Buying a used or new car can be a long and stressful process for many consumers. To save time and money, they are increasingly turning to a car broker for help before, during and after their transactions.
After determining their budget and the type of vehicle they wish to purchase, customers contact a broker who begins searching for the ideal car according to their criteria.
With their experience, their network of contacts and their expertise, they are able to save their clients a few hundred dollars at the conclusion of the file.
“Currently, savings can vary between $500 and $800,” explains Lorraine Lévesque, a broker with 25 years of experience in the field. “However, we were talking about amounts between $1,500 and $2,000 a few years ago.
“For example, for electric vehicles, the profit margin for dealers is thin. They have less inventory [sic] and they want to negotiate less.”
The fees for doing business with a broker vary from one broker to another. We think of an amount that can vary between $500 and $1000 depending on the research and the value of the vehicle in the transaction.
“As I tell my clients, the savings you’re going to make are equivalent to the fees you’re going to give me,” adds Alain Fredette, a broker from Sherbrooke. “I see things they don’t see.”
Alain Fredette has been advising people on the purchase of their cars for several years.
Photo provided by ALAIN FREDETTE
Evaluation, the nerve of war
When a consumer shows up at a used car dealership, he can see all the colors from the beginning to the end of his visit. It is not the same when it is a broker who represents his client.
“When I walk into a used car yard, I quickly know who I’m dealing with,” Fredette explains. “If the yard is clean and the cars are in order, you can tell if the dealership’s business model is clear or not.”
Fredette and Lévesque are especially capable of finding the right arguments so that their clients obtain the best possible transaction.
They often find a way to negotiate the trade-in value of their customers’ vehicles upwards. With a few hundred dollars more in their pocket, they are able to get more affordable payments down the road.
Little known profession
Unlike mortgage or insurance brokers, those who work in the automotive field do not have the same recognition. They are little known to the general public.
“It’s a profession that is unfortunately little known, even though I know that it is very popular with consumers,” says Lorraine Lévesque.
“Initially, it was more word of mouth. Over time, with media interviews, I managed to demystify it. Even today, many people tell me they wish they had known that this service existed.”
According to Mme Lévesque and Mr. Fredette, one of the keys for a broker is independence from dealers.
“I’m not beholden to anyone,” says Fredette. “That gives me freedom of choice in my decisions and in my research.”
“I don’t have to please anyone except my client.”