The world of auto retail is changing, and that means good news for car buyers. The traditional way of buying a car at a dealer showroom has been around forever, and it’s a game where the playing field is heavily tilted in the dealer’s favor. The dealer knows all the numbers involved much better than the buyer, so he knows exactly where margins can be raised and lowered to maximize his profits while still offering a good deal.

It’s a bit like a casino; bettors at the tables may have a few individual wins here and there, but overall, the house always wins. Buying a car from a dealer is similar, in that you might get them to drop the price of the car a bit or add a few extras, but they get it all back again in the finance package or other extras you didn’t know you needed. (but the seller convinced them that they were absolutely essential).

The internet has gone a long way in helping buyers as you can easily check prices from several different dealerships across the country. But that’s still just a starting point; A dealer will often be happy to lower the price of a car if they can make up for it elsewhere, and it becomes very difficult to keep up with the negotiations when you have a new car, your partial trade-in (trade-in), finances, insurance, options and accessories, all make up the final numbers. The dealer is adept at juggling all of these balls at once and knows exactly how much he is winning on each part of the overall deal. The customer is usually completely in the dark as to the offer he is actually receiving.

More and more car buyers are now turning to a car buying agent or car broker to help manage their car purchase. Here, the buyer gets to play a level playing field with the dealer, as the car buying agent or car broker usually has the same knowledge and experience as the dealer to be able to negotiate all aspects of the deal for the benefit of the buyer.

The other advantage of using a car broker or car buying agent is that it saves you an enormous amount of time. Researching cars and taking walks all over town to visit dealerships, getting quotes from different dealers on different models, and comparing all the information is a tremendously laborious exercise. A car buying agent or car broker can take care of all the hustle and bustle and allow you to focus on your work or enjoy your recreational time.

So what exactly does a car buying agent or car broker do?

Let’s explain the difference between a car buying agent and a car broker.

With a car broker, you provide as much detail as possible about the car you’re looking for, and the broker gets a vehicle that matches his desired specifications as closely as possible.

A car buying agent offers a more comprehensive overall service, usually including specific advice and recommendations on choosing a car and its specifications to suit your needs, as well as sourcing your chosen vehicle. If you’re not sure which type of car is best for your needs, the advice of a car buying agent can be much more valuable than the savings he or she can get from the dealer. Choosing a more suitable car can mean considerable savings throughout the ownership period, even if the price of the car is not that significant. Many people have bought a car completely unsuitable for their needs, and using a car broker will not prevent that. However, a good car buying agent will help make sure he’s choosing a car that will do everything he needs it to for as long as he owns it.

Rate

Brokers and agents get their money from a fee charged to the client for their service and/or a payment or commission from the broker. This is an important point for you as a buyer; If a dealer pays your broker, they are ultimately working for the dealer instead of you, which means they may not be acting in your best interest to secure the best car available at the best possible price.

To ensure that your agent is acting in your best interest and not the dealer’s, you should always look for a car buying agent or car broker that has a clear fee structure and does not accept payments or commissions from the selling dealer. Fees must be clearly explained, easily understandable and related to the service provided. If a broker advertises their services as free, it almost certainly means that the dealer is paying you a commission or “finder fee.” If an agent or broker offers their advice for free, it is unlikely to be a properly detailed, analytical report covering all aspects of your driving needs.

A car broker will typically charge a fee based on the value of the car you are buying. If this is the case, he should be clearly aware of your fee structure before starting; For example, if the relevant price threshold in your fee structure is £30,000, then a car costing £30,001 may mean a much higher fee for the broker. than a car costing £29,999.

Some agents or brokers will charge a flat fee for their services, and some may charge a fee based on the level of discount they get from the advertised price. This means that the more money you save, the more they will earn and gives you the reassurance that they are acting in your best interest.

With a car buying agent, there will typically be a fee for their advice and expertise, and a separate fee for obtaining a vehicle. Again, you need to keep in mind how your pricing works, but don’t be put off by the idea of ​​paying for expert advice, as it can save you thousands of dollars in the long run. You can even use a car buying agent for advice on choosing a car, but handle the purchase yourself. This is often the case for company car drivers, who have lease agreements at their place of work but don’t know which car to lease.

In short, a car broker or car buying agent can make the car buying process much more attractive and advantageous for the average consumer, saving considerable time and potentially a lot of money.