Car brokers Australia
A car broker can help you get a new or used car but they sometimes charge a fee. Here's what you need to know.
Key takeaways
- Car brokers can save you time, money and stress by sourcing and negotiating cars on your behalf.
- Fees vary - some brokers charge between $200 - $1,000 or earn commission from dealers, so ask upfront.
- Compare broker services carefully, as some car loan providers and car clubs offer free or discounted options for members.
What is a car broker?
A car broker is a licensed professional who acts as a middleman between you and car dealerships.
For example, if you wanted a Toyota Corolla, instead of phoning multiple dealerships yourself, a broker would do that legwork - checking stock, prices and negotiating terms. Because brokers have bulk-buying power with dealers, they can often access "fleet prices" that aren't normally available to individuals.
Keep in mind that brokers earn money either through dealer commissions or customer fees, so always ask for a breakdown of charges before committing.
What does a car broker do?
If you're ready to buy a car, a broker can help you through the entire process. This can include sharing different types of cars if you don't have a specific model in mind.
When you know what car you want, the broker contacts 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.
Beyond simply finding you the best price, most car brokers will:
- Source vehicles across multiple dealerships and compare offers.
- Arrange inspections and vehicle appraisals.
- Organise test drives locally.
- Negotiate dealer add-ons such as window tinting or extended warranties.
- Help secure car finance, insurance, or extended protection plans.
- In some cases, assist with selling/trading in your old vehicle.
Should I use a car broker?
You might benefit from using a car broker if:
- You don't have time to negotiate with multiple dealers when buying a car.
- You're unsure what car best suits your needs.
- You want access to fleet or wholesale pricing.
But you might avoid using one if:
- You enjoy negotiating and want direct control.
- You're comfortable researching dealers and prices on your own.
- Broker fees push up the final price compared to what you can secure 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 bought 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.
New car data
According to the Federal Chamber of Automotive Industries (FCAI), 1,237,287 new vehicles were sold in 2024.
At Finder, we conducted a survey to understand how people are purchasing vehicles. The live survey of over 11,000 respondents showed that around 12% of Australians currently have a car loan in July 2024. That's equivalent to 2.5 million people.
Source:
Finder Consumer Sentiment Tracker July 2024
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 typically pay 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.
How to find a car broker
There are 3 main ways you can find a car broker:
- Contact an independent car broker.There are dedicated car broker businesses operating around Australia, which you can search for online, in local business directories or by asking people you know.
- Auto club services. Some auto clubs and service subcriptions, such as RACQ or RACV, also offer car broker services for members.
- Car loan providers. Finder research has found 9% of Australians plan to take out a car loan to buy a vehicle at some point. So if you're planning to get a car loan to buy your vehicle, some lenders also offers free car broker services as part of their loan.
Frequently Asked Questions
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