What Is a Finders Fee With Buying a Car?

by Michael Ryan

When buying a car, a finders fee is a charge that is paid to the new or used car broker, if you are completing you transaction with one. For the fee, the broker negotiates on your behalf to get the best deal possible.

Features

Brokers can offer any type of new or used vehicle, as long as they have the right connections with dealerships and auctions.

Benefits

A broker is an experienced negotiator, who is in tune to current market conditions. A broker can provide upfront pricing and minimize the amount of haggling necessary to buy a car.

Types

A finders fee may be a set amount charged by the broker, or it may equal a percentage of the purchase price of your new vehicle.

Misconceptions

The finders fee is not always paid directly to the broker. If you are visiting a dealership to pick up your vehicle, it may collect the finders fee with your payment and forward it to the broker.

Warning

A consumer shopping for a used car has lots of pricing information available via the Internet. The consumer may be able to do independent research to negotiate a good price, avoiding the finders fee altogether.

About the Author

Michael Ryan is a freelance writer with professional experiences in the auto industry and academic training in music. Ryan earned a Bachelor of Arts with honors from Olivet College. Since college, he has been a featured speaker at music conferences at the University of Michigan and Bowling Green State University. Ryan is a published writer, with work featured on websites including eHow and CarsDirect.com.