A good car broker can potentially save you money, and if they’re good they’ll also save you lots of time. It should be a broker’s job to represent your best interests to help you find the most suitable vehicle in an efficient and effective manner. But how can a broker save car shoppers money? Generally speaking, car brokers are knowledgeable about the automotive marketplace and should have a strong idea of what prices are achievable. But given the amount of information available to consumers, the broker may not necessarily have proprietary information that isn’t already available to consumers. And it is possible that with some time and effort a very savvy negotiator could end up with a deal almost as good or equal to what a broker could achieve. But the difference is that a broker has a great deal of experience negotiating vehicle prices (both purchase and lease) and knows how to structure an offer the dealer is likely to accept. The broker may even have a relationship and good rapport with a sales or fleet manager at the dealership that allows him/her to cut to the chase more quickly and obtain a great deal with no messing around. If the broker works efficiently and frequently with a dealer to minimize the dealer’s workload (internal admin and resources) then the deal can be even sweeter as the dealer won’t have to build a sales rep’s commission into the selling price as the broker can help alleviate this workload.
Consumers typically buy a vehicle no more than once every three years. Brokers, on the other hand, facilitate a number of purchases every week – often with the same dealership. In an effort to retain the broker’s business the dealership will often make price concessions to the broker that aren’t available to the public. As number of sales count toward a dealership’s quota and corresponding bonus from the manufacturer, the dealer will be willing to offer deeper discounts to a broker who helps them increase their volume rather than an individual consumer who will only be contributing a one-off sale that leaves the dealership focusing on the individual transaction’s profit margin.
We know the “invoice price” – the amount a dealership pays the manufacturer for a vehicle. And this info is becoming more readily available to everyone. But just knowing the invoice price doesn’t necessarily mean you’ll be able to get a great deal. You have to structure offers the dealership will be willing to accept. By knowing the invoice price you have a good baseline but knowing is only half the battle. At Car Compass we share the invoice price and any available incentives with our customers to help set expectations and ensure we’re shopping around an offer to achieve the most competitive price on our clients’ behalf.
To learn more about how a car broker can help you buy a car in the Toronto area, contact Car Compass at 416-477-9328