How to Choose a Car Loan Broker
What should you look for in a car loan broker?
Licensing and Accreditation
The first thing you want to know about a car loan broker is that they are accredited and registered to operate, under the ASIC guidelines.
In Australia, this means that they operate under a financial services licence, and hold an Australian Credit License. This information should be found on the car finance broker website, and in all transactional communications.
A car loan broker also needs to be accredited with each lender whose loan products they provide. This is an ongoing education process that means your car loan broker stays up to date on all lender policies and product terms.
You will want to know that they have a good reputation, through reviews or a referral from a friend. Getting great customer service, as well as accurate, well-informed advice is important.
Lastly, you will want to know if the service will be fast and simple. If someone is helping you with your loan application, you don’t want to do all the work.
What value does a car finance broker provide that a bank can't?
A car finance broker saves the hassle of shopping around. A broker should also take the guesswork out of applying for a car loan. When you approach a car finance broker for advice, the first thing they'll do is look at your finance profile, before shortlisting where you can get the best deals for your loan purpose.
Instead of trying to fit your profile into a limited range of bank products, a car finance broker will find a tailored solution that gives me the most suitable finance product.
There's also extra value of service, including help to find or source a car, and doing the negotiating on your behalf to ensure you get a wholesale best price. Have you seen a bank that can help you find the car too?
To a car loan broker, your loan application is a package deal, provision of a complete personalised service. To a bank, it's just another loan, a basic financial transaction.
Do I need to know exactly which loan I need before I apply?
You don't need to know exactly which loan type you need before starting an application with a broker.
A car finance broker will be able to advise you on the best loan options for your circumstances. They may even recommend a different loan type than the one you were looking for. In any case, you'll have expert advice at your disposal.
Does a car loan broker need to be personable?
From the moment that you first speak to a car loan broker, you should feel welcomed and important. It is important that you can connect with your broker and vice versa, so there is a level of trust.
If the relationship is built on trust, the process will always be faster, and you'll get a better outcome. When you get it right the first time, then you know that you have a car finance broker your can pick up the phone and call for your next transaction, and the process will be smooth.
What licenses and accreditations should a car finance broker have?
Brokers should always be accredited with the lender that they are referring your application to.
This shows that the broker knows and understands the lender, the fees and the process. This helps build confidence that you have someone that is above board and knows what needs to be done.
Your car finance broker should also be operating under a credit licence to make sure everything is above board.
Most of all make sure that the broker also has a personality, as it makes all of the boring stuff easier.
How many lenders does a broker have access to?
Positive brokers have access to a total of 30 different lenders. These might not be accessible for every client, but this is what makes a broker unique.
There are enough options available across this panel for the broker to find a product that they can tailor for your situation.
What experience do brokers have?
The lending team at Positive Lending Solutions contains people with a diverse range of backgrounds, including customer service, sales, car dealership, and even an ex-chef.
This means that we have a team you can connect with on every level, right from hearing out the issue at hand to making you feel welcome and showing that your business and you are important to us.
There can be a few laughs, anxious moments and waits that seem like forever, but with the team here, there's someone who will be the right fit for you, to help.
Does the size of the brokerage and its online presence matter?
Clients don't seem to mind how big the company is. What we hear is they care about the time that we put into them, and that they aren't another number.
It is important to have a strong online presence, as everyone lives in a digital world. But the make and break of the company is word of mouth and reviews.
If our previous service shines through online, the next client will definitely come to us for a solution.
If you're ready to take the next step with a broker, find out how we can help you get the best car loan.