Sometimes adding a middleman can add to the overall cost of any process. With regards to hiring an auto broker, the opposite is true. Auto brokers have access to auctions that you don’t and they have a wealth of knowledge that could make the difference between a good buy and a bad experience. The key to making sure you get the desirable results from your buying experience choose your broker carefully.
Look for Experience and Staying Power
In nearly any industry or profession that operates online, there are scammers and frauds. Each state has its own legal requirements that pertain to practicing as an automobile broker.
For example, the New York Department of State Division of Licensing Services states that brokers in New York must have a signed and dated contract between them and every consumer for whom they do business. There are also a number of additional specifications that relate to the contents of the contract. You want to work with a broker who is established and abides by all applicable laws and rules.
All states require brokers to obtain a dealer license. Some people get a dealer license for the purpose of selling cars without worrying about the legal requirements or the satisfaction of the consumer. The prices offered by brokers are very low, making it difficult for someone who is not familiar with the business to make the distinction between a scam and a really good deal.
A good way to avoid a scammer is by choosing an established, reputable broker who has been working in the automobile industry for a long time.
Important Partnerships Often Result in Better Deals
An auto broker may work as a partner with a variety of companies to provide clients with a comprehensive buying experience. Although the auctions do not allow non-dealers to bid on and purchase cars, they do work with brokers who buy their vehicles on their clients’ behalf. Choosing an auto broker based on their partnerships will give you more options for buying cars that would otherwise be off limits to you.
Another significant partnership the broker may have is with auto insurance companies. This is another way that they can get great deals for you.
Whenever insurance companies designate a vehicle as totaled, they pay the insured owner the amount of the value of the vehicle and then take possession of it. Once the vehicle has been given a salvage title, they then sell it at an incredibly low price. While a salvaged vehicle is not the right choice for everyone, it can be a real bargain for anyone who does their own repair work and can restore the vehicle to a useable state.
The partnership between the broker and the insurance company gives them access to a large variety of salvage vehicles at a really low price.
Recognizing a Real Value
One way that the average consumer has for recognizing the value of a vehicle is through Kelley Blue Book. This is the most trusted resource for obtaining values on new and used car values.
In an industry where there are different factors that come into play in determining the value of vehicles, a reputable auto broker should be a trusted resource as well. They will take the guesswork out of determining a car’s value and help you get the best possible deal.
Transportation: The Ultimate Partnership
Sometimes people get so excited about the variety of cars and the low prices they see at auction, they don’t consider the expense of having their vehicle shipped to their home. Transportation options and shipping rates vary greatly between auctions and delivery companies. Some brokers work in partnership with delivery companies to ensure each client gets the best quality service at the lowest possible rates.
The real test of whether a car bought at auction is a good deal is whether the cost of delivery combined with the purchase price and any additional fees adds up to no more than the actual value of the car. Depending on the type of car you buy, the condition it is in, and the type of title it has, you can get an auction vehicle for 20, 40, or 60 percent lower than the normal selling price.
In many cases, the cost of delivery is much lower than the savings on the car. If the broker uses a trusted delivery service to transport the vehicles they sell, you can expect to get a good value from this partnership as well.
Choosing the Right Vehicle
No matter how low the price may be or what a great deal you may think you are getting, any car is only a good buy if it will meet your needs. Every individual is different and only certain cars will be a good match for you. If you are a hobbyist who enjoys restoring vehicles, a salvaged vehicle may be just what you are searching for. If you want a good quality family car that has room for your growing family, a new model SUV might be the best choice.
An auto broker can explain the different types of vehicles and titles to you while also clarifying any part of the auction process that you don’t understand. In addition to the various partnerships that the broker works with to get you a good deal, they also work with you to get the deal that is right for you. That means finding the vehicle that meets your driving and budget needs and making the process as simple and painless as possible.
Explore our Vehicle Auctions, as well as finding more information about How These Auctions Work.
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