Buyer's Agent
 Colorado is the only state that has, by law, a distinct category of "auto broker" identified as a "buyer's agent." Unlike other "broker-dealers," the buyer's agent must strictly represent the consumer. For a fee paid by the consumer working with a buyer's agent is guaranteed that the best commercial discount price negotiated by the buyer's agent will be the price the consumer pays, with no middle-man mark-up. Since a buyer's agent may only profit from the fee paid, this type of broker cannot profit from a consumer's trade-in through the purchase of a trade-in from the consumer. A broker-dealer is, by virtue of a used car dealer's license, free to buy trade-ins from their clients and resell them for profit.When a broker is not a buyer's agent, the State of Colorado requires the broker to be licensed as a used car dealer. With a used car dealer's license, the broker is entitled to buy and sell cars, and profit from the transaction itself, whether or not a fee is charged. They also buy and sell trade-ins for a profit. Colorado state statute also requires car dealers who are brokers to disclose the fact that they are dealers in their advertisements, and a prohibited from creating the false impression that they are a buyer's agent. Whether the broker is a buyer's agent of a broker/dealer, working with a broker can make the process of buying or leasing a vehicle more pleasant and efficient. |
