Let’s reinforce a critical point: only licensed retail dealers with the autobroker endorsement may conduct brokering activities. Vehicle Code Section 11736 sets out the specific restrictions and unlawful acts related to brokering. You cannot broker a vehicle for a customer unless you hold both a valid retail dealer license and the autobroker endorsement. Wholesale-only dealers cannot broker. Salesperson licensees cannot independently broker. Unlicensed persons cannot broker.
The brokering agreement must disclose your fee clearly. The customer must know exactly what they’re paying for your services. The fee can be structured as a flat dollar amount or as a percentage of the purchase price, but it must be disclosed in writing before the customer commits. Hiding the brokering fee or burying it in other charges is a violation.
The agreement should also clearly identify what services you will provide — will you locate the vehicle, negotiate the price, arrange financing, handle paperwork, or all of the above? The more specific the agreement, the fewer disputes you’ll have. If a customer expects you to handle everything from finding the car to delivering it to their driveway, and you thought the agreement only covered locating the vehicle, you’re headed for a complaint.