What Is a Car Broker?

• Car brokers facilitate car buying by negotiating and handling logistics, offering convenience but at a fee.
• Fees vary widely, from flat rates to percentages of savings or vehicle price.
• Using a broker can save time and effort, especially for specific or high-value vehicles, but direct negotiation or alternatives like car subscriptions might be more economical for some.

Car brokers act as intermediaries between potential buyers and auto-selling parties, including private sellers and dealerships. Many car brokers are retired car salespeople or managers working independently, as part of a service, or via a larger company. Car brokers often operate within their local area but can also help customers nationwide find the right car. 

The value of a professional car buyer or broker lies in their relationships and expertise. These people know the automotive industry well, have a pulse on the local market and trends, and understand how to walk into a dealership and talk the salespeople into the best deal possible. The best car brokers even have connections to cars that may or may not be available on the public market. 

Most car brokers specialize in finding new, used, classic/vintage/rare, or leased vehicles that fit their client’s needs. In addition, car brokers can also help facilitate trade-in deals. The key to locating a good car broker lies in understanding where their loyalty lies. Brokers often receive a commission from a local dealership to push their bevy of vehicles, whether they offer the best prices in town. 

Car brokers typically charge anywhere from $200 to $1,000 or more on a case-by-case basis. Pricing structures often vary from flat-fee and hourly contracts to percentages or commissions based on the savings the broker delivers or the vehicle's final sale price. You can negotiate car broker fees, but there’s no guarantee your attempts will be successful. 

Flat-rate contracts tend to work best if you want to keep car broker service fees to a minimum. This type of payment structure also favors beginners and vehicles of higher value since percentage-based contracts typically result in paying more fees based on a larger portion of the savings or sales price. However, hiring car brokers who work off a commission can help delay payment if and until the deal goes through. 

Car brokers specializing in new cars tend to cost less than those specializing in used vehicles. If you’re asking yourself when car prices will drop, consider that brokers dealing exclusively in used cars charge more for their services. You have several model years to choose from when looking for a used car, so the effort required to find a match increases. Car brokers specializing in anything classic or vintage will also quickly drain your wallet. 

Just like figuring out if Nissan is reliable or not, you should understand the differences between the various types of car brokers listed below: 

• Car broker: A car broker does the legwork to find the specific car you want to buy. They may be working solo, as part of a service, or as an employee of a larger organization, and their loyalties may lie with local dealerships. Brokers can specialize in what types of vehicles they help customers find. 
• Car buyer’s agent: These agents work similarly to a car broker but with a stated understanding that they have no loyalty to any dealership in car sales.  
• Car-buying concierge: As the name suggests, these car-buying experts work on a higher tier than the average broker and may offer highly specialized services for buyers of particular tastes. 
• Car-buying services: These programs are often available through a bank, credit union, AAA, or Costco. Membership perks include prearranged pricing you don’t have to negotiate to take advantage of. 
• International car broker: If you’re looking to import a car, you definitely need to talk to an international car broker. They can help you navigate importation rules and regulations to ensure your vehicle arrives safely and by the book.
  
  

Car brokers themselves may advertise their services in various ways using the terms above. If you’re unsure what their services cover, asking about specifics can help clear any confusion. It’s best to start on the same page when paying a car broker to maximize your investment. 

Finding yourself in the first-time car-buyer program can be challenging, especially if you’re unsure which model you want to purchase. For those times, a car broker can help you weed through the rigamarole of visiting a dealership so you can simply enjoy your vehicle—and the savings you hopefully got by hiring a car broker in the first place. Below are additional reasons why you should hire a car broker. 

1. Convenience

The time-saving grace of meal-delivery apps and car brokers have one main characteristic in common: convenience. For many potential buyers, it’s much easier to explain your wishes to someone and have them complete the task than to spend time, effort, and gas money to find the car you want and negotiate the deal. Hiring a car broker also means you don’t have to cruise all the “for sale” automotive sites, arrange test drives, or even attend auctions to find your next car. 

2. Negotiations

Most car buyers would likely pay someone to come in and negotiate a deal to avoid getting the wool pulled over their eyes at the dealership. It’s one thing to walk away thinking you got the best deal you could, but quite another knowing an expert in the industry signed off on your deal. If you’re interested in purchasing an extended warranty or other add-ons, car brokers can also help facilitate fair pricing in that arena. 

3. Expertise

The same expertise that helps with negotiations can also work in your favor by advising you about which models to pursue and which have more problems than they’re worth. Car brokers possess the experience to know red flags when they see them, so you can avoid dumping money into a car you just spent thousands of dollars on. They can also help field any concerns you have and relay those thoughts to the car dealership appropriately.

If you’re curious to learn more about using a car broker, read on to find out the steps involved in this simple process. 

1. Narrow your search 

Before you even start looking for a car broker, narrow your desired qualities for a car to a concrete car shopping list. While you don’t have to pick out a specific make or model, having a good idea of what type of car you want can help expedite the car-buying process. 

2. Find a car broker 

Finding potential car buyers to work with often means doing an internet search for local brokers in your area. You can also look nationwide for someone with good ratings and reviews. Ask around, as you may find your friends and family have recommendations for brokers they’ve worked with in the past. 

3. Verify credentials and reputation 

While you can buy a car without a license, a car broker can’t purchase one without proper documentation. Permits and licenses for car brokers vary by state. Ask for references from past clients to understand how a particular car broker operates. You can also speak to various dealerships local to the broker to see if the dealer knows that broker. 

4. Solidify an agreement 

Most car brokers assume you’re working with several to help you find the car you want. However, you can still compare prices and specific services to uncover the best fit if you work with one broker. Clarify and get in writing any retainer fees or pricing structures before you agree to anything. Once you share the details of the car you want, it’s time to let them earn their finder’s fee. 

5. Seal the deal 

When the broker returns any matches, evaluate them against your wants and needs. If you find a vehicle for sale that you want to test drive, the broker can often arrange it. When you’re ready to move on a car, they can help with negotiations, related paperwork, and delivery. 

Car brokers do most of the work for you, so it’s often a waiting game once you find them. You get to focus on completing other tasks while your car broker scours the classifieds for your next vehicle. 

Deciding if you should hire a car broker often requires reflecting on the best use of your time and if you have the funds to gamble on finding a better deal. Although car brokers tend to stake their reputation on enhancing the car-buying experience and getting clients a better deal, those car deals are only as good as the dealership is willing to make them. Suffice it to say, you’ll only get a good deal if there’s a good deal to be had, which is ultimately up to the dealership alone. 

Car brokers can be helpful if you’re looking for one-off vehicles not typically seen on dealership lots. However, you can easily do the work of a car broker if you know how to research cars for sale. Then again, not having to haggle your car purchase could be well worth the money you spend, even if it eats into your savings. 

If you’re unsure if a car broker is for you, alternatives include a FINN car subscription and finding and negotiating your own deals. You may enlist a family member or friend to negotiate for you if they have the chops. You can also lease or rent a vehicle until you’re ready for the next step, whatever that might look like.