California Auto Brokers Agreement

California Auto Brokers Agreement: Understanding the Fine Print

As a resident of California, you may have considered using an auto broker to help you purchase your dream car. An auto broker can negotiate on your behalf, saving time and money in the process. However, before you sign on the dotted line of a California Auto Brokers Agreement, it`s crucial to understand the fine print.

What is an Auto Brokers Agreement?

An Auto Brokers Agreement is a legally binding contract between you and the auto broker. This agreement outlines the terms of the transaction, including the commission the auto broker will receive for their services. In California, auto brokers are required to be licensed by the Department of Motor Vehicles (DMV). As a result, the DMV has established regulations and requirements for the content of an Auto Brokers Agreement.

What Should You Look for in an Auto Brokers Agreement?

When reviewing an Auto Brokers Agreement, there are a few key components to focus on:

1. Commission: The agreement should clearly state the commission fee the auto broker will receive for their services. In California, this fee cannot exceed 10% of the purchase price of the vehicle.

2. Services Provided: The agreement should outline the services the auto broker will provide, including negotiations with dealerships, vehicle inspections, and paperwork processing.

3. Responsibilities: The agreement should outline the responsibilities of both parties, such as the auto broker`s responsibility to disclose any known accidents or damages to the vehicle.

4. Dispute Resolution: The agreement should include a clause that outlines the steps to take in case of a dispute between you and the auto broker.

5. Termination: The agreement should outline the circumstances under which you or the auto broker can terminate the agreement.

What Are Your Rights as a Consumer?

In California, consumers have certain rights when working with auto brokers. These include:

1. The right to receive a copy of the Auto Brokers Agreement before signing.

2. The right to cancel the agreement within three business days of signing.

3. The right to request a copy of any document related to the purchase of the vehicle, such as the bill of sale or title.

4. The right to file a complaint with the DMV if they believe the auto broker has violated any regulations or rules.


Working with an auto broker can be a great way to save time and money when purchasing a vehicle in California. However, it`s essential to understand the fine print of the Auto Brokers Agreement before signing. By focusing on the commission, services provided, responsibilities, dispute resolution, and termination clause, you can ensure that you are getting the best possible deal. Remember, as a consumer, you have rights, and it`s crucial to exercise them if needed.