How to Become an Auto Broker

An Auto Broker (AB) acts as the intermediate person between the potential buyer of new or used vehicles and the dealers. You can work either in a traditional way or opt for working as an online auto AB. Either way; this is an ideal position if you want to increase your earnings by doing something in addition to your present income. Almost all car buyers are not professionals at buying cars, so they need the assistance of professionals like ABs. Apart from this, they don't want to get themselves entwined in the confusions of finance, tax and other aspects.

Many Americans own cars. So, you can make a lot of money in the used cars sector also. ABs can obtain higher incomes in the pre-used car market because their profits are greater in contrast to new car sales. Moreover, due to economic recession, new sales are relatively much lower. This is actually good news for ABs since many potential customers are looking for used cars, instead of buying a new one. The auto market is so huge that there are not enough of ABs to see through all of the deals.

That Broker License

You will need a professional training or education from an experienced car trainer. Generally car dealers like to have a liaison with someone with an AB license. They are always in need of new stock of pre used cars and they generally rely on ABs. If you have a license and solid interpreting and bargaining skills, you can easily supplement your daily and/or weekly income.

Vital Information

  • Learn the basics by joining or ordering any online training kits. (Show preference for a course which helps you to get an AB license that most states in the country honor).
  • Acquire an AB license and start working. (Actually, you need a car dealer license to start as an AB). If you have an AB license, you are entitled to a fee or stipend when you help a buyer purchase a vehicle from a licensed dealer.
  • Find a customer who is eager to buy a car or any auto mobile.
  • Or agree to a contract with the dealers and as their representatives.
  • Give them efficient, reliable and professional service.
  • Form a cohesive relationship with the bank and/or other financial institutions' professionals as it will help you in case the buyer opts for a loan.
  • Standby for your newly minted income. ABs can earn anywhere from $200 to $2500 per transaction.

Wages and Hours

Since the market is so huge, the competition is lower but the returns are still lucrative. To start this AB semi career does not really demand that much money. ABs don't have to meet the buyers and sellers all of the time - they can work from their home itself. Telecommuting is an option for an AB. Most of the ABs start this as a part time income opportunity. It can consume about 2-3 hours a week and as they climb up the ladder successfully, building more clout, assembling more contacts, their income should rise in proportion. After a couple of years, this could be a full time career.