Auto brokers are becoming more and more popular because of the economy and consumers looking to obtain the most car for their hard-earned dollars. The question is do you really save that much by using an auto broker or auto buying service? Yes and no, as there are many variables when it comes to savings and the type of vehicle you purchase.
Auto brokers can save you thousands of dollars and a substantial amount of time if you use them correctly. The unfortunate part of the auto brokers is one of their qualities, minimal overhead. Many auto brokers work out of their homes or have a small office and a skeleton staff.
This facet of the business will allow you to avoid paying excess fees and profits needed by the dealers to maintain operations. This trait may also become a difficulty for some car owners who have used an auto broker when having issues with the vehicle or more in particular the paperwork (financing, licensing etc.). Salespeople, F&I or product advisors are famous for helping their customers but neglecting the ones they don’t know. A question to ask yourself; Are you comfortable fending for yourself in the event of on forseen issues?
Auto brokers save you money, in most cases, but many times don’t have the capacity to assist you any further then the pricing. If you can save a substantial amount it may be worth while to use an auto broker and forgo the services provided by dealerships and their sales staff.
The savings you receive from using an auto broker can range from thousands less than what the dealerships charge, to actually costing more then what the dealers may offer, with a little negotiating. How can this happen? Easy. If you are able to save $500 off the sale price of a new car with a broker, and then are charged $500 for his services, your savings are effectively negated.
Auto brokers sometimes are able to purchase vehicles for the same or near what the dealers pay, and then pass the savings on to you for a fee. The most common brokers though only arrange a discounted price from an actual dealer. A brokerage or auto finder fee can range from a hundred dollars or so to upwards of a thousand dollars or more. The rate which you are charged is based on vehicle type, distance for delivery and of course size of discount they can obtain.