How to Buy or Lease a New Car in Los Angeles: Dealer vs Broker Guide

How to Get a New Car in LA – Complete Guide!

Hello, this is Suzuki from Eco Drive.

Last time, we talked about how to procure used cars in Los Angeles, America.

This time, I’ll explain how to purchase or lease a new car in LA.

You can check the method for purchasing used cars in the article below:

How to Buy a Used Car in Los Angeles: 4 Proven Options

Please also check out the video version!

Method 1: Purchasing from Manufacturer Dealerships

The first method is purchasing from manufacturer-affiliated new car dealerships.

This is done through dealerships like Toyota or Honda.

Dealerships sell and maintain new cars from specific manufacturers.

There are several advantages to using dealerships.

What Are the Advantages of Manufacturer Dealerships?

Dealerships have actual vehicles available, so you can see, touch, and test drive cars at the showroom.

Also, it’s easier to get information about incoming inventory, and since salespeople have specialized knowledge, you can receive detailed explanations.

These two points are the major advantages of purchasing or leasing from new car dealerships.

What About the Disadvantages?

There are also disadvantages to purchasing or leasing from new car dealerships.

First, since this is America, all interactions are basically conducted in English.

This might feel particularly challenging for those who aren’t comfortable with English.

Furthermore, not everyone provides polite and attentive service like Japanese dealerships do.

Those who have experience purchasing cars at Japanese dealerships might be surprised by this difference in service.

Also, there’s significant variation between individual salespeople, making it difficult to find a salesperson who suits you.

Salespeople May Be More “Pushy” Than in Japanese Dealerships

Also, it’s not uncommon to be recommended or pushed to buy unnecessary accessories after deciding on a car.

Additionally, there are cases where after-purchase follow-up is insufficient.

This also varies greatly by salesperson, so not all customers can be satisfied with the current situation.

Furthermore, when requesting a trade-in at the same time, the price is often set lower.

Considering these points, purchasing or leasing a new car in America requires a certain amount of research and preparation.

Another Disadvantage: Loans and Leases Are Difficult Without Credit History

This is a disadvantage particularly encountered by people who have just arrived in America – loans and leases are difficult at manufacturer dealerships without credit history.

In America, when lending money, they judge a person’s creditworthiness through this credit history (credit score).

Right after arriving in America, you don’t have this score, making it difficult to get loans or leases.

When using loans or leases at manufacturer dealerships, make sure to maintain as high a credit score as possible before negotiations.

Credit History Related Articles:

How to Raise Your Credit Score Fast in the U.S.

Good Credit in the U.S.: Lower Loans, Better Business Deals

Method 2: Using a Broker

Purchasing or leasing new cars through brokers is a method that’s not generally well-known, but surprisingly has many advantages.

Brokers don’t source cars directly from manufacturers; they act as intermediaries with dealerships.

In other words, after receiving an order from a customer, they interact with dealerships and sell as intermediaries.

Normally, this system would seem to cause increased costs.

However, in reality, it’s the opposite – they can often provide cars at lower prices than dealerships.

Brokers Negotiate Directly with Dealerships

Brokers partner with multiple dealerships and negotiate directly with each dealership’s fleet department.

This enables price negotiations without going through salespeople.

They can provide customers with the most cost-effective options while comparing prices from other dealerships.

Especially when dealerships have long-term inventory, opportunities arise to purchase cars at very good prices, making the benefits of using brokers significant.

Rich Variety of Options

Also, while dealerships only handle products from specific brands, brokers can offer diverse products and options.

For example, Toyota dealerships can only offer Toyota-made accessories.

In contrast, brokers can handle products from various manufacturers, such as dash cams, window tinting, and body coating.

This allows customers to select products that best suit their needs.

Close Relationships with Specific Communities

Brokers often have close relationships with specific communities, such as Japanese or Korean communities.

Since they build trust within these communities, they often adopt business models that rely on word-of-mouth, referrals, and repeat customers rather than extensive advertising.

So they may be able to provide more personalized service to customers.

This allows customers to understand fine nuances in their native language and make purchasing decisions.

Disadvantages of Using Brokers

Now let’s talk about the disadvantages.

As a disadvantage, brokers don’t have showrooms like dealerships and often don’t carry much inventory.

So they don’t have actual vehicles on hand, making it difficult to check or test drive cars in advance.

If you want a test drive, you’ll need to be creative – first find a car you like at a dealership, test drive it, then order through a broker.

Since brokers source cars as needed, the opportunity to see and touch actual vehicles is limited – that’s the disadvantage.

Use Dealerships and Brokers According to Your Situation

Another advantage of brokers is that some handle not only new cars but also used cars, and trade-in prices may be higher than dealerships.

In such cases, the overall cost of purchasing a new car may be reduced.

Also, even among brokers, actual services may vary by shop.

In some cases, there are unscrupulous dealers, so whether using dealerships or brokers, I recommend conducting prior research.

Please also check the article below!

Why a Bad Car Is Called a “Lemon”? Lemon Law & “AS IS” Basics: A Used-Car Buyer’s Checklist