You want to buy a new car. You've
been dreaming about the new car smell. But on the other hand, you
are dreading all of the hassle that comes with it - the mind games,
the haggling and the posturing. Did you know that you don't have to
go through all of that?
One option is to use an auto broker
to handle all of the details for you. Although this isn't a new
service, auto brokers are gaining popularity across the country.
It's simple. You call the broker and
provide the specifics on what you are looking for and the price you
are willing to pay. The broker will then find the vehicle and order
it for you.
You should look for a broker who
charges a flat fee for his services. You don't have to
stay within your geographical area. Many Internet-based brokers will
service clients virtually anywhere. Fees usually range from $200 to
$1,000 depending on the type of car you are buying. Used cars will
usually cost you a higher fee due to the amount of time and research
necessary to find the right one.
Watch out for brokers that are really
work for a dealership. Some have arrangements with several auto
dealers to get cars at a certain amount over cost in return for a
certain volume of business. The dealer will pay the broker a
commission for delivering the sale. This is fully legal, but these
types of brokers are usually not thinking of your best
If you decide to work with a broker,
ask for a written explanation of how they are compensated and by
whom. Licensing and regulation varies from state to state, so
thoroughly check a broker's history.
A lot of dealers will not work with
brokers. Brokers say that dealers don't want to give you the best
deals on new cars. They say that it is the age-old case of big
versus little business.
Broker licensing and regulation
varies from state to state, so be sure you can trust who you are
working with. Check the broker's history before you do business with
Car purchases through brokers
continue to grow, but they still account for less than 5% of all
sale. Most people like to see a vehicle before they buy it.
If you simply do not want to
negotiate, you can go through an auto buying service, such as AAA or
BJ's Wholesale Club. These services usually have arrangements with
dealers in your area and can get you a discount. You won't save a
whole lot, and often you can get the same deal yourself.
If you plan on using a broker, there
are a few questions you should ask first:
-Does the broker have a license to
sell cars in your state? -Is the service a flat fee or a
percentage of the final price? -Is the broker being paid by the
dealer, manufacturer or dealer association? -Is there a history
of customer satisfaction? -What types of relationships does the
broker have with dealers or manufacturers? -What experience does