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Car brokers and car dealers: How to tell the difference

Getting a car has become a normal part or phase of a person’s life, and everyone goes through the stage of wanting or needing their own car. A lot of people, however, can get taken aback by everything they have to go through just to get a car. The procedure can be messy, with all the visits to car dealers, and choosing and deciding, and paperwork. It can get even messier when a person gets intimidated and pushed into making a deal he doesn't really want to get into in the first place. Other people just don’t have the time and patience to go through the difficulty of buying a car by themselves.

And this is where the terms “car broker” and “car dealer” come in, with the latter more commonly known than the former, although both terms have existed for around the same time. In the most basic sense, a car dealer sells the car, while a car broker helps customers pick out the car and go through the entire complicated process of buying the car they want. The next few paragraphs are going to elaborate the similarities and differences between car dealers and car brokers.

Professional Buyers versus Professional Sellers

Car dealers are well-seasoned businessmen, involved in the business of distributing and selling vehicles that are either brand new or used at the retail level. They are professional salesmen, adept at the art of persuasion, with many years of experience of convincing people to buy things. It’s easiest to think of them as “professional sellers”.

And if there are professional sellers, then of course there have to be professional buyers as well. These are the car brokers, or auto brokers. They are professionals because they know exactly what they’re doing—one might call them experts at what they do. These people make a living out of assisting and aiding consumers in searching for cars that are most suitable to their budget, as well as negotiating prices and helping people get the best and most affordable deals.

Advantages to Hiring a Professional Broker

Rather than doing it alone as an individual consumer, it is usually the best choice to hire a broker to help you with purchasing a car. Here are some advantages.

  1. Car brokers have the power. A professional car broker has certain abilities and “powers” that an individual consumer can’t garner alone. First of all, an auto broker most of the time has a tremendous network of connections to various car dealerships. Usually they have direct links to the CEO’s of these businesses, as well as other powerful connections. You, on the other hand, as a common buyer, only have contact with the salesman or the single car dealer in front of you.

  2. Car brokers are fast and efficient. Because of their numerous “powers”, these expert sellers can get the job done in no time compared to a single buyer trying to fish in an ocean of available cars. With their connections, brokers can easily contact numerous dealerships to get an instant lowdown on available cars that fit a consumer’s preferences and budget.

The Car Broker Process

Most professional auto brokers follow four simple steps in their business transactions: contact, search, test drive, and deliver. After the initial contacting dealerships and searching for the most suitable car for the client, they go for a test drive to see if it runs smoothly, and afterwards make the delivery.


image courtesy of Car Search Brokers Australia Pty. Ltd.

Views: 27

Tags: brokers, car, cars, dealers, lemon, used

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