Becoming an Auto Broker

<table border="1"><tr><td> <b> Education Requirements </b> </td><td> No formal education required</td></tr> <tr><td> <b> Licensure Requirements </b> </td><td> Varies by local, state, and federal laws</td></tr> <tr><td> <b> Key Skills </b> </td><td> Communication, Interpersonal, Persuasive, Motivated, Sales</td></tr> <tr><td> <b> Mean Annual Salary (2020) </b> </td><td> $45,420* (<i>retail workers in the automobile industry</i>)</td></tr> <tr><td> <b> Outlook (2020-2030) </b> </td><td> 1% decline* (<i>all retail sales workers</i>)</td></tr> </table><p><i>Source: *U.S. Bureau of Labor Statistics.</i> </p><h3 id="section---WhatEducationalRequirementsAreThere">What Educational Requirements are There?</h3><p>There is no formal experience or educational requirements to become an auto broker; however, any involvement in the industry is a plus. Mentoring with another independent auto broker or car dealership will provide valuable insight into how the business runs and how to deal with clientele. To be a successful auto broker, one must know about typical automobile sales before he or she can help others and turn a profit. </p><p>Although no formal education is required, one can obtain professional training at an automotive school. For example, the National Independent Automobile Dealers Association (NIADA) offers a live, 3-day course to learn how to run an independent car dealership and webinars for selling online. </p><h3 id="section---WhatAreSomeCareerPathOptions">What Are Some Career Path Options?</h3><p>An independent auto broker has more risks as they are self-employed, and profits rely on private sales. Independent auto brokers act as the middle-men between the car dealership, or individual, selling the car in negotiating lower prices for the client. </p><p>Car dealers are the most common form of an auto broker. A car dealer can choose to franchise a dealership allowing a brand to be associated with the business. Franchising is a great way to add value to the company providing the car dealer can afford the associated costs. Alternatively, a car dealer could choose to work under the owner of a car dealership to avoid start-up costs and gain experience. </p><h3 id="section---AreThereLicensureRequirements">Are There Licensure Requirements?</h3><p>Depending on geographical location, an auto broker may be required to provide proof of licensure to sell in his or her state. Each state has different, and varying degrees, of requirements, so it is essential to check your state for specific information. For example, a salesperson may be asked to obtain temporary licensure, permits, fill out applications, and submit applicable fees before legally selling vehicles. A car dealer license is more time-consuming than salesperson license as every state has mandates on how to obtain vehicle dealership licensure. Additionally, there may be location permits and fees relating to the business that have to be acquired before selling. </p><h3 id="section---HowCanIPromoteMyBusiness">How Can I Promote My Business?</h3><p>As a car dealer, auctions and car shows can be a great place to stock a dealership lot. Use the business and relating licensures to help gain access to events and bargain deals. An independent auto broker can use licensures for self-promoting and providing clients with proof of knowledge and skill as a professional auto broker. </p><h3 id="section---HowDoIExpandMyCareer">How Do I Expand My Career?</h3><p>Many licensures require routine renewals and possible fees, so be sure to check what type of licensure you have and if it has an expiration date. Attend conferences, webinars, and seminars to increase knowledge and stay current in the business. Many automotive schools offer such programs to help keep your career on track. The National Independent Automobile Dealers Association (NIADA) has membership programs and on-going training for self-employed auto brokers. Lastly, check with your state of business, as many states have resources for continuing education and local training.</p>