Is it true that Broker can get "wholesale" price better than dealer?

My understanding of “brokers” is they charge me for doing the search and negotiation job for me, same deal as i spending time doing it myself. But recently, my colleagues started using a broker claiming they can get deals better dealers, which they call it “wholesale”. I’m just curious is it true using a Broker can get the best deal in addition to saving time to do it by yourself? if paying them a couple hundreds and save me thousands plus the time i need to spend doing it, it doesn’t seem like a bad idea, isn’t it?

Not necessarily. It depends on the relationship the broker has with the dealership they’re working with, how many connections they have, etc. Could a broker get you a better deal…maybe. Could they get you a better deal quicker than you could…most likely. Will they always do better than you can do yourself…no.

It comes down to a value proposition. If spending a few bucks will save you time and headache for a good deal…you need to determine if it’s worth paying them to do it, or doing it yourself.

It also depends on the broker. Some are paid by the dealership, so you need to ask whether your best interests are really being taken into consideration. Those that ask for a fee and don’t work for a dealer theoretically would be more inclined to work in your best interests.


The broker cannot get the car cheaper than the dealer can. However, they may be able to get a better deal than you can negotiate yourself.


Considering brokers don’t have a relationship with the manufacturer of the cars, no, they don’t “wholesale” anything.

A broker can develop a relationship with many dealers to get pricing based on volume that an average customer can’t offer, who is only going to be buying a car every 3 years or so. They can also “cut through the fat” of negotiating and get to a real price faster than anyone walking into a dealership. A broker also knows the market and can possibly cast a wider net in a search as well.

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The car comes from the dealership. Manufacturers dont have relationships with brokers so there is no "wholesale ".

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True wholesalers are the guys who buy it AFTER your lease is done. That’s a whole different game.

I’ve never heard of wholesaling new cars. Brokers can’t get new cars cheaper than a dealership. A broker simply acts as the middleman between the buyer and the dealership.

Maybe your friends are talking about used cars and auction purchasing?

Good relationship with a salesperson and their sales manager goes a long way too.

On both my X2 deals I showed them some creative options for lowering payments which I’m sure over time will serve them far more than the money they could have made on my deals on your average customer.

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It is sad when we have to educate them on how to better structure a deal.


Thank you very much for all your fast and valuable. I’ve got a better idea now. Thank you.

In their defense they are a relatively new BMW dealer.

Yeah, I know. Didn’t mention wholesalers…discussed his general question on brokers.

In my experience dealers barely even know about the cars let alone financing. I was explaining the cars features to my sales guy when I test drove. For real.


Doesn’t mean the F&I people are brand new. They probably worked somewhere else before this center

Oh yeah, the F&I lady knew about what could be worked on.


IMHO, this depends on (1) your flexibility in selection; (2) the geographic area, (3) the timing (incentives), (4) your ability to negotiate, and (5) the broker’s network.

In SoCal, my broker was able to get terrific deals on four out of five cars i had there. In New England, I tried working with brokers three times (one was out of state), and every time I was able to do better than the brokers. Flexibility is the key - if one wants an E450W, they should be able to take a 540xi or an A6, otherwise they are at the mercy of one brand.

I’m in SoCal. A little attempting to try a broker now. :slight_smile: But they charge $200 to start, will get it back if close the deal with them. Maybe I will see if can negotiate a term with them that if i get better deal, they need to match or refund.

There are brokers here who don’t charge the customer. What car are you looking at?

Looking for aged inventory is a pretty good angle toward getting a hot discount (unless this somehow bothers you)

If they aren’t charging the customer how are they making money?