Using a car finance broker gives you the advantage over those who go directly to the bank, or get finance through the car dealerships.
Here are 8 reasons you should go to a car finance broker:
1. It’s Free
Using a car finance broker is free. Car loan brokers specialise in car finance loans and are commission based. This means that if they don’t find you the best loan product, they don’t get paid. Ánd there’s no obligation when you make a free enquiry.
Finance brokers do not charge to help you find the loan with the most competitive rates and repayments. The broker is paid directly by the lender you choose.This means there is no cost to you, and better yet, the deal you get is likely to be one that you wouldn’t have found on your own.
2. It saves you time
Car finance brokers take the hard work out of seeking out and comparing different types of loans and lenders. The broker will collect information regarding your financial situation. They will then perform a credit check on your behalf. Using this information, the broker uses their expertise and experience to approach lenders. The broker will then present you with the best option/s for you.
This saves you countless hours that could be spent researching options through various banks and lenders, comparing interest rates and repayments and calculating the total costs of each loan.
This gives you the the upper hand when you go out to find your new car. With a pre-approved loan at a competitive rate, you know exactly how much you have to spend. It also means you can explore private car sales to find your perfect car, knowing the loan you need is already in place..
3. It pays to compare – and to limit enquiries
A finance broker has access to over ten lenders that they can use to fund car loans for their clients. With such a large number of lenders, the client will be exposed to multiple lenders which in turn provides a larger choice of loan products and the opportunity to save money on their future car loan.
Each time you make an individual enquiry about a loan with a different lender, a credit enquiry is lodged on your credit report. The more separate enquiries you make, the more marks appear on your credit history.
A finance broker can conduct multiple enquiries on your behalf, after a single credit check. This makes your business more appealing to the right lender.
4. Take Advantage of Expert Analysis
Brokers have qualified knowledge of which lender and their products are best suited to their clients. They not only use their experience to find the best loan for your circumstances, they will also know how to professionally present your financial profile and car finance application, making it an enticing prospect for potential lenders.
Car finance brokers are able to work one on one with their clients to best establish and evaluate their financial profile and needs. With this knowledge, brokers can distinguish which lenders would best suit their financial profile.
5. Experience Personalised Service
Working one on one with a broker helps them customise their service. More often than not, brokers will share their after hours telephone number to ensure accessibility.
It is a matter of convenience meaning that questions or issues are not restricted to bank business hours.
Your broker will ensure that the loan option you choose is tailored specifically to your needs. This means that the loan option suggested will be what you can afford, taking your personal circumstances into account.
As car finance options directly through banks or car dealerships are often limited, they may overlook the personal financial profile and needs of the individual in order to obtain business.
6. Save Money
A finance broker will save you money in the long term by ensuring you get the best deal taking multiple factors into account such as repayments, interest rates, penalties, fees and residual or balloon payments.
They may even be able help to ensure you don’t pay too much for a vehicle by cross-checking the market value or finding a vehicle for you.
7. Reduce Stress
Your finance broker will represent you in all communication with the lender, and with the seller of the vehicle you choose. This will give you the peace of mind that all communication is being handled by a professional. Your broker will keep you fully informed of developments as your purchase is formalised. This removes emotional stress as the broker acts as mediator between yourself, the lender and the seller of the vehicle.
Your broker will assist you to collect all the necessary documentation, and ensure it is accepted by the lender. With pre-approval for a loan, you know exactly how much you can afford before you step out to find your ideal car!
8. They Work for YOU!
A car finance broker is solely working for their client, not for a car dealership or a particular lending institution.
Unlike a comparison website, which may cover only a portion of the market and may rely on lender sponsorship, a broker will focus on you and on finding the loan products that are in your best interests.