What Should I Ask My Car Loan Broker?
When you take out a loan, you'll get a better deal if you are in control of the process. At Positive Lending Solutions, we are always happy to answer any questions you have, so don't hesitate to ask! To get you started, here's a list of broker questions you may want to know.
Broker questions to ask before you get a car loan
Here are the broker questions you should ask to ensure that you're getting the customer service that you expect and the car loan that's right for you.
1. How much can I borrow?
Knowing how much you can borrow, based on your financial profile, will allow you to set a budget for your loan and to start planning ahead.
If you're buying a car, you can start to research suitable makes and models. If you're using the funds for another reason, you can plan ahead.
Remember that when you ask how much you can borrow, you need to ask what your loan repayments will be too. This allows you to take the bigger picture into consideration when budgeting for the future.
Your car loan broker will be able to accurately tell you how much a lender will lend you, using their specialist knowledge of the different lender's criteria, and the financial information you'll provide in the loan assessment.
2. Can I pay out my loan early?
If you expect to repay the loan before the due date, and this is important to you, be sure to ask your car loan broker about early repayment options. Some lenders will allow you to repay the loan without charging an early payout fee, others will charge a fee.
It pays to find out before you sign the loan contract. Your car loan broker can match you to a lender that will meet your needs for early payment.
3. How long will the process take?
Every lender is a little bit different, so the length of your car loan application may vary. Your broker is familiar with the processing times of specific lenders and will be able to advise you on how long your application should take, based on the lender you have selected.
The loan process can also depend on the asset that you purchase.
You can make your loan settlement as fast as possible by promptly providing your application documents and returning your contract by email. Here's an overview of the car loan application process:
4. What if I don’t want to go ahead with the loan or change my mind?
If you change your mind after the loan has been approved, that's fine, as long as you haven't reached a loan settlement. Just let your broker know that you don't want to go ahead at the moment.
5. I don’t really trust handing my information over, how can I be sure it is safe and won't be given to someone I don’t want to?
Before you start your loan assessment, your broker will send you a 'Privacy Consent' form that explains the service they will provide you, and outlines exactly how the information you give the broker will be used.
Privacy Consent guarantees that the information you provide will be used only for the purposes of assessing your finance application. A broker will never make an application on your behalf without your express consent.
If there's ever anything you aren't sure about, ask your broker why they need that information, and how it's going to be used.
Here's some information on website security when you provide information through an online portal, and when you need to be careful.
6. How long can I borrow the money across?
Depending on the amount you borrow and the purpose of your loan, you can borrow the money for 3-7 years. Ask your car loan broker about your specific options, as they'll be able to give you exact examples for your situation.
Remember that the longer you borrow the money for, the more interest you'll pay over the life of the loan.
7. What kind of vehicle can I get?
To take out a secured car loan, you must by a car or bike that's less than seven years old. Apart from this, you can buy new, used, dealer, auction, private sale - any way you choose.
The type of vehicle that you buy will affect your broker's choice of the best lender for you, so be sure to discuss your intentions with them.
If you do have a unique purchase scenario, such as a vintage car or a highly modified import, ask your car loan broker for specialist lender options.
8. What do I have to do to get the loan started?
The first thing you'll need to do to start a loan assessment and application is to sign a privacy consent form that allows your broker to check your credit and process your application.
After this, your car loan broker will guide you through the information they need for a complete application, based on your financial needs.
9. What documents do you need from me?
To approve your car loan application, a lender needs to know:
- WHO you are
- WHY you need the finance
- HOW you will repay the loan.
This means that you need to provide identification, proof of income, a personal reference and some financial information. The specific information required depends on the loan product you're applying for, so ask your broker what they need to make your approval as fast as possible.
10. Can you help me find the car I want?
Some car loan brokers will provide a vehicle sourcing service to help you find a value for money vehicles to purchase. Ask your car loan broker whether they can help you to find the car, and make the process a whole lot easier for you.
Positive Lending Solutions do provide a vehicle sourcing service which includes delivery to wherever you are in Australia. Vehicles are sourced at wholesale prices, so you may get a better price than you can find locally. Ask about the car you're looking for, or even ask for advice on which models are suitable for your needs to see what's available.
Your car loan broker is there to make your borrowing experience as smooth and enjoyable as possible, plus a Positive car loan broker will always be totally transparent with you and answer any question you want to ask. Try us today!