What Questions Do Car Loan Brokers Ask?
When you’re looking for a car loan, a broker is one of the best advantages you can have - but they’ll need to know a little about your circumstances.
That means broker questions.
Brokers need to ask you a few important questions to match you to the perfect loan product with the best rates and conditions possible. Here’s what and why a broker may ask you.
Brokers in a nutshell
A broker is someone who arranges transactions between buyers and sellers, in other words, they bring buyers and sellers together.
Brokers have the tools and knowledge to locate, screen and match the right buyers and sellers.
They offer fast solutions so that sellers, and especially buyers, don’t have to do the research, trial and error themselves.
There are some key categories that brokers question clients about. They need to know some key information about who you are, what you want to buy, and how you'll repay the loan.
Basically, they need to present a snapshot of a client that shows they can afford the loan.
Who are you?
When you apply for a car loan, you'll need to provide some information about who you are, including identification.
Your broker will ask things like
- What is your country of citizenship?
- Are you on a VISA or a Permanent Resident?
- What’s your address?
What do you want to do with the money?
Your car loan broker needs to know some information about the car you intend to buy to match you with the right loan product.
More common broker questions
- Are you looking to buy from a dealer or private seller?
- What type of car and purchase price do you need?
- How much do you want to borrow?
If you’re not sure, no problem. Brokers can update information later down the track.
It’s good to have an idea of at least, makes and styles you like, for example a Toyota or Ford ute or SUV.
How will you repay the loan?
To assess your current financial profile and identify how much surplus income you have to put towards your purchase, your car loan broker will ask questions about your:
- Residential and lifestyle profile
This information assists the lender in making an informed decision on your approval.
Broker questions aim to find your length of employment, employment status (eg. full time, part time, casual) and other questions to check your affordability for the loan.
Some examples of these questions include
- What is your income?
- How long have you been with your current employer?
- What household expenses do you have? (phone, insurance, entertainment, food, bills)
- Do you foresee any changes in your circumstances that would prevent your ability to repay the loan?
- What is your marital status?
- Do you have any dependent children?
Brokers need to know about your marital status and dependent children
About the loan
- What repayments are affordable in your budget?
- Brokers also investigate details on your credit file, to ensure our application is the first and is approved successfully.
- Have you ever been bankrupt?
- What do you know about your credit history?
- Have you had previous car loans, personal loans, or mortgages?
Why is each question important?
Each of the questions a broker asks is important in its own right, as it paints a picture for the lender.
The better we know our clients, the better the deal we can get for you - and faster.
Some lenders have different policies and processes and as such, we need to tailor our questions to suit their requirements, to ensure a fast approval.
What are some questions your car loan broker won’t ask you?
Brokers will not need, and should never ask about sexual preference, race, or religion. Also, if on Disability Support Pension they will not need to know about the reason or type of disability.
Some lenders and loan situations require information on a borrower’s partner's income, employment status and credit history. This may seem a little intrusive, however, it shows the households affordability, even in the event of a single applicant on the loan.
If you and your partner keep your finances separate and private, no problem. Simply inform your broker of this and they’ll contact your partner separately and keep those details for the lender only.
Honesty is, of course, the best policy. If you’re vague or give unclear answers, brokers will likely push for more clarity. If they don’t provide lenders with the documented information they need, there’s a higher chance an application will get declined.
For example, if an applicant says they have a perfect financial history, but it’s later found they have unpaid defaults, it can hinder a loan approval.
If you find a broker question a little intrusive, don’t hesitate to ask why they need such information.
Solution: remember that brokers are on your side and want your loan to get approved - it’s their job! Be totally upfront and honest when answering broker questions.
Apply for a car loan
When you're ready to apply for a car loan, a professional from Positive can guide you through the process.
If there's ever anything that you aren't sure about, ask your broker and they'll be happy to explain.
Using a broker is the easiest way to get a loan, so whether you're an experienced borrower or it's your first time applying, you'll have a better car loan experience with a broker who takes time to understand your needs.