This question, are car brokers worth it gets asked often.  Should I use an Auto broker (otherwise known as a Car Broker)? 

Consumers also want to know if an auto broker will save them money, find them the vehicle they want, if they’ll do it without the typical stress and if there’s another solution or alternative to a car broker out there. 

To help you determine are car brokers worth it to hire, we’ll discuss the pros and cons of hiring a car broker  and then answering questions including:

• Should I use a car broker to save me money?
• Will an auto broker find the vehicle that I cannot find?
• Will they rid me of the stress of dealing with the typical dealership experience?
• And finally, is there an alternative to using an auto broker?

Let’s start with defining Auto Broker.

What is an auto broker?

Traditionally, you would call an auto broker because they could find you a vehicle either from a dealer, saving you the hassle of doing it yourself, or they could go to an auction and buy a used vehicle there for you. They would then negotiate and purchase the vehicle from the dealer or auction and sell it to you. 

In most states, auto brokers are required to have a dealer’s license and have a physical location (to display their cars). This allows them to purchase and sell vehicles regularly. An actual auto broker in today’s market is really just a car dealer.

Your Car Buying Advocate is commonly (and mistakenly) referred to as a car broker, but we are not. We will explain later what those differences are and why it’s important to know.

Pros and Cons of Using a Car Broker

PRO: Time Savings

• Ask yourself, do I have the time? Or do I want to have the time? Finding, negotiating and finally taking delivery of a vehicle is a time-consuming process. If you are strapped for time, then a car broker may be worth it.

PRO: Lack of car buying knowledge

• Ask yourself : Do I fully understand how a car purchase is structured and how to know whether a deal is a rip-off or a great deal? If the answer is no, then enlisting the help of a car broker may be worth it! If you lack car  buying knowledge then a car broker may be check in the Pro column for you!

PRO: Despise the traditional car shopping process

• Do you hate the traditional car buying process? It’s a common occurrence that my clients say they hate the back and forth at the dealer. It is worth it for them to hire a car broker just so they don’t have to go through the experience. Using a car broker is definitely a PRO for those who despise going to the dealership for a new car.

CON: Pre-negotiated Deals

• A pre-negotiated deal can often sound like a good thing. However, brokers who offer pre-negotiated deals often work with a select group of dealerships, meaning you’re limited to their network rather than the entire market. This lack of competition can lead to higher prices than what you could get by negotiating directly or using a broker who works on your behalf rather than within pre-arranged agreements.

CON: Dealer Kickbacks

• Many brokers receive kickbacks from dealerships for steering buyers toward certain vehicles. This means their priority may be selling you a car from their preferred dealer rather than securing the absolute best deal for you. Some brokers also tack on extra fees, making the overall cost less transparent.

CON: Limited Trade-In Negotiations

• Dealerships in broker networks often provide lower trade-in offers because the focus is on the vehicle purchase, not your overall transaction. Without an independent advocate negotiating your trade-in separately, you could leave thousands of dollars on the table.

Now that we’ve defined the pros and cons of hiring an auto broker, let’s answer some of the more burning questions in consumer minds.

Will a car broker save me money?

When someone asks “are car brokers worth it,” often they really want to know, “Will a car broker save me money?” 

Here’s the truth. I don’t care what any car broker tells you.

There is no actual way to quantify what a car broker can save you; UNLESS, you go out and get a deal on a vehicle and then hire a broker to do the same and then compare deals. And this approach defeats the entire purpose, doesn’t it?

Any car broker or website claiming to save their clients on average X amount of dollars might as well be pulling that number out of their you-know-what.

The truth is, no-one can get any better of a deal than you can get yourself if you know what they know and do what they do.

Can the YCBA car concierge service save you money?

We believe we save a majority of our clients’ money. Our clients believe we save them money; simply read our reviews. But as true auto advocates, we have to be fully transparent. There is just no way to quantify cost savings because we have no starting point. Are we starting from MSRP, List Price, Invoice Price? 

I’m always confused to see similar services out there in the market claiming to have saved their client $5,000 on XYZ. In the end, you could get the same deal that we can get. That’s if you have the time, knowledge, experience and drive to want to do it on your own making dealerships compete for your business. If that’s the case, we probably aren’t for you.

Will an auto broker find the vehicle I cannot find myself?

You might call an auto broker if you want to find a vehicle at an auction. Here, an auto broker can go to the auction and purchase the vehicle for you. They will then mark it up and sell it to you. That service can be valuable if they can find you a vehicle you would otherwise have no other access to or find a used car you want.

Will a car broker rid me of the stress of typical car buying?

They certainly can save you stress if the stress involved is related to negotiating with the dealership. It might also relieve you of the stress caused because of the time it would take if you had to do it on your own. However, if your broker is collecting compensation on both ends of the deal, you may not feel settled about the deal you get and whether it was “good”. This uncertainty causes most people stress to begin with, not knowing whether they made a good deal at the dealership. This is also one of the main reasons people are looking for help with a car purchase.

Today’s market

If you are in the market for a new car, a broker will negotiate a price with a dealership and earn a commission from the sale. Most auto brokers have a relationship with certain dealerships where they take all of their customers. They charge the dealership for bringing (you) the customer to them and then they charge (you) the consumer a fee for brokering the deal. 

Think about it if you were a broker. Wouldn’t you try to make as much money as you could for each customer you gain? When you hire a car broker, you have no idea how much the dealership is compensating the broker for bringing you to them. So they make money on both sides of the deal, from you AND the dealership.

The issue we see here is that the auto broker cannot have your full interest in mind since they are being compensated on both ends of the deal. They have two customers, the dealership and you. Additionally, if the service provided is “free” to you, you can be sure the real customer is not you because the broker is being compensated by the dealership.

With that being said, it may be more important for you to have a car buying experience where you just don’t have to deal with all the traditional car buying BS. You may find it worth it to pay a broker so that you don’t have to deal with the anxiety and uncertainty it brings.

If that’s the case, it’s totally understandable to want to enlist the help of an auto broker. We just think that there are better options. Let’s talk about the alternatives to an auto broker.

Is there an alternative to a car broker?

Yes, there is an alternative to a car broker. And there’s also an alternative to having to pay a broker who you’re still unsure has your best interest in mind.

This is where a car buying service, car buying concierge, car buying advocate or car buying agent comes into the scene. We can use interchangeably these words to describe individuals who provide a service to the consumer only and work in a fiduciary capacity to help a car buyer find, locate, and negotiate a car deal.

We’re NOT talking about car buying services offered by memberships from Costco or other companies affiliated with car sites like Truecar. These services offer car deals they say are pre negotiated sale prices. That sounds nice but what they don’t explain is that you still need to negotiate financing, warranties and add ons, etc. Those items alone could add thousands of dollars onto the total cost of the vehicle, if you don’t understand them. And chances are, if you’re using a Costco buying service or similar, you don’t have the knowledge to negotiate those items effectively. Dealerships pay Truecar to be in their network. The service is “free” to the consumer, so we can know that the actual customer served is the dealership, and not the consumer.

Are car brokers worth it? 

We believe the better alternative to using an auto broker, when you want to save time, reduce stress and know that you’ve gotten a good deal, is to Hire an Expert with Your Car Buying Advocate. If you want to know whether we’re a good fit, we ask that you simply schedule a free strategy call to discuss your car buying goals. 

We’ll decide if you’re a good fit for our paid service where we handle the entire process of finding, locating and negotiating the purchase of a vehicle as well as helping you get the best deal for your trade-in. If we decide to work together, we’ll ensure that by the end of the transaction you’ve purchased the vehicle you want at a good price because we’ve stepped you through every part of the deal and presented you with multiple offers allowing you to make the best financial decision for your lifestyle and situation.

Frequently Asked Questions