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How To Become An Auto Broker

 

INTRODUCTION

What is an Auto Broker? Do you want to become an auto broker? Let me show you!

An auto broker is an independent car buying professional who will search, negotiate, and purchase a new or used car deal on the behalf of their customer/client for a profit. You are the middle man locating & buying the vehicles for your clients are ready, willing, and able to purchase (we need to make sure they have the financial ability to purchase by making SURE they are pre-approved by a lending institution). You are their personal auto broker – a full service auto broker. This is an exciting career option for people who love cars and love helping people. The Auto Dealer Academy offers a comprehensive Auto Broker Training Program.

Basically you act as a one man “car buying” service. You are a new kind of dealership – an Auto Broker! Use your auto broker license or car dealers license to find your clients new vehicles 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 a year with no problem.

Some auto brokers tend to “specialize” in a certain area. Maybe you live in the area for diesel trucks, or maybe you love exotic cars, or maybe you like older Mercedes, or only specialize in restored classic cars. If you want an area to specialize, that is your choice. I like the regular ole bread-n-butter cars that are plentiful! Thats just me.

As a bonus, your typical customer (I like to all them clients) is a working local professional or local business owner too busy to deal with buying a vehicle. They would RATHER hire a professional auto broker – you! You will be their main contact person in the transaction, you will handle everything (for a nice “auto broker fee” of course – that is part of your profit).

You will meet your client once to “take the order” at your office and collect your up front auto broker fee. Then you will meet the client again, at their office, to deliver their car! The number of days between the purchase and deliver is usually 3-5 days. Typically, you client will NOT see the car BEFORE you buy it. Of course, with facetime today, it is easy for the client to view the car before you buy it. If a client demands to view the car BEFORE you buy it, DECLINE the order (don’t take a bad order. I will show you how to take profitable orders!) – trust me on this – ask me how I know!

Your customer will love you and send your referrals! Once people buy a car using an auto broker, it is their preferred method of purchasing a car. Then, their wife needs a car, their teenage daughter, their co-workers, their secretary, … deal and more deals! Referral marketing is the BEST way to get more deals. Remember, you are dealing with the public – so an attitude of service is required!

Also, having a killer website helps too! An online presence is standard business now. If someone types into Google “Your City Auto Broker”, you want your site to show up online first! If your site is on the 2nd page, that is NO good – it is like you aren’t online at all. If you need help ranking your site online, let me know (SEO is something I am VERY good at!).

Let’s talk PROFIT for a second. You can make a profit THREE ways…. 1) Your Auto Broker Fee. 2) The extended warranty you will sell to 80% of your clients. The sale of the warranty is SUPER easy. I will show you. Usually this is an extra $500 – $1000 profit on top of your auto broker fee. 3) Buy their trade in! They get sales tax credit and you have another vehicle you will make money on. You can also include value added services such as detailing the car, having a dealer inspect the car, stereo installation, … you get the idea. Now, after your licensed and seasoned, you will also start to offer financing for your clients! I recommend you try and eat every part of this turkey!

Being in the Auto Broker Industry is a GREAT business. You deal with professionals with money who are ready, willing, and able to buy now. You are a car BUYER – not a car salesman! You are ONLY buying cars that are PRE-SOLD (Think about that!) You buy cars for people. Now, this IS a sales job (aren’t all jobs!) but a FUN one. My study course, my auto broker education program, will teach you everything from A-Z about the auto broker business.

Typically, you will be buying cars 3-5 years old NICE CARS. This is a NICE car business! All of them should be GREEN LIGHT at the dealer only auto auction. You want to buy common cars that are easy to find and buy – no weird colors or options. I will teach you how to take profitable orders! Do not accept a job looking for a needle in the haystack (unless you get a nonrefundable auto broker fee!).

This job is also a Monday-Friday 9-5 type of job in MOST cases. You set the terms of your job. You can purchase cars during the day at dealer auctions (in most cases) and deliver to the car to the clients place of employment. Trust me, you WANT to deliver the car to your work – ALL their co-worker will see it! Can you say “marketing!”. Have plenty of business cars and have someone take your picture with the new owner in front of his new motor vehicle! (you can see the importance of having access to a dealer auction. Without that access, you would be driving all over the place looking at one car at a time. With access to the auction, you can view TONS of cars at once!) Sure, there are public auctions but I don’t recommend them – thats just MY opinion.

In most states, you will get a regular ole used car dealers license. A few states have a special “auto brokers license” – the licensing process and application requirements, such as insurance, surety bond, … for an auto broker license is very similar to a dealers license. The dealer license forms aren’t hard to fill out at all. Just take your tie with each form to ensure they are complete. Each state is a little different in their licensing forms. The department of motor vehicles (DMV) will be happy to walk you through the licensing process and application requirements. They usually have multiple licenses you can get – I make my recommendations in the study course.

The auto broker model is the method the Auto Dealer Academy recommends the most! It is reliable and stable with little risk. You will learn all the strategies and techniques. If you follow the auto broker education program as outlined, you will do very well financially. Just like a pilot has an extensive check list before he takes flight, your todo list is to go through all the training material in the Master Course. All that is required is a disciplined application of those principles outlined in my training program.

Use my 25+ years of experience and learn from my successes and mistakes. My “Master Study Course” will teach you everything, step by step. Learn how to operate the auto broker business the right way. You will learn how to get clients (marketing), and learn how to take profitable orders from people who are ready, willing, able, and PRE-APPROVED to buy the motor vehicle they want! Typically, you buy the automobile on like a Tuesday and your deliver the automobile by Friday.

Why do people use auto brokers?

I have discovered mainly three reasons:

  1. To avoid the dreaded typical car salesman song and dance. β€œIf I could, would you….”, β€œIf 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.
  2. To save TIME. Busy executives and business owner 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 you to get it done asap.
  3. To utilize an experts advice. When a client buys a vehicle from you, they will know they are NOT buying a car with frame damage, been in an accident, … Heck, what is that worth? A lot! 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 vehicle 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!

George Dean Copyright Auto Dealer Academy