Top 10 Reasons To Use A Car Finance Broker
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 10 reasons you should go to a car finance broker:
-
Using a car finance broker is FREE
-
Finance brokers save you time
-
It pays to compare - and to limit your loan enquiries
-
Take Advantage of Expert Analysis
-
Experience Personalised Service
-
A Car Finance Broker Will Save Money
-
Find Vehicles on Your Behalf
-
Run Roadworthiness Checks
- wheels and tyres
- brakes
- steering
- suspension
- body rust or damage
- windscreen
- lights
- seats and seatbelts
-
Reduce The Stress In Purchasing A Car
-
They Work for YOU!
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. And 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 car finance 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.
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 a shortlist of the best options for you, taking any guesswork out of deciding whether you'll be better off with a chattel mortgage car or regular new car finance.
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. Your broker will present you with detailed information, outlining the pro and cons of the best options for you.
This gives you 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.
A finance broker has access to over thirty 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 by getting the best car loan rates.
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 and takes the hard work out of comparing car loans.
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 will 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 of lenders would be suit their financial profile, even if you have poor credit.
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 car finance deal suggested will one that you can afford, taking your personal circumstances into account.
As car finance brokers in banks or car dealerships are often limited to car finance products, they may overlook the personal financial profile and needs of the individual in order to obtain business.
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 to help ensure you don’t pay too much for a vehicle by cross-checking the market value or finding a vehicle for you.
Your broker can even investigate and pursue your ideal vehicle on your behalf. This reduces the stress and strain of shopping around. Once the right vehicle is found, the broker can negotiate the price of the vehicle on your behalf with the car dealer or private seller. This ensures that a legitimate deal being brokered, and that you get your new car for the best price.
Your broker will even provide a complimentary Personal Property Securities Register Check to ensure a fair deal is done.
Your car finance broker will run a road worthy check or obtain the safety certificate. This check covers:
This will occur before any deal is signed off on. This gives you the confidence that you are getting a good deal, protecting you financially and emotionally.
Find a local mechanic that's tested and trusted using this guide to repairers with Auto Accreditation in your State.
Your finance broker will represent you in all communication with the lender, and with the seller of the vehicle you choice. 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!
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 and on finding the loan products that are in your best interests.
How do you know if you have a good car finance broker?
Ask your finance broker to provide you with testimonials from clients they have dealt in the past. Don't forget to look at the brokers social media profiles like Facebook or Google as well
Tom Caesar is the Managing Director of The Positive Group, a group of Australian financial services companies offering a broad range of finance to clients Australia wide. The Positive Group assist clients in the areas of car finance, mortgages, insurance & wealth management. Tom has been in car & asset finance for over 10 years. Tom regularly contributes articles on car finance, insurance, technology and business growth, drawing on his experience of starting his own brokerage in 2009.