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Car brokers Australia
Learn all about what they do, their fees, benefits, and more.
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Buying a new or used car? A car broker can help you find one that fits your budget and needs. They can also help you with the entire process.
Learn more about what they do, if you should use them, their fees, and more in this guide.
What is a car broker?
A car broker helps customers who are looking to buy a car by acting as the middleman between the customer and car dealers. Brokers help you find the type of car you want and then get you the best price from a range of sellers.
What does a car broker do?
Car brokers can assist you through the entire process of buying a new or used car. If you're ready to buy a car, you can approach a broker who will then help you work out the type of car you want or find you an available vehicle if you already know the model you're after.
Once you've worked out the car you want, the broker will contact a range of car dealerships and sellers to find you the best price. They can also conduct inspections and negotiate with the dealer on your behalf. The broker generally receives a commission from the dealer, but may also charge you a fee for their service.
Car brokers can also provide additional services, including:
- Organising test drives
- Car finance
- Extended warranties
- Insurance
Should I use a car broker?
If you want to avoid some of the hassle and stress of buying a car from a dealer, a broker will negotiate with the dealer on your behalf. If you're uncomfortable haggling or don't know what to look for when it comes to buying a new or used car, a broker can handle the sourcing and inspection of the vehicle for you.
A broker can also potentially get you a lower price than if you were to approach a dealer directly. However, many brokers charge a fee for their service (which can also be hidden in the purchase price) and if you're happy to haggle with a dealer, you may be able to get a better price yourself.
What are the benefits?
As car brokers have existing relationships with a range of dealers, they can often get you a better price on a vehicle than if you were to buy it from a dealer directly. In some cases, brokers may even be able to find you a car at "fleet prices", which is the price that dealers normally give to businesses buying multiple vehicles.
Car brokers also have experience inspecting vehicles and can do so on your behalf. If you're unsure about the specific car you need, a broker can also use their expertise to help find the car that's right for you.
How much does it cost?
Some car brokers charge a finder's fee for helping get you a vehicle and many also receive a referral fee from the dealer for arranging the sale. Referral fees can generally range from $250 to $1,000, depending on the type of car.
While you won't be paying the referral fee directly to the broker, it may be included in the price you pay for the vehicle. Car brokers aren't legally obliged to disclose any referral fees they receive, so you should always ask them directly to see if using a car broker makes financial sense. It's also important to compare a range of car brokers to find the one that offers the best deal.
If you're planning to get a car loan to buy your vehicle, some lenders also offer free car broker services as part of their loan.
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