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 interests.
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 them.
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 the broker
have?
