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What Is An Auto Broker

Home / Autos / What Is An Auto Broker

What Does An Auto Broker Do?

Many buyers use a car broker when purchasing a vehicle for several reasons. Whether it is because of lack of time or patience, the reasons are endless. However, is it worth using a car broker when buying a car rather than brokering your deal at the dealership?

Table of Contents
  • What does a car broker do?
  • Is it worth using a car broker to buy a car?
  • Types of brokers
  • Advantages of buying a car from a car broker
  • Professional representation
  • Significant savings
  • Convenience
  • Cons of using an auto broker
  • Charge extra fees
  • Cars you should avoid buying
  • Fiat 500
  • Mercedes GL
  • Chevrolet Cruze
  • Range Rover
  • Volkswagen Touareg
  • Used cars you should buy
  • Conclusion
  • FAQ
  • How much do car brokers make?
  • Is buying a car through a broker cheaper?

The concept of buying a car is quite exhilarating, but the process can be very frustrating. The process of purchasing a vehicle involves researching the dream car of your choice, shopping around for the best deals, and negotiating the value to fit within your budget.

People who do not appreciate the lengthy process turn to car brokers to help them with their purchase. Since car dealerships are professionals at selling, why not hire car brokers, who are professionals at buying? The question is, is it necessary to use a car broker when buying a car?

19/05/2025 12:38 pm
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What does a car broker do?

A car broker, also known as an auto broker, is responsible for managing the process of purchasing a vehicle on behalf of the buyer, including tasks like researching for the ideal vehicle and negotiating the price and a sea of dealer add-ons, saving the time and money of the buyer.

Depending on the car broker, vehicle and its price, the fee for the services of the car broker may be as couple little as a few hundred dollars to as high as a of thousand dollars.

By offering you convenience and peace of mind, car brokers may also save a few hundred dollars from the sales prices of your dream vehicle.

Is it worth using a car broker to buy a car?

Purchasing a vehicle is an expensive investment that occasionally happens in a buyer’s lifetime. Whether you are looking for a new or used car, car brokers help you save money and time. 

Unless you are actively involved in the automobile industry, likely, you do not have the pre-requisite knowledge and expertise with new car dealership owners or salespersons. Luckily, car brokers do.

By hiring a car broker, you will avoid expensive mistakes and wasting your hard-earned money. In other words, a car broker is a professional car buyer and advocate who represents and fights for your rights.

It is also crucial to identify the type of car broker you are dealing with when purchasing your new vehicle.

Types of brokers

If you opt to use a car broker when buying your car, it is prudent to perform a background check to find out the type of auto broker you are dealing with. There are two types of auto brokers- wholesale and individual car brokers.

Individual car brokers are those that previously had positions in car dealerships or vehicle manufacturing companies. As a result, they tend to have a lot of knowledge about the car.

Usually, they operate from home or a small office near town. It is unethical or even illegal for such car brokers to receive compensation from dealerships for passing your name along as a potential buyer.

Many people identify themselves as car brokers, yet they earn a substantial amount of money from dealerships when you buy your vehicle, or they directly work for the dealerships and fail to inform you of this crucial fact.

Wholesale car brokers belong to a club where they offer personalized car purchasing services to their members. In most cases, they have a dealership-broker relationship that helps them find the best deal in town for you.

Such auto brokers earn their commission from dealerships, after selling their cars.

Advantages of buying a car from a car broker

There are several advantages to buying a car from a car broker. With their experience and expertise, you will save money and time while getting the best value for your money. Here are some pros and cons of using an auto broker.

Professional representation

An auto broker is a professional car buyer who is responsible for representing you and your needs when purchasing a vehicle. By using a trustworthy car broker, you eliminate any feelings of anxiety, uncertainty, and doubt in the car buying process.

Auto brokers cater to meet your best interests, protecting you from any shoddy deals in the automobile market.

Significant savings

One of the core goals of auto brokers is ensuring their customers do not get ripped off. Due to their knowledge of the industry as well as some of them have the advantage of being previous dealership salespersons.

Car brokers have more bargaining power than the ordinary layperson purchasing a vehicle. They know how to deal with dealerships and where they can get the best deals for their customers.

Convenience

Auto brokers save consumers time and money as they handle car buying transactions from start to finish. Buyers do not have to drive around town, looking at vehicles or spend endless hours negotiating with dealership salespersons.

Car brokers simplify the car buying process and deliver as per the expectations of the buyer.

Cons of using an auto broker

Charge extra fees

Auto brokers should only charge process or administration fees for their services. Some unethical car brokers may fail to disclose their fees early on in the process; thus imposing numerous hidden fees on the buyer.

Be careful with such brokers who do not have your best interests at heart.

Cars you should avoid buying

Fiat 500

As stylish and fun as it may look, Fiat 500 has been consistently unreliable over the years. Its retro style, TwinAir engines, variety of limited edition variants, as well as its compact size makes it a city favorite among many. However, we cannot forget about its shortcomings.

According to Auto Sales, Fiat 500 loses 40% of its initial value within the first two years of ownership. Many people have also complained about the vehicle’s poor build quality, basic features, and inadequate equipment.

Despite a price drop in 2017 to attract more buyers, more than 11% of owners have complained of experiencing several problems with the car, including suspension issues.

Mercedes GL

First launched in 2006, Mercedes GL was designed to compete in the luxury SUV division. After over a decade in the market, this 7-seater comfortable SUV is in dire need of an upgrade or a replacement.

Many owners of this vehicle complain of its clumsy handling, despite it being ideal for tackling most off-road situations.

With such a high price tag, the Mercedes GL should not experience such material issues from the start. According to Repair Pal, one of the most common problems is that the shifting gets rough and oil leakage from the vent housing, after a while of use.

Similarly, its rotors and brake pads are from soft material; hence, they require frequent replacement, approximately after every 10,000 miles. It is advisable to stick to S-class or E-class when buying a used Benz or opt for one of the redesigned SUVs.

Chevrolet Cruze

From 2011 to 2013, Chevrolet Cruze was one of the most unreliable vehicle models available in the market. With issues ranging from the transmission, engine cooling, body integrity, airbags, and climate control, this compact sedan has had a total of five recalls, all at different times.

At a certain point, the Chevrolet Sonic was more reliable than this model.

Range Rover

As one of the UK’s most iconic vehicle, most owners of the range rover do not love it because of its reliability. First launched in 1970, this luxury vehicle is in its 4th generation.

However, the first generation Range Rover was not a luxury car, but as a basic vehicle with functional interior design.

Over the years, it seems the company has decided to focus on the vehicle’s interior quality, as seen in the new generation models.

Some of the main areas of complaints are oil leaks, electrical issues, and suspension problems. To this day Range Rovers look really slick and stunning.

However there a many serious complaints about range rovers and their reliability is still very poor. It is no good looking slick parked on the side of the motorway broken down.

Volkswagen Touareg

Since 2002, this German automobile got its name from a nomadic community in North Africa, well known for exploring the desert.

According to Car Complaints, the 2005 and 2012 models have had the most complaints from their owners. Some of the complaints include high repair costs of parts such as the EPC warning light and the fuel pump.

Used cars you should buy

When buying a vehicle, it is best to always have in mind the average maintenance costs in the long run. You have to factor in general repair costs and fuel economy in your budget.

Consumer Reports conducted a reliability survey on over half-a-million cars available in the market to find out the worst as well as the best-used cars you should buy.

One of the most reliable used cars to buy includes the Toyota Prius. From its economical gas usage to its eco-friendly reputation, this vehicle is definitely a king of reliability.

Additionally, its eye-catching exterior on modern models also makes it a favorite among many.

A key benefit of buying pre-owned vehicles is that you avoid the significant depreciation hit new cars experience when they leave the dealership lot. 

By purchasing a car that is two or three years old, you save up to 40% off the initial value. When looking to buy a used car, search for a reliable and affordable option.

Some other used cars you should buy include Lexus, Toyota Camry, Audi Q7, Toyota 4Runner, Mazda 3, and Infiniti G-series; among many others.

Conclusion

The car buying process is complex, and not everyone knows how to deal with dealership salespersons. Some buyers do not have the time to locate and negotiate a car deal for themselves.

In such circumstances, using a car broker when buying a car could be the best alternative. A broker will take away all the headaches involved in purchasing your new vehicle while also saving you a substantial amount of money.

FAQ

How much do car brokers make?

It will depend largely on the car and the jurisdiction they are operating it, but expect figures in the range of $40,000 to $60,000 for auto-brokers.

Having an average salary is a herculean tasks because most of the auto brokers make their most of their money from commissions. The most aggressive of them could be ranking amounts greater than $250,000 per year.

Is buying a car through a broker cheaper?

The reason why someone will go for a car broker is you do not have the time to do research for a car and you lack the expertise to choose the right car.

Car brokers have years of experience buying cars on behalf of clients. Also, consider there is a lot of time that is spend haggling the price of a car.

Brokers do charge a fee for car purchases but you need to weigh it in with the time you would have spent doing the purchase yourself.

However, take your time in identifying the right broker. Also, do not believe them whenever they tell you how good a deal is.

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