services work out special pricing with a dealership that is offered to a member in return for referrals. While this is certainly less personal than working with an independent broker, the service is free or very inexpensive and it will relieve you of the stress of haggling over price.

Car Bargains

Consumer's Checkbook is a nonprofit organization. Their car buying service, CarBargains is an online car buying service that finds out what a buyer wants and then for a flat fee searches dealership inventories and haggles price. One of their many press reviews quotes Kiplinger's Buyer's Guide: "CarBargains has gotten lower price quotes than other car-buying services in several consumer tests, including a test conducted by Kiplinger Personal Finance Magazine."

Car Buying Is Complex

Many people are just not prepared to effectively locate the car they want or to negotiate a car deal for themselves, others just don't have time. A broker is an expert car buyer, who will, for a price, take all the headaches away. Once your new car is parked in your driveway, you can get back to your daily life, having saved days of stress and hassle and spent far less for the broker than you saved on the final price.

Advantages to Using an Auto Broker