You can get a car directly from a dealership or through a broker who deals with dealerships on your behalf. Both routes end with a car from a dealer. The difference is how the price is arrived at, and who is negotiating it.

If you have not come across brokers before, what an auto broker is covers the basics. This post compares the two routes. It sits in our comparison hub, lease vs finance a car.

Whose side each is on

A dealership sells its own inventory. Its salespeople are there to sell those cars at a healthy margin. That is not a criticism, it is what a dealership is. Many are straightforward and fair to deal with.

A broker is hired by you to find the car and negotiate the deal, usually by getting several dealers to compete. The broker's job is to get you the best number available, not the best number at one particular store. How a broker is paid affects this, so it is worth knowing. See how car brokers get paid.

Price

At a dealership, you negotiate against one dealer's inventory and margin. You can improve your position by getting quotes from other dealers yourself and playing them against each other. See how to negotiate a car lease.

Through a broker, that competition is the service. Brokers also tend to know which dealers are motivated, which incentives apply, and what a good money factor looks like for your credit tier.

Either route can produce a strong price. The broker route saves you the work of creating the competition yourself.

Time

At a dealership, expect several hours for a single visit, more if you negotiate hard or visit several stores.

Through a broker, most of the process happens by phone, email and text. You often only deal with the paperwork and delivery. See car lease home delivery.

Choice

At a dealership, you choose from that dealer's stock, or what it can trade for with other dealers of the same brand.

Through a broker, you can compare across brands and across many dealers at once, including dealers outside your area. See buying a car out of state.

Test drives and seeing the car

A dealership has the car on the lot. You can sit in it, drive it and take it home the same day.

A broker usually expects you to know what you want. Many buyers test drive at a local dealer first, then use a broker to get the price. That is entirely reasonable.

Service after the sale

Warranty work and servicing are done by any authorised dealer for the brand, whichever route you bought through. The relationship with a local service department can matter to some people, and buying locally can help with that.

Cost

A dealership charges nothing extra to deal with, though its fees and any add ons are part of the deal.

A broker may charge you a fee, be paid by the dealer, or both. The fee is worth paying when the broker's total deal beats what you could get yourself.

When each makes sense

Go direct to a dealership if you enjoy negotiating, want to buy today off the lot, or have a trusted local dealer you already deal with.

Use a broker if you want dealers competing without doing the legwork, value your time, want to compare across brands or areas, or want someone checking the numbers and the paperwork on your behalf.

The short version

A dealership sells its own cars and negotiates for itself. A broker shops many dealers and negotiates for you. Both can deliver a good deal; the broker saves time and creates the competition, the dealership offers immediacy and a local relationship.

If you want to see what a broker's numbers look like against a dealer quote you already have, send us the quote.