A broker is a retailer who has the power to transfer title to property, and exercises it, either:
• By holding property title before it is sold,
• By completing a bill of sale to the buyer under power of attorney from the legal owner, or
• By getting a signed bill of sale from the legal owner and delivering it to the buyer. When entering any transactions in which you have the power to transfer title to a vehicle, you are a retailer in those transactions, and must hold a seller’s permit.
An auto broker in simple words is responsible for the process of buying a car on behalf of a customer. Conditions includes finding the desired vehicle, negotiating the price, delivering the final paperwork, and securing financing, if necessary. An auto broker’s job is to help the customer save time and money in the car buying process.
Whereas a true broker’s authority is limited to getting offers from potential buyers and conveying the offers to vehicle owners for their acceptance. Auto brokering, in particular, is a fantastic business model that flat out works once you set a startup. As a broker, you may collect the use tax due on a purchase of a vehicle, as a convenience to your customer.
They assist consumers to save time and effort of having to car-hunt at dealer lots, an activity which most people find to be less than desirable as auto brokers are professional car buyers, to them the entire sale process is typically a straightforward task. As mentioned they have professional relationships with networks of car dealers, they are able to secure discounted pricing that they can then pass along as savings to their clients.
For a much professional dealings automobile broker businesses shall clearly and conspicuously disclose the following in all advertisements in any medium, and in any print advertisement to clear their term and conditions:
- Customers should be aware of the fact that an automobile broker business is not a licensed new motor vehicle dealer as defined in section four hundred fifteen of the vehicle and traffic law.
- If any fees may be imposed by the automobile broker business for services rendered. Details of the compensation should be handed in by the automobile broker business upon request by the consumer.
- It should be clear to the consumers that no warranty repair services will be provided by the automobile broker business.