How To Become An Auto Broker
What is an Auto Broker? Do you want to become an auto broker? Let me show you!
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 locating” service. You use your auto broker license or car dealers license to find your clients new cars at no-hassle discounts and used cars 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:
- To avoid the dreaded typical car salesman song and dance. “If I could, would you….”, “If you will sign here I can take this offer to my manager”, … The pony show gets tiring after a while. It’s frustrating, time consuming, and down right manipulative.
- To save TIME. Busy executives just do not have a weekend to waste driving from dealer to dealer to make deals. These are my best customers. They just want to know the price and want me to get it done asap.
- To utilize an experts advice. When a client buys a car from you, they will know they are NOT buying a car with frame damage, been in an accident, … Heck, whats that worth? A lot! I charge $500 just to inspect a car for a client. (My knowledge is valuable and if you let me train you, so will yours!)
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.
|Your client just wants his car of choice at a FAIR PRICE without ANY HASSLE. This is where you come in – you are a friendly smiling face who is there to help facilitate a smooth quick, easy, painless transaction – the way car buying should be! Right?|
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!