Why hire an auto broker? Is it really worth it?
Hello again loyal Beaverton readers!
I have received several emails asking why consumers would want to hire an Auto Broker.
Every buyer should have a professional on their side
The concept behind hiring an auto broker is relatively simple: you’re not a professional car buyer, so why go it alone against a professional car seller?
With the confusion of financing, fees, add-ons, taxes and the hurried, jargon-filled nature of the dealership, it only makes sense to leave the bargaining to someone who won’t be fazed by the wheeling and dealing.
The satisfaction rate is high and I have heard countless success stories told and retold about the thousands of dollars buyers saved over a “best-price” offer made one day from a dealership, only to have a broker secure a better price just days or even hours later.
“I consider myself a good negotiator and this was my first time using an auto broker and we had a very positive experience,” said Tracy Shartner, who recently bought a Toyota Sequoia through Ferguson Auto Brokers in Beaverton.
At first, Shartner went the traditional route, heading over to a dealership and working with a salesman. But after reaching an impasse with the sales staff, Shartner decided to walk out and hire a broker. This Broker was referred to him by a co-worker here in Beaverton.
Sure enough, Ferguson Auto Brokers was able to secure a price about $1200 cheaper than he was originally quoted on the exact same vehicle from the same dealership. Plus, the dealership paid the broker fee.
This kind of success story is possible because brokers usually have experience with dealerships and know exactly how much they can afford to charge based on how long the car has been on the lot, how many more they have coming in and how much dozens of other dealerships are charging.
But much of what a broker provides is convenience and peace of mind.
Shartner found that he likely would have paid a much higher price had he continued on his own and after this positive experience, he now understands the value professional help.
“I don’t care for the antagonistic negotiations with salespeople anymore,” Shartner said. “We’re telling everyone we can about our broker. We spent 4 hours at the dealership without the broker and did not buy. With the Broker we were in and out in about 30 minutes.
Brokers with dealership experience are best
One of the tricks to using a broker, however, is figuring out what kind of auto broker you’re dealing with. A simple look through the internet can scrounge up dozens of names, but broker skills vary.
If you look for a broker who are former dealership employees. you’ll find they are much better equipped for the job of brokering.
When you find one, ask questions about his or her background, the fee structure and the history of the company. Most reputable brokers are proud of their independence from dealerships and will openly boast about how well they know the tricks dealerships can pull. A good broker will have access to managers above the basic sales person who, unlike a broker, is trying to maximize the sale price.
In fact, some brokers do not use the retail side of the dealership at all. They deal directly with the fleet manager who simplifies the process.
Look for a flat fee
Your broker should charge you on a flat-fee basis, agreed to before purchase. This way, the broker only makes money when he or she gets a great deal for you and can’t drive up the fee by putting you in a more expensive car.
Using a broker saves money
In the end, most consumers can save hundreds if not thousands of dollars by hiring a professional to broker the purchase of their next car.
But beyond the dollars, you’re also saving hours of hassle by avoiding the traditional walk-up (or even an internet-based) dealership experience. And that can be the most valuable benefit of all.
Thank You all for reading, please let us know if we can be of service.
If we can help with the purchase or with the sale of a vehicle please keep us in mind. I guarantee you will not get a better deal than we can help you get. We can be reached by telephone (503) 930-1493 or at firstname.lastname@example.org By Larry “The Car Guy“ Ferguson