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What is an Auto Broker & Why Should You Use One?

Written By

Lewis C. Smith

Published

Aug 10, 2024

Discover the role and benefits of auto brokers in this video and article from CarOracle and how these services can benefit consumers who are in the market for a vehicle.

Introduction

The process of buying a car has become increasingly complex in recent years. With a myriad of options, from traditional gasoline-powered vehicles to electric vehicles (EVs) and hybrids, as well as the decision between buying or leasing, it's no wonder that many consumers feel overwhelmed. In fact, a sobering study from Lending Tree included this key finding. "Nearly 40% of consumers who’ve purchased a vehicle have car-buying regrets. The most common regrets are choosing a different make or model, buying an unaffordably expensive car and not shopping for a better deal."

This is where an auto broker comes in – a professional who can help navigate the complex world of car buying and ensure that you get the best possible deal. Helping consumers make the right car decision for their situation, regardless of make, model or new or used is also why CarOracle's Auto Buying Program was created and why clients have rated us so highly.

What is an Auto Broker?

An auto broker is a licensed professional who acts as an intermediary between car buyers and dealerships. In California, auto brokers are required to have a dealer license with an additional endorsement for auto brokering. This sets them apart from traditional car dealers, as they do not sell cars directly but rather facilitate transactions between buyers and sellers. To become a licensed auto broker in California, individuals must meet certain requirements set forth by the Department of Motor Vehicles (DMV).

Auto brokers provide a wide range of services to help car buyers find the right vehicle at the right price. These services may include:

Conducting market research to identify the best deals
Negotiating with dealerships on behalf of the buyer
Streamlining paperwork and financing
Providing ongoing support and advice throughout the buying process

One of the key roles of an auto broker is to serve as an intermediary between car buyers and dealerships. They use their knowledge and experience to negotiate the best possible price and terms for the buyer, while also ensuring that the dealership is treated fairly. This can be especially valuable for buyers who are not comfortable with the negotiation process or who simply don't have the time to haggle over prices.

Benefits of Using an Auto Broker

There are many benefits to using an auto broker when buying a car. Here are just a few:

Expertise in the Automotive Market
- Auto brokers have extensive knowledge of the automotive market, including current trends, pricing, and availability of different makes and models. They can help buyers navigate the complex world of car buying, providing valuable insights and advice along the way.
Knowledge of All Vehicle Types Reputable
- Auto brokers are well-versed in all types of vehicles, from traditional gasoline-powered cars to EVs and hybrids. They can help buyers understand the pros and cons of each type of vehicle and make an informed decision based on their individual needs and preferences.
Assistance with Financing and Insurance
- In addition to helping buyers find the right car, auto brokers can also assist with financing and insurance. They can help buyers understand their options, secure the best possible rates, and ensure that all necessary paperwork is completed correctly.
Time-Saving Benefits
- Perhaps one of the biggest benefits of using an auto broker is the time-saving aspect. Instead of spending countless hours researching vehicles, comparing prices, and negotiating with dealerships, buyers can simply let their auto broker handle the heavy lifting. This can be especially valuable for busy professionals or anyone who simply doesn't have the time or energy to devote to the car buying process.

Why CarOracle?

Tailored Expertise: CarOracle isn’t just an ordinary auto broker. With 20+ years of industry experience, they go beyond finding, negotiating, and facilitating car purchases. They become your trusted advisors, customizing each deal to fit your lifestyle and budget
Negotiation Power: As a California-licensed auto dealer with an auto broker’s endorsement, CarOracle diligently negotiates with dealerships on your behalf. They ensure that deals are secured with your best interests at the forefront.
Efficiency: After selecting your ideal vehicle, CarOracle streamlines the paperwork and arranges a convenient time for you to take possession of the car. They save you time—up to 14 hours typically spent on research, inventory searches, and negotiations.
Unbiased Guidance: CarOracle provides objective advice across all major car brands and doesn't carry an inventory so they have no incentive in selling the merits of a vehicle they own as opposed to finding the right car and deal for their client.

Client Testimonials

Ellen left 5 stars along with this review: "Car Oracle is the most amazing car experiences I have ever had, and I come from the experience of being one of the earliest individuals to buy a car over the internet 20 years ago, when the car was delivered directly to me. Brett exceeded my expectations by helping compare models and calculate price (I had decided to lease), as well as negotiate. He's very knowledgeable about cars, and knows ins/outs of just about every car out there--rivaling NPR's Click/Clack on Car Talk. He checked in often and took the time to get to know my likes/dislikes. Ultimately, after I made my decision, he ensured the car was delivered to my home, paperwork and all. It was a simple turn the car over, inspect it, and the car was mine. Thank you Car Oracle"

Rebecca left 5 stars along with this review: "Brett was very knowledgeable and informative when I was searching for my first EV. Knowing very little about cars myself and purchasing as a single female buyer, it was nice having someone on my side to answer all my questions and guide me in the car buying process. I would not hesitate to refer friends and family to him. Highly recommend!"

Brian left 5 stars along with this review: "I started looking online for an inexpensive car lease. I was frustrated when not much information came up with almost all searches showing car sales. I stumbled upon CarOracle and am more than happy that I did. At first when I was looking to lease Brett was very knowledgeable about the process and did an eyeing of explaining it to me. He was very helpful in narrowing down my search and his lease quote was less than a dealer quote. After shifting gears and deciding to buy instead Brett was able to find the perfect car for me at a very good price. Most importantly throughout this whole process from beginning to end there was absolutely NO PRESSURE AT ALL from Brett! I can not thank Brett enough for all of his help in finding me the perfect car for me and I HIGHLY RECOMMEND his services to anyone looking to buy or lease a car. THANK YIU BRETT!!!"

Melinda left 5 stars along with this review: "I can't say enough great things about Brett. My head was spinning when I was trying to figure out what car would work best for my family. I didn't have a lot of time to decide as my car was ready for trade in and I'd already received the trade-in quote from a few dealerships.

I gave Brett my list of must-haves, and my would like to haves, and he sent me a super detailed, easy to compare presentation with a number of options that fit the bill. That alone made my decision making process a thousand times easier. I narrowed it down and he went through the pros & cons of each, all with a very unbiased outlook. His #1 goal was making sure that whatever my choice, I was happy!!

Once I settled on the car I wanted, he searched the local dealerships, found me a number of potentials, called & talked to the salesmen for me, and walked me through every step.

I really felt so taken care of, and SO MUCH less stressed. I'd never used this type of service when buying a car in the past, but I'll definitely never buy a car again without calling Brett & employing his services!! Very happy, will-be-a-repeat customer!"

Cathy left 5 stars along with this review: "We had a terrific advocate in Brett!
He listened carefully to our stated needs, offered suggestions and then went right to work.
Brett negotiated out the junk fees, ran his own calculations on sales and license fees, confirmed the warranties and then arranged for the car to be delivered.
If it weren't for Brett, we would still be dealing with bait and switch tactics and junk fees.
Instead, we have a beautiful car at a great price.
Thanks, Brett!"

Conclusion

Buying a car can be a stressful and overwhelming process, but it doesn't have to be. By working with a licensed and experienced auto broker, you can save time, money, and hassle while ensuring that you get the best possible deal on your next vehicle. Whether you're in the market for a traditional gasoline-powered car, an EV, or a hybrid, an auto broker can help you navigate the complex world of car buying and come out on top.

If you're in Southern California and considering using an auto broker for your next car purchase, look no further than CarOracle. We are dedicated to helping you find the right vehicle at the best possible price. We have a proven track record of success and a commitment to transparency and customer service. Learn more about our Auto Buying Program or schedule an appointment to learn more about how we can assist you.

ON THIS PAGE

What is an Auto Broker & Why Should You Use One?

Introduction

What is an Auto Broker?

Benefits of Using an Auto Broker

Why CarOracle?

Conclusion

Smart Shopper Insights FAQs

What should I look for during a pre-purchase inspection?

A pre-purchase inspection should cover the vehicle's mechanical condition, appearance, and safety features. On the exterior, look for signs of damage or rust, and inside, check for wear and tear, and the condition of the tires. Under the hood, look for any signs of leaks, the condition of hoses and belts, and the state of the fluids. Ideally, a trusted mechanic should conduct a comprehensive inspection, including putting the vehicle on a lift to check the undercarriage, suspension, and to detect any potential leaks or undisclosed damage from an accident. They should also inspect the engine, transmission, brakes, and steering systems, verify the function of warning lights, and take note of any that come on after starting the engine. Finally, a test drive is an essential step to evaluate the car's handling, braking, and overall performance.

What should I look for during a pre-purchase inspection?

Are service records really that important when looking at a used car?

Absolutely, service records are crucial when considering a used vehicle. They provide a detailed history of the maintenance and repairs the car has undergone, giving insight into how well it has been taken care of. Regular maintenance not only improves a vehicle's performance but also extends its life. Observing diligent maintenance intervals also offers insight into the previous owner's responsibility and commitment to vehicle upkeep. If a vehicle lacks service records, it might be challenging to determine its actual condition and if critical maintenance tasks were performed as needed.

Are service records really that important when looking at a used car?

AutoCheck vs. CarFax: Is one better than the other?

Both AutoCheck and CarFax provide detailed information about a vehicle's history, though they source their data differently. CarFax is known for its comprehensive service and maintenance records and is extensively used by dealerships. In contrast, AutoCheck, owned by Experian, uses a unique scoring system that helps buyers understand a vehicle's condition at a glance. Depending on your specific needs and the level of detail you're looking for, you might prefer one over the other.

AutoCheck vs. CarFax: Is one better than the other?

What does a rebuilt title or branded title mean?

A rebuilt or branded title indicates that a vehicle has suffered significant damage in the past and was deemed a total loss by an insurance company. This damage might have been due to a collision, flood, or other serious incidents. After the damage, the vehicle was repaired and inspected to ensure it met certain roadworthiness standards. However, understanding the extent of the damage and the quality of repairs is vital as structural deficiencies can be challenging to detect with a visual inspection alone. A branded title can significantly affect a vehicle's value and its potential for future resale. Therefore, it's vital to thoroughly inspect and understand a vehicle's repair history before making a purchase.

What does a rebuilt title or branded title mean?

Are autobrokers the equivalent of real estate agents?

Auto brokers and real estate agents both serve as intermediaries in their respective fields, offering similar services that streamline and facilitate transactions for buyers. Here's a closer look at the parallels:

Advocacy and Representation: Both professionals advocate for your interests, finding options that match your preferences and budget.
Negotiation Skills: They negotiate terms on your behalf to secure advantageous deals, from price to financing.
Market Insight: With specialized knowledge of their markets, they guide you to make informed decisions.
Time-Saving: They manage the complexities of transactions to save you time and effort.
Compensation Structure: In many cases, just like real estate agents, auto brokers' fees are paid by the seller, which means their services can often come at no direct cost to the buyer.

An important distinction to note is the regulatory environment. In California, auto brokers are required to have a dealer license issued by the state, similar to real estate agents who must be licensed to operate. This ensures that they adhere to stringent standards of professionalism and ethical conduct, undergo thorough background checks, and comply with specific transaction codes that govern vehicle sales within the state. While the same level of regulation may not apply to auto brokers in other states, many still operate with a strong commitment to honesty and transparency.

When you work with a licensed auto broker in California, you're engaging with a professional who has met all the necessary requirements to legally and ethically conduct car sales, akin to the rigorous process real estate agents go through for licensure. This not only underscores the credibility of the broker but also provides you with added assurance that your transaction adheres to all state laws and regulations.

Are autobrokers the equivalent of real estate agents?

Advocacy and Representation: Both professionals advocate for your interests, finding options that match your preferences and budget.
Negotiation Skills: They negotiate terms on your behalf to secure advantageous deals, from price to financing.
Market Insight: With specialized knowledge of their markets, they guide you to make informed decisions.
Time-Saving: They manage the complexities of transactions to save you time and effort.
Compensation Structure: In many cases, just like real estate agents, auto brokers' fees are paid by the seller, which means their services can often come at no direct cost to the buyer.

Are autobrokers the equivalent of real estate agents?

Advocacy and Representation: Both professionals advocate for your interests, finding options that match your preferences and budget.
Negotiation Skills: They negotiate terms on your behalf to secure advantageous deals, from price to financing.
Market Insight: With specialized knowledge of their markets, they guide you to make informed decisions.
Time-Saving: They manage the complexities of transactions to save you time and effort.
Compensation Structure: In many cases, just like real estate agents, auto brokers' fees are paid by the seller, which means their services can often come at no direct cost to the buyer.

Dive Even Deeper into Smart Shopper Insights

Smart Shopper Insights