When to Hire a Broker

Should I hire a broker?  That's a question that I get asked a lot.  Here's the deal with brokers.  Not everyone needs a broker.

How do you know whether or not hiring a broker is right for you?

• Afraid of paying too much and not comfortable negotiating.
• Don't mind the process but simply don't have the time.
• Comfortable negotiating but dislike the process.
• D.) All of the above.

If you answered yes to any of these, go an hire a broker.  Buying a car for you is a pain in the but.  Paying someone else to get in the trenches for you is worth the money.  Take my word for.  Everyone benefits.  You don't have to deal with the dealership and the dealership doesn't have to deal with you.  It's a Win/Win.

Keep this in mind though, you are the one doing the hiring.  So, how do you know who's on the up and up and who's not?  

Essentially, when you go to the dealership, your salesman is like the broker for the dealership.  He is acting on behalf of the dealership to take you through the process of buying your car.  Now this isn't a bad thing and neither is what I'm about to say.  The salesman is acting on his and the dealerships behalf.  Who's acting on your behalf?  Aside from you, obviously.

I've been doing this a while and let me tell you something, I am always respectful to customers and I know a lot of times the ones that come across as rude are really just operating from a poor perspective based on a past negative experience.  Besides, they don't even know me.  They haven't known me long enough.  In reality, I'm a nice guy and will take good care of you.  That being said, nothing cracks me up more than the customer who says something to the effect of, "Look man, I've bought 10 cars in the last 5 years, so don't try any funny business!  I know how to play the game!"  Really?  Hey buddy, I SELL 10 cars in less than a month, EVERY month for the last 8 fricken' years?  You think I'm scared now because you've done 10 deals in 5 years?  Give me a break!

So, where was I?  Oh yeah!  Broker...  get one that's going to be your advocate.  If the guy tells you his service is free.  Run!  That means he's getting a piece of the action from the dealer and clearly not looking out for your best interest.

Is the broker fee disclosed up front and in the beginning?  That's where it should be.  If you're looking for an excellent example of that take a look at Authority Auto in Sherman Oaks, CA.

First off, they work nationwide so if your in Kalamazoo, you can use them too.  Secondly, Authority Auto bills them selves as consumer advocates and not brokers.  They do not accept any dealer commissions or kick backs.  This is the kind of "broker" you want.  The guy who is truly looking out for you.  Why?  Because you're paying him to do so.  His job is to act on your behalf, not the dealer's.  Authority Auto also believes that to accept a dealer commission, creates a huge conflict of interest.

So if you're going to have someone do it for you (And by that I don't mean your cousin Larry, the guy who's bought 10 cars in 5 years.  That kind of 2nd baseman will hurt you more than help you. I promise) go hire someone like Authority Auto who's looking out for you because it is their business to do so.

In business there's two schools of thought.  One is, to make a lot of money selling "X" and then the other school (which is rare) is "I love "X" and want to share it with the world and I am going to make a lot money doing it."  Making a lot of money clearly isn't the problem.  But how you go about it, can be.  Align yourself with the right people and hire the right kind of help!

Happy Shopping!

Have something you need to get off your chest?  Leave a comment below or hop on over to our forum!

http://myforum.davescarsite.com/user/categories.aspx

PS - I have no financial interest in Authority Auto.  They're just a cool group of stand up guys that will bend over backwards to help you get the right car at the right price.