Reader question:
I wanted to hire a new car broker, but a lot of car dealerships won’t deal with them. What’s up with that?
Damien
Jealousy, maybe?
That sounds like such a childish classification, but it’s actually kind of true, or at least that’s what the new car brokers say. According to the brokers, car dealerships don’t like them because the car dealerships don’t want to give car buyers good deals on buying new cars, but the brokers know how to get those good deals. It’s like how dealerships don’t like things like Blue Book, either. They want you to be ignorant, mumbling, and unsure about your purchase, because if you are, they can take advantage of you and charge you as much as they want.
But that might not be the only reason they’re denying your broker. You want to make sure that the broker you hire is a legitimate one. There are laws that apply to these situations. Brokers have to be licensed, and the brokerage business is regulated by the state. So, before you hire a new car broker, check your state’s laws and look into the history of that broker’s business.
Brokers are constantly opening up shop, but even with this, they’re part of only about five percent of all new car sales. There’s a good reason for this. People like to see what they’re buying, and if you hire a broker, you don’t get to do that.
There are other similar options besides hiring a new car broker. You can also go with a car buying service, like AAA. They work like brokers do and can get you a deal on your car, but for the most part it isn’t worth it unless you just cannot hassle with going to the dealership yourself. Most of the time it’s easy enough to negotiate down to the price that places like AAA will get you.
Cheers,
Fashun Guadarrama.