How to Become a Used Car Broker

The used car business is very popular in many countries. Millions of used cars are sold daily round the world. In some countries poor train and water transportation makes vehicular transport number one.

Many families have at least one car in the garage making car dealership very lucrative. Selling used cars is highly profitable and fun.

The used car broker is an intermediary between the auto dealer and the customer. He finds the customer and brokers the deal with a partner dealership.

His job also entails securing lower prices for clients and finding the appropriate vehicle. The broker’s business template is that of a sole proprietor. You make money strictly from commissions or an agreed sum.

It depends on which side of the fence you operate. If you represent the car dealer then you take commission from him. If you are no the side of the customer they pay an agreed sum.

The most common method used by brokers to make money is through an auto dealer.

Sources of Used Cars

Auto Brokers need to find a ready source of vehicles. This is the easiest part because used car dealerships abound in every corner.

Used car dealers need all the help they can get because it is difficult to find customers on a daily bases. You can sources the vehicles from car dealers, private individuals and neighbors.

 Other ways to get vehicles are accidental cars, public auctions and impounded vehicles.

Sources of used vehicles in Nigeria

1 Impounded vehicle by the custom agency

2 Imported vehicles via the sea ports

3 Vehicles bought from neighborhood countries

4 Forfeited vehicles because of bad loans

5 Public auctions

6 Company clearance sales and auctions

7 Some are bought directly from owners

The Auto Dealer

There are three kinds of used car traders. We have the used car dealership, individual sellers and the broker. The auto dealer has an outlet that displays his cars and sells to customers.

The dealer is bound to his immediate community or area. Apart from stocking used cars they also have high end automobiles.

African countries are huge importers of used cars. They buy from countries like Belgium, United States of America, France and United Kingdom.

Some of the cars undergo conversion if the steering wheel is on the wrong side.

Buying Used Cars

What is your preferred way of buying used cars?

Top of Form

• Buying used cars online
• Buying from a used car dealer
• Buying from friends and acquaintances

What you Need to know as a Used Car Broker

You need to learn the tricks of the trade. You can learn from practical experience or through an apprentice program.

Other ways are from tutorials, books or online sites. Knowledge is very important in the automobile industry because you need to know a lot about cars.

The broker should know the more popular brands, car performance, price range, insurance, and engine performance. You need technical knowledge and on the job training.

Other requirements are joining trade associations and trade groups.  As a self employed individual you can choose your hours and work schedule.

The major requirement is networking with auto dealers for cars and commissions. Remember you get paid only when you make a sale.

You job entails finding clients interested in buying cars. Popular brands are Toyota, Peugeot, Hyundai, and Kia.

You need to find the right car for customers to make a sale.

Ways to Become a Used Car Broker

1 The used car broker can start as an apprentice

2 He can work as a used car sales person

3 Learning technical skills

4 Knowledge of the automobile market is compulsory

5 The broker is at liberty to join an association

6 He needs to get accredited licensing as a broker

7 He should be competitive, work long hours, find paying clients and offer great deals.

8 Understudy another automobile broker

9 Buy your own used cars and sell to clients

Places a Broker Can Source his Cars

The main sources used by brokers are automobile dealers, auto-car shows, and public auctions. Other important sources are online free classified, auto marts, and individuals.

The automobile broker can also buy used cars with the purpose of refurbishing them and offering them for sale. Federal and state licensing laws differ so make sure you operate accordingly.

Conclusion

Automobile brokerage is good business if you can find paying customers and offer good service. Finding the buyers should be your priority then offering best deals.  

A good recommendation from satisfied customers goes a long way.