3 Reasons Why Auto Brokers are Better Than Car Dealerships

What makes an Auto Broker different from a salesperson at an auto dealership? We get that question often. And even though both sell cars, there’s a considerable difference between the two.


Auto Broker vs. Car Dealership

1.Their Goal

The first and most important distinction between an auto broker and a car dealership is the goal. A car dealership, by default, must make their goal to sell whatever cars are on their lot. Their inventory is the first determining factor for your purchase, while your actual situation and needs take a back seat.

As an auto broker we are a licensed dealer that has access to nationwide inventory. Our goal is to find the right solution for you instead of selling you what we own. That means we can remove all emotion from our advice and direction, allowing us to focus solely on you. Our goal is to find the vehicle that fits your budget, your family and your desires. We ask thorough questions about your current situation and future goals – i.e. work commutes, growing family in the near future, empty-nesters, etc. We respectfully take a look at your financial situation, because our goal is to find a perfect fit, not a financial burden. In the end, it all comes down to you, not us. And that makes all the difference.

2.Their Payment Structure

Many dealerships push sales and their main goal is to sell you a vehicle for the highest amount possible. At AutoSearch, we’re not going to surprise you with hidden fees. Our flat fee is rolled into the cost of your vehicle and we will always tell you the price of your entire transaction up front.

3.Their Inventory

We already alluded to this one, but our customers love the world of options that open up to them when working with us. We’re not bound to just one make or manufacturer. In fact, often we don’t even start talking about makes or models until we’ve had a thorough discussion about needs and wants. And then the open road is before us. We can pull from thousands of vehicles to get the make, model, condition, year, and mileage you want. We can broker new cars or used cars and also offer leasing and financing.

In the end, we see ourselves as your partner. For many, buying a car is the second biggest purchase they’ll ever make. Why wouldn’t you have someone on your side, giving you unbiased advice and thoughtful direction that will set you up for success.

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How is An Auto Broker Different: Video Transcript

What’s up, everybody? It’s Ronnie. We’re here to talk to you today about what makes an auto broker different. Lots of people have heard the word auto broker, but over the years the word’s been used to describe even normal dealerships. And today I want to help you out with a few things that’ll let you know exactly how we’re different. We’re going to start right now.

Welcome back to the channel, everybody. Thank you so much for joining us today as we talk about what makes an auto broker different. I’m not going to use the word better or worse or those types of words. We’re just going to use today what makes us different than the normal, traditional dealership.

I’m going to start off with a story today about how I actually became an auto broker, and I’ll paint this picture so you can understand it in a way that I felt it when I got out of the regular car business and joined the ranks of being an auto broker. So back in 1993, a long time ago before a lot of you were born, I was selling cars at a Honda dealership. I was going to school to be a police officer, and I started selling cars at a Honda dealership to make a living while I was going to college.

And so what I realized over five years of that dealership was I had Hondas to sell to you. I didn’t have a way to help you with a good solution unless it was a Honda product that I had. So when you’re looking at product, if I had the right car for you, the right color, everything worked out. But if I didn’t, I couldn’t advise you elsewhere to get something that you actually needed.

Take this, for example. Say you’re driving around in a Honda Accord and I’m with you trying to sell you that particular car. And in my mind, I’m like, “Man, you probably fit better in a Camry.” My job at the Honda dealership was to just sell you the Honda Accord, not give you the advice that you needed, which was, “Hey, why don’t you go try out the Camry? It rides a little bit smoother. It has a little bit more hip room. You can move around a little bit better in the car. And I can see you’re struggling with that in this particular car, so why don’t you try a Camry?”

So that’s a major distinction. So what we call that is we are unbiased. We are unbiased. We don’t have anything that we have to push, to sell, to convince you to purchase. And that’s one of the best things about being an auto broker is we don’t sell anything. We provide a great solution for you that’s going to fit your budget, fit your needs, how many people you need to seat in the car, safety requirements, performance. All of these things are touched on to make sure you get what’s best for you and you don’t get what I have to sell.

The second thing is how we get paid as a broker. Lots of people think we just mark up cars, like you could spend a Saturday going to the dealership, and we just mark that vehicle up higher and go get the car. That’s not what we’re doing, really. Basically, what we’re doing is giving you a price upfront. So when you sit with us for an hour, we’re going to tell you exactly what X car is going to cost you, and our fee is included in that. So basically, you’re not going to pay us a fee over and above the price that we give you upfront.

When we’re selling new cars, we do broker them. So what that means for you is the first step of the program is to sit down with you and help you figure it out, which car fits best, which one is going to work in your budget. And then we actually broker that deal with a new car dealer. So we contact the dealership.

They bring us the vehicle with the paperwork, fill out your name, and you do all of your paperwork with us right here at our location instead of you going into the dealership and spending four hours. It’s a very streamlined, simple process designed to save you a lot of time. And once again, you get your price up front, so there’s nothing hidden. We’re not going to have an extra fee on top of that once you pick up the car at all.

Number three thing about a broker is we are an actual licensed dealer. So we have a license to operate in the state of Colorado as a dealership. What that basically means is we buy and sell cars. So we can purchase cars, take cars in on trade. We can provide financing, leasing, all these aspects of being a dealership. We have the actual physical license on the wall for you to see when you come and do business with us.

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One of the most important things about being a broker, guys, is this is all about you. We aren’t here to try and move product. If you think about anything you purchase in your life, whenever you’re buying anything, if someone is pushing a specific brand or a specific product, are your interests the only thing in mind, or do they have to meet a quota by selling X amount of this or Y amount of this?

We basically are completely unbiased. I don’t sell anything. I actually provide you solutions, and once you make up your mind and you’re like, “Yep, that fits my budget,” then I go and do all the dirty work. I go pick the car, purchase the car, ship the car, move it here. There’s a whole streamlined thing of stuff that we do, like inspections and all of those things. But this is all designed to cater to you.

The other big benefit for you is that it gives you a massive amount of selection. We can purchase new cars, used cars. We can lease all of those vehicles. We take advantage of all the factory rebates, bonuses, all of those things right here at our desk for you.

So the next time you’re thinking about what an auto broker is, I hope that this video helps you out a little bit. If you have questions or comments or things you want to add to it, just drop it in the comments box below. We are always working to improve our business model and bring you the best service that we can. And don’t forget to check out some of the other videos we have on car buying tips. And if you’d like a specific video, drop it in the comments box. I will talk about it as much as I can based on my experience. Hope you guys have a great day. I’m Ronnie Haskins.