Ever wonder why some people use a car finance broker when buying a car instead of going to the bank or trusting in dealership financing? Want to buy a car but don’t know which option is best? This article should help you answer these questions.
Buying a new car is an exhilarating experience, but it’s not a cheap move to make. So, before you fall in love with your next car, make sure you’ve got the financing to match. There’s nothing worse than walking into a dealership, falling in love with your dream car – and then realising the financing doesn’t stack up. Banish car-buying anxiety today and regain control with the help of an experienced car finance broker.
Why Car Finance Should Come First
When you walk into a dealership without finance, you’re handing all of the control over to the seller. Needless to say, this isn’t a good place to be. They can steer you towards cars in a higher price range and make you feel like you’re missing out if you don’t sign up for dealership finance.
Seeing a car loan broker before you start shopping puts you back in the driver’s seat. With an established budget, you’ll know exactly what you can afford, allowing you to negotiate like a cash buyer and avoid overspending. You’ll also have more breathing room when it comes to purchasing decisions, so you won’t end up paying more with overpriced dealership finance.
What Does a Car Finance Broker Do?
An auto finance broker is a finance professional who can help you secure a car loan. They’re like a mortgage broker, but instead of helping you buy a house, they help you buy a car. This includes new cars, second-hand cars and even commercial vehicles for your business. Some car loan brokers even have a car loan calculator you can use to determine how much you can spend on your next car.
The most important thing to know about a car loan broker is that they don’t work for the bank or the dealership, they work for you! This means you don’t have to worry about ulterior motives and whether or not you can trust them. Unlike a bank or dealership finance lender, a broker’s main priority is to secure you the best loan to suit your financial needs.
Compare Your Car Finance Options: Bank, Dealer or Broker?
Around 90% of car sales in Australia are purchased using some kind of finance. While 40% of car finance will be secured through a dealership, the majority will opt for an alternative form of finance. This will either be arranged through a broker or directly with a lender. Since there are pros and cons to each of these options, it’s always a good idea to consider your circumstances before deciding how you’re going to apply for finance.
before deciding how you’re going to apply for finance.
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Bank/Personal Loan |
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Dealership Finance |
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Car Finance Broker |
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Auto Finance Broker: Tips for Getting Car Loan Ready
A little advance preparation will make the finance process easier and help to ensure your application is viewed in the best possible light.
To get yourself car loan ready, start by:
- Checking your credit score.
- Establishing a budget.
- Deciding how you’re going to use the car (personal vs business use).
- Gathering necessary documents (including photo ID, proof of income, recent bank statements, etc.).
- Contacting an experienced car finance broker for some expert advice.
Top 6 Benefits of Using a Car Finance Broker on the Gold Coast
- Get Access to More Lenders
Don’t limit yourself to a specific lender. With an auto loan broker, you gain access to a wide range of different loan products from an extensive panel of lenders. This ensures greater flexibility and better rates.
- Save Time and Stress
With a car finance broker, there’s no need to chase banks or scroll through endless comparison sites. You’ll save yourself time (and stress!) without having to compromise on the end result.
- Better Rates and Loan Features
Brokers may have access to exclusive deals not available to the public. This gives you greater choice over the setup of the loan, the features and what kind of interest rate you’ll have.
- Pre-Approval Before You Shop
With a pre-approved car loan, you can walk into a dealership and tell them exactly how much you have to spend. There’s no haggling over prices or added pressure to spend more.
- Unbiased, Expert Advice
Remember that car loan brokers work in your best interests – not the lender’s. This means you can trust a car finance broker to give you expert, unbiased advice, with no ulterior motives.
- Support from Start to Finish
From the initial application right through to loan settlement, your auto finance broker will be there to offer expert guidance, answer any questions you may have and provide much-needed support.
PLS is an Auto Loan Broker You Can Trust
To ensure you get the car loan that is best for you, contact the experienced team of car loan brokers at Professional Lending Solutions. We can answer your questions, compare loan products and help you find the right solution for your driving needs.
To get started on your next car-buying journey, contact our friendly team of car finance brokers today.
Phil’s journey from banking to mortgage brokering reflects a career driven by a commitment to personalised service and tailored financial solutions. With a distinguished background in banking, including roles at NAB, ANZ and Lloyds TSB Bank in the UK, Phil spent 12 years developing expertise in personal and commercial finance, while also completing a Bachelor of Business (Finance), followed by an MBA majoring in International Business.