Many consumers think or feel that if they buy a new vehicle from an auto broker they get their best deal, well…Not necessarily true. The Auto Broker will mark up the cost and charge it to the consumer, mark up the rate or money factor (if a lease), or charge a “Broker Fee”. The broker fee is the only fee that must be shown on the contract; all other fees can be hidden within the deal itself (payment etc…). Now, an auto broker can save you the time of searching and negotiating with the Dealer, but at a cost. Years ago, when buying a vehicle was so stressful, and you never knew what the lowest price was or could be, auto brokers made sense (before the I-Net). When you tossed in your trade in, the stress level skyrocketed, what is my car worth? How much should I expect to get on a trade in, etc.? Today, after years of regulations by the Government, Auto Dealers must follow strict laws and processes, they kind of brought this on themselves, but it was due and good for consumers. With a plethora of information at the consumers fingertips (I-Net/Google, that web thing or as Richard Rollins says, the Interweb) consumers can easily find the price range on a particular vehicle in about one hour (if the I-net dept. are doing their job, 15 minutes - this is another blog upcoming). You can easily send 5-10 e-mails or leads in about 30-45 minutes to several dealer in your area, or even better, send a few outside your area (this will give a greater view of reality). Why would you go to an auto broker and pay a fee? By the end of the day you will have a much better idea of what you should be paying for the vehicle you want. Next, send out an e-mail or lead asking what your payment will be? You can also reach out to any credit union or your bank and ask what your payment will be, here is the kicker, based on your portfolio or credit report/score. Once you have secured all this information, you can go into your local dealer, I like buying local because the taxes help build better roads and improve our schools, and show them your research, if they want to sell a vehicle, they will match or, even beat the prices you got on line. Why would you pay the fee from and auto broker? One last note on this, you can even reach out to an auto broker and ask them for their price and payment, then, get it it writing (always) and show this research to your local dealer. Lastly let’s discuss the trade in? What is my vehicle worth? What can I or should I expect for my current vehicle? Again, before the Interweb, you had to rely on the dealer or auto broker for the value; now you have the ability to search values on your own. You can go to any Dealers website that signed up with KBB (Kelley Blue Book) instant cash offer product (ICO). Please understand, this is a bit different then going to KBB for a value. ICO asks more questions regarding the condition, if there is or were any accidents or damage, whether it was ever a rental and maintenance history. This deeper dive allows KBB to give a more realistic value; KBB has algorithms built in to properly appraise without view or driving your trade. In addition, KBB-ICO is a product that the Dealer has agreed to utilize (if they are a member) and will give you this value (the price/value is e-mailed to you in a certificate form to bring to the Dealer) as long as you have imputed the information and condition accurately (this is always a interesting part of the equation, as the owner seems to think it is nicer than the Dealer). Once again, with this information available to you, why would you pay a broker fee? Always remember, an auto broker is "NOT" a dealer. They can't sell you a car cheaper than a dealer because they must buy the car or get the price from; you guessed it, a Dealer. The Dealer must sell the vehicle to the auto broker, or give the price to the auto broker (so they can figure out the structure and quote you a price or payment) before you can utilize the auto broker. With that said, why would you not go directly to the Dealer? Save the broker fee, buy direct. Delivery of your new vehicle is something that should be and must be remembered! An auto broker is not trained or certified to deliver your vehicle; remember, they broker all makes and models. When you buy or lease from a Dealer, you are getting qualified or certified employee of that brand, they understand the options and safety features of that vehicle and can demonstrate, properly, those features. I can't begin to tell you how many clients, which purchased from a broker, stop by my Dealership and ask "how do you operate the Bluetooth streaming product"? How do you use Apple Car-play? How do you, etc... I even have had several clients that did not know they could send a call to roadside assistance for a lock out, battery jump or gas? Nearly 99% of the time, they purchased from some broker who thought they had "Car-Intelligence", but quickly realized, they were wrong! Again, armed with this knowledge alone, why would you pay the broker fee? Most important, you can always get up, walk out and go to a Dealer of your choice, they will most likely be within a few dollars of each other, or, you can get up and go to the broker. Now that you have this information, and 20+ years of education in the automobile business, what do you think, Auto Broker or Auto Dealer?
As General Manager of Land Rover Marin, I often hear from customers who are weighing their options between purchasing a vehicle directly from a dealership or using an auto broker. While auto brokers may seem like an attractive shortcut, I want to take a moment to clarify the reality of both options-so you can make an informed decision.
The Myth of "Car Intelligence" and Hidden Broker Fees
In today's digital age, many consumers consider themselves experts when it comes to purchasing a car. They think using an auto broker will save them both time and money. The truth, however, is quite different. Auto brokers typically charge a fee ranging from $1,000 to $5,000 for their services, which are passed directly to you, the consumer. That's money you could save by handling the purchase yourself.
With the advancements in the internet and AI, the car-buying process is easier than ever. From detailed make and model comparisons to transparent pricing, color options, financing, and leasing, you have everything you need at your fingertips. There's no longer any need to outsource this important decision-making process when the tools you need to make an informed choice are so readily available.
What Auto Brokers Offer (and What They Don't)
While auto brokers may be appealing to those who find the car-buying process overwhelming, they come with a significant catch. According to Capital One, brokers can add an additional $1,500 to $2,000 in fees, covering inspection and delivery costs that often go unnoticed until after the event.
Another important consideration is that brokers don't own the vehicles they source. As a result, you miss out on the opportunity to test drive, inspect, or assess the condition of the car in person before committing the purchase. This means that you might not be able to spot potential mechanical or cosmetic issues until it's too late.
What Dealerships Offer That Brokers Can't
At Land Rover Marin, we believe in offering you a comprehensive and transparent car-buying experience. Here's what we provide that brokers simply cannot:
• On-Site Inventory: You can test drive the vehicle you're interested in today-no need to wait or make compromises.
• In-House Financing and Leasing Options: Our dedicated finance team works with you to find the best rates and terms, all in one place.
• Trade-In Evaluations: Get an instant trade-in evaluation with no obligation, right here at the dealership.
• Certified Warranties and Service Options: Benefit from exclusive warranties and service packages available only through an authorized dealership.
• Instant Delivery: Drive away with your new vehicle the same day-no delays, no waiting.
According to Chase Bank, dealerships like ours often own their inventory, allowing us to work directly with manufacturers and financial institutions. This streamlines the process, enabling us to provide you with quicker transactions, more flexibility, and often better value from start to finish.
Simple Price - Simple Process: A Smarter Way to Buy
To make the car-buying process even easier, Land Rover Marin offers our Simple Price - Simple Process approach. Here's how it works:
• No Haggling: We are doing research for you. Our team regularly checks market prices 2-3 times per week to ensure you get the lowest possible price upfront-no negotiation required.
• Fair, Transparent Pricing: Everyone pays the same price, eliminating surprises and ensuring a fair, pressure-free experience for all customers.
• One Point of Contact: From selecting your vehicle to final delivery, one expert will guide you through the entire process. No confusion, no bouncing around from department to department.
• Flexibility to Shop In-Store or Online: Whether you prefer to visit us in person or complete your purchase from the comfort of your home, we cater to your needs.
Our approach is rooted in trust, transparency, and simplicity. No hidden fees. No games. Just a straightforward, seamless process that ensures you get the right car at the right price.
Bottom Line
While auto brokers may offer convenience, they come at a steep price-often adding thousands of dollars in hidden fees and depriving you of the ability to test, negotiate, or drive off the lot immediately. A dealership, particularly one that offers a Simple Price - Simple Process model, gives you transparency, flexibility, and a far more rewarding overall experience.
Don't pay more with a broker-let Land Rover Marin make your car-buying experience simple, smart, and stress-free.
Feel free to reach out if you have any questions or need help finding your perfect Land Rover. We're here to make your journey as smooth as possible.
Warm regards,
Bret Feasel