What kind of services are provided by motor brokers? Why should someone rather use one of them than do business directly with a car dealership? Let us have a brief look at the principles involved.

A motor broker is different from a car dealer in the sense that he does not carry any inventory. When you therefore contact him and express your interest in buying a vehicle, he will contact the dealers he does business with and negotiate a deal on your behalf.

As far as commissions go, some brokers charge a flat fee per transaction, while others base their commissions on the value of the car you are buying. You should always inquire how much commission the broker charges, even if he finds the vehicle you were looking for at a very good price.

As a general rule, the brokers have a close relationship with the car dealers. They're thus in a better position than you to negotiate with these dealers to get the best possible price on the car you want. You might well save a couple of thousand dollars on a particular car by buying it through a broker.

Many of these brokers will also help you to sell your trade-in. They have a list of potential buyers on their books and they might easily find a buyer for your used car, giving you a very good trade-in price.

All the major brokers have close contacts with the banks. When it comes to financing your vehicle, they are therefore also in a good position to obtain the best possible interest rate on your behalf.

The same goes for insurance. If you make use of bank finance to purchase your car, the bank will require that you take out car insurance. A good motor broker will assist you with this and make sure that you are informed about the best options available on the market. Motor brokers have become an essential link in the car retail chain, providing a valuable service to the consumer.