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Car Broker vs. Car Buyer’s Agent

Did you know that there is a big difference between a car broker and a car buyer’s agent? Did you know that there are many brokers who promote themselves as being essentially buyer’s agents, but in reality they are brokers?

What’s the difference?

A car broker generally collects fees from the dealer, which the client ends up paying indirectly.

A buyer’s agent is paid exclusively by the client.

Why wouldn’t you want to work with a broker? While brokers offer advantages to the buyer such as a pre-negotiated price, they also collect money from the dealer. This gives them split allegiances.

As a buyer, don’t you want to be the sole provider of compensation for the person helping you? This is the best way to know that your buyer’s agent is in your corner 100% of the time.

Many companies might give you the impression that they are buyer’s agents, including Zag, True Car Pricing, Kelly Blue Book, AutoNation, Autobytel, and the two biggest offenders: Costco and Sam’s Club. But they’re not buyer’s agents. They are brokers and they essentially represent car dealers.

As a car buyer’s agent, Car Pal collects a fee from its clients. However, the net savings is a lot greater. Read more on how this works!

Originally Published October 2016 – Updated March 2019

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