Not entirely sure if this is the place to post this BUT, I’ve recently been considering becoming an auto broker but not entirely sure how to go about it. I live in New York so do you need a license to be a broker? Also does anyone on here have tips on becoming a new broker? Any feedback is much appreciated.
I’d probably try to get my foot in the door as a car dealer first before trying to do this on your own and learn how it works. Otherwise do a lot of research on this forum and learn how leasing works and stuff
Need a license and probably a physical location. Check the dmv website.
What about working as a "auto consultant or client advisor " , does it required licence? By the end of the day there is no broker name on lease contract. Can LH brokers help us out on this topic?
@Bostoncarconcierge
@nyclife
@HN308
An example below
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Aside from registering, you need a $100,000 bond. The New York market is very saturated, so aside from anything else, I would suggest you don’t even think about brokering unless you have a lot of experience with cars and have a lot of connections.
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Ah, so you want to be lied to buy customers AND dealerships.
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It would be the Western New York region, I know downstate is super saturated but there’s a total void up here. I have a fair amount of connections with area dealerships and a lot of experience in sales and the car industry
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You still need $100,000 for a bond, no matter what.
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so you think I would be better off as just a sales consultant that has connections and could help people here and there, while collecting a small fee for my services?
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That’s still brokering…
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This is an interesting topic!!
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I’ve always wondered how many of the “Brokers” on LH are licensed.
@michael, @littleviolette: when you grant the broker tag do you verify local law compliance?
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by definition a consultant is different than a broker…you don’t need to have a certification or license to be a consultant.
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They do not. These laws are state by state.
Also, the scope of work dictates what you are required to do.
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No, it is each individual “broker’s” responsibility to ensure they are in compliance with their state regulations.
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1% of them
They are not vetted. They also take full responsibility should they not follow the law and get caught. The onus is on them.
If you are taking money from someone to sell them the name of a dealer, you are brokering per most state law, NY included, regardless of what you call yourself.
This has been discussed multiple times throughout the forum, I have brought it up personally many times.
You do need a brokers license, surety bond, and physical location in order to operate as an “auto broker” in the state of New York. Please see this link to see all the details:
https://www.dos.ny.gov/licensing/auto/index.html
I would say a solid 95% of the Brokers in here from New York don’t have the correct bonding and licenses in order to operate in New York State, and typically most New York dealers won’t even take the deal if you don’t provide them with proof of the license and bond.
The Brokers here get around this by sending their business to surrounding Jersey and Pennsylvania stores where it isn’t regulated as much and thats how they can continue to do business without being bonded or licensed.
New York is probably the most saturated market when it comes to auto brokers, there’s literally hundreds of them varying from low level fly by night guys to big dog operations that move 100-200+ cars per month.
thank you so much this was extremely helpful. I apologize for not doing more research on the forum before asking this question…
I always ask brokers if their company is LLC, S-Corp, etc. I also ask their email address and follow-up by saying I am surprised they operate with a yahoo or gmail account. Then I finally tell them either way I don’t pay brokers and get a rush of dopamine that lasts 3.2 seconds.
Edit: I am surprised how often customers call in pretending to be a broker.
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Do you happen to know the laws or can link me to the NJ laws and regulations for this? I’m only finding info the an actual physical dealer. I’m interested in becoming a broker in NJ