In Australia, car brokers are a relatively unknown breed, with many unaware of their existence, let alone what they do. However, buying a car through a broker can deliver you major benefits.
Back in the day, car brokers used to operate as ‘spotters’, working on behalf of dealers to attract customers. If the customer purchased a vehicle from the dealer, the ‘spotter’ was paid a fee. Over time, things changed and brokers now work on the side of the consumer, helping them find the right car to suit their needs.
Car brokers will often collect the car and deliver it to the customer, albeit you wouldn’t know otherwise considering the contract is typically between the dealer and driver, with the broker only receiving a cut from the dealer afterwards. It might be reasonable to think that with another party being involved in the process costs might increase? However, given their relationships with dealers, brokers often secure better deals than the public sometimes might.
Advantages of buying through a broker include
- Time savings: Brokers do the time-consuming ‘leg work’ of shopping around to compare prices, taking vehicles for a test drive, arranging mechanical inspections of used cars, and collecting the vehicle.
- Cost savings: Brokers are experienced negotiators and have all the latest knowledge regarding used car values and current specials on new cars. They may be purchasing a number of similar cars at once, for different customers, allowing them to negotiate a ‘fleet’ discount.
- Peace of mind: Car brokers are more likely to know the warning signs to indicate that a car has been poorly maintained, suffered severe accident damage, or has mechanical faults. They also know which dealers are reputable and provide good quality after-sale service.
- Financing: Brokers have relationships with finance providers and know their requirements, helping streamline the process.
- Insurance: Brokers can organise car insurance for you before delivering the car to you. Often, their network of contacts enables them to source excellent deals.
- Extended warranties and accessories: Brokers are well-positioned to negotiate favourable pricing for extended warranties and other add-ons, not to mention, tell you if they’re worth it in the first place.
- Act as an on-seller: Used car brokers may purchase cars at private auctions and then sell them to private buyers, including coverage via statutory warranty
Consider using a well-known and highly-rated car broker to buy your next car. They’re not hard to find either, just do research in your local neighbourhood, or get in touch with us. While there may be fees involved, a broker will usually save you more than any fee given their knowledge and negotiating power, not to mention time and inconvenience. Best of all, a broker will also still be there to address any issues or complaints that come up throughout the process.
The Fincar team is here to help you with all your financing needs. Contact us today to help arrange your next car or equipment loan.