Autobrokers are licensed agents allowed to facilitate a dealer sale and collect a fee. The fee can come from the buyer, from the seller or both parties, as long as full written disclosure is made.
Autobrokers must hold all deposits as refundable in a registered trust account.
Autobrokers, with appropriate license, dealer plates and insurance may deliver vehicles directly to a buyers home or office.
Autobrokers, with appropriate license, may accept trade-in vehicles.
All agents of licensed Auto Brokers must hold a current DMV Salesperson License.
11738 California Vehicle Code
The brokering agreement required by Section 11736 shall be printed in no smaller than 10-point type and shall contain not less than the following terms, conditions, requirements, and disclosures:
(a) The name, address, license number, and telephone number of the autobroker.
(b) A complete description, including line-make, model, year model, and color, of the vehicle and the desired options.
(c) The following statement:
“The following information shall be completed prior to the signing of this brokering agreement:
Dollar Purchase Price of Vehicle: ______.
Date this agreement will expire if a purchase agreement from a selling dealer is not presented for your signature: __________.
Fee that you will be obligated to pay us, if any: __________.”
(d) One of the following notices, as appropriate, printed in at least 10-point bold type and placed immediately below the statement required by subdivision (c):
(1) “We do not receive a fee from the selling dealer.”
(2) “We receive a fee from the selling dealer.”
(e) The following notice on the face of the brokering agreement with a heading in at least 14-point bold type and the text in at least 10-point bold type, circumscribed by a line, that reads as follows:
|This is an agreement to provide services; it is not an agreement for the purchase of a vehicle. California law gives you the following rights and protection.|
|Once you have signed this agreement, you have the right to cancel it and receive a full refund of any money paid, including any brokerage fee you may have paid, under any of the following circumstances:|
|(1) The final price of the vehicle exceeds the purchase price listed above.|
|(2) The vehicle is not as described above upon delivery.|
|(3) This agreement expires prior to your being presented with a selling dealer’s purchase agreement.|
If you have paid a purchase deposit, you have the right to receive a refund of that deposit at any time prior to your signing a vehicle purchase agreement with a selling dealer. Purchase deposits are limited by law to no more than 2.5 percent of the purchase price of a vehicle and must be deposited by an autobroker or auto buying service in a federally insured trust account. If you are unable to resolve a dispute with your autobroker or auto buying service, please contact an investigator of the Department of Motor Vehicles.
(f) The date the agreement is executed.
(g) The signature of the autobroker and consumer.
– See more at: http://codes.findlaw.com/ca/vehicle-code/veh-sect-11738.html#sthash.5u6Bp2HU.dpuf