Note: The following information is from the first few pages of the “How to Be An Auto Broker” Course at the Auto Dealer Academy.
What is an Auto Broker? An auto broker is a person who finds and negotiates a new or used car deal on the behalf of their client for a profit. You are the middle man.
Basically you act as a one man car dealership. You can get your client new cars at no-hassle discounts and used car at near wholesale prices. Your clients love you and they tell everyone they know about you. With the right personality, you can make six figures with no problem.
Why do people use auto brokers?
I have discovered mainly three reasons:
Most customers already know what they want. They have surfed the internet and know the options, the colors, and the price of the car they want.
You are the automotive expert there to answer questions and provide information so your client can make the decisions that is best for them and their family. Your goal is to provide all the information and pricing up front in a controlled relaxed manner without all the pressure. No song & dance. Just straight forward answers and exceptional service is your motto.
This is MY favorite business model. It feels good to see my clients so happy and excited about the car I selected for them. In most cases, they simply can’t believe how easy the process was and how much time its saved them and how much money they saved. And let tell you, they tell everyone they know about me! Its great when you get a call and the person says, “Hi George, I am Todd, a friend of Sylvia’s. You bought her a Maxima a few months ago. Now, I am in the market for a car. Could you help me?”
Another thing I LOVE about the Auto Broker model is that I buy the car on Wednesday and its sold on Thursday! One day turn around. Gotta love that. No holding costs at all. Every car I buy is presold!
How much money can an auto broker make? Once you are rolling, you should be able to complete 8 – 14 deals a month. Depending on HOW to do the business (Different pricing models are covered at the Auto Dealer Academy) your profit can range from $650 to $1400 per deal. If you do the math, you can see this can be a fairly profitable business model.
Once the marketing and networking starts to fill the pipeline, orders will be steady coming in. At any one time, you should be working on 5 – 10 deals.
Another Tip: If you treat everyone as a one time sale – you will ride in the income roller coaster with average highs and devastating lows. Your goal should be to build long term relationships with your clients. By doing so, you are protecting your future streams of income.
The key is to all of this is finding the folks who are ready to buy cars – right? I cover a ton of proven marketing techniques in the manual. Getting the phone to ring should NOT be a problem.
Another advantage of being an auto broker is that you can keep regular 9AM – 5 PM hours most weeks! Not too bad. This truly isn’t a weekend business. Personally, I LOVE that!