car finance broker

finance broker vs car dealer finance

There’s nothing quite like the excitement of buying a car. Whether you’re looking for a reliable workhorse, a people-mover for your expanding family or something a bit flash to go with your recent promotion, buying a car can be exhilarating. But it can also cause a bit of anxiety. Once the thrill of that first test drive wears off, reality sets in, and you suddenly realise that, somehow, you have to pay for the thing! And for most Aussie car buyers, that means you have to make a choice – do you apply for dealer finance or talk to a car loan broker?

Gold Coast Car Loan Broker or Dealer Finance

So, what’s the main difference between using dealer finance or working with a car loan broker on the Gold Coast? Typically, a dealer will have a standing arrangement in place with a preferred lender. So, the car loan that they offer you will be the same loan that they offer to everyone else. In contrast, a car finance broker will have access to a panel of lenders, allowing for more choice and flexibility. 

Obtaining Gold Coast Car Financing Through a Dealership

A lot of car buyers opt for car dealer finance purely for the on-the-spot convenience. It’s a fast and simple way to obtain a car loan. However, this speedy process doesn’t always allow time for an accurate assessment of your financial needs or a comparison of different loan products. So, before you make a final decision about car dealer finance and dealership finance, take a few moments to consider the pros and cons. 

Car Dealer Financing Pros:

  • It’s fast and easy: You agree on a price, sign a few forms and the dealer will sort out the rest. The dealer needs finance to be approved if they’re going to make their sale, so they’re highly motivated to push the loan through ASAP.  
  • It’s an option for buyers with low credit scores: Obtaining a loan usually involves a standard check of a borrower’s credit history. If your credit history is a bit spotty, then you may have issues securing finance. However, some car dealerships might be able to secure finance, regardless of your current credit score.  

Car Dealer Financing Cons:

  • You have less power to negotiate: When you organise finance through a dealer, you have less opportunity to negotiate for a better price. The dealer knows exactly how much you can get approved for, so there’s no motivation to lower the price. 
  • You have to put a lot of faith in your car dealer: How much do you trust the person trying to sell you this car? When they tell you this is the best car finance deal available and that it’s definitely in your long-term best interests, do you believe them? It can be hard to read between the lines when the person selling you the car is also the person organising your finance.  
  • You probably won’t get the best finance deal: When you apply for dealer finance, you’re missing out on an opportunity to compare loan products. This makes it almost impossible to ensure you’re getting the best deal to suit your needs and may end up costing you a lot more over the life of the loan.  

Obtaining Gold Coast Car Finance Through a Broker

A car loan broker on the Gold Coast can also offer a fast and effective method for obtaining car finance. But by using a car finance broker, you’re eliminating a lot of the doubt and risk. At Professional Lending Solutions, we have a team of experienced finance brokers who can help you find a great car loan with a competitive interest rate.

Car Loan Finance Broker Pros :

  • An expert does all the hard work for you: By working with a car finance broker, you gain the support of a skilled industry expert who is willing to do all the hard work for you. We’ll take care of the research, fill in the forms and chase up the lender to prevent delays.  
  • You get access to a wide panel of lenders: A car finance broker uses sophisticated software to compare suitable loan products from a panel of lenders. We’ll compare loan fees, interest rates, features, and the loan term. This enables us to find you the best car loan to suit your needs. 
  • You have an advocate working in your best interests: Finance brokers are committed to working in your best interests. This means we’ll work hard to secure your loan approval…but we won’t compromise your long-term financial wellbeing. Instead, we’ll talk directly with your preferred lender, explaining any irregularities in your application and negotiating for the best possible loan terms. 
  • You can negotiate for a better price: By applying for a car loan pre-approval, you can find out exactly how much you can afford to spend on your new car. This gives you a lot more power when it comes to negotiating the final price of your car because your dealer knows you can’t be talked into paying more. 

Car Loan Finance Broker Cons :

  • You need to plan ahead: The process for obtaining a car loan through a broker can be simple and fast, but it does require slightly more forethought (you can’t walk into the dealership and make a same-day purchase). This is why it’s a great idea to talk to us about pre-approval as soon as you start thinking about buying a car. That way, when you’re ready to actually make a purchase, you’ll have a faster turnaround time on your loan approval.