How to Choose a Car Loan Broker

Financing a car has never been easy. There are hundreds of car loan lenders in Australia that are ready to swamp you with their options. Still, the best way to ensure that you get the ideal lender is looking for a car loan broker to assist you.

Thanks to them, you can now get advice on a car that rhymes with your budget and get effective methods to approach a car lender. Besides, they know which lenders are open in the market for faster transaction.

This brings us to this question: What is the difference between a car loan broker and a car lender?

A car lender is a company that finances the car you want to purchase. It might be a reputable Australian bank or a credit union. On the other hand, car loan brokers are financial experts that look for car loan products from lenders to give you the best deals.

When searching for a car loan broker, these are the four things you must take into account.

1.   Find an Expert in the Field

You don’t want to make a mistake in the field of finance. It can cost you a lot of money or make you end up with a damaged credit file. With this in mind, you don’t want to hook yourself with a newbie in the industry who doesn’t know how things work.

Ask yourself if the broker understands the business. What is their reputation in the industry? Does he have client testimonials as proof that he has helped someone get a car loan before? Besides, the broker should have well-informed advice which they only get after years of experience.

Not to forget that they must have professional and knowledgeable staff. They should be ready to explain between different products, and you can reach them at any time with any query.

2.   Must be Licensed and Accredited?

The Government of Australia requires that all car loan brokers must be licensed by the ASIC which give them the go-ahead to operate lawfully under their guidelines. In addition, they should be a member of the Finance Brokers Association of Australia.

This information should be readily available on their website or in every transactional communication. Due to the seriousness of this matter, it should be the first thing to check for even before you begin interacting.

If a company can’t provide any of these, know they are trading illegally and it wouldn’t be wise to deal with them.

Besides, the broker must be accredited with the lender they collaborate with. The advantage of the partnerships is that the broker gets the latest product terms and lender policies from the lender.

3.   The Services They Offer

The perfect car loan broker should offer other services apart from bringing numerous lenders into their platform. At the same time, they shouldn’t be scanty when offering the services.

For instance, they should provide information for the time you need to wait before you get the cash. You also need to know if there are additional fees that are attached to your financing.

In a nutshell, the brokers should seamlessly compare the cost of your financing package and your recommended vehicle financing. The faster they do this, the better they are suited for the contract.

4.   The Number of Lenders the broker Has

As said earlier, a broker connects you to the lenders they already have in their platform. With this in mind, the perfect car loan broker should have as many collaborators in their platform as possible.

What does this mean?

They can offer you many car loan options which are right for you. A dealer with a few lenders doesn’t have much to offer and may limit your car financing search.  The good thing is that it does not cost you a penny even if you use a broker with hundreds of lenders.

The Takeaway

There is a lot of responsibilities when it comes to purchasing a car today. Similarly, the processes to follow may be an uphill battle. Car loan brokers come to take away this stress.

This is why buyers don’t bother checking how big a brokerage company is, all they need is to get someone that cares about their time and will help them get their desired car very fast.

Financing a car has never been easy. There are hundreds of car loan lenders in Australia that are ready to swamp you with their options. Still, the best way to ensure that you get the ideal lender is looking for a car loan broker to assist you.

Thanks to them, you can now get advice on a car that rhymes with your budget and get effective methods to approach a car lender. Besides, they know which lenders are open in the market for faster transaction.

This brings us to this question: What is the difference between a car loan broker and a car lender?

A car lender is a company that finances the car you want to purchase. It might be a reputable Australian bank or a credit union. On the other hand, car loan brokers are financial experts that look for car loan products from lenders to give you the best deals.

When searching for a car loan broker, these are the four things you must take into account.

1.   Find an Expert in the Field

You don’t want to make a mistake in the field of finance. It can cost you a lot of money or make you end up with a damaged credit file. With this in mind, you don’t want to hook yourself with a newbie in the industry who doesn’t know how things work.

Ask yourself if the broker understands the business. What is their reputation in the industry? Does he have client testimonials as proof that he has helped someone get a car loan before? Besides, the broker should have well-informed advice which they only get after years of experience.

Not to forget that they must have professional and knowledgeable staff. They should be ready to explain between different products, and you can reach them at any time with any query.

2.   Must be Licensed and Accredited?

The Government of Australia requires that all car loan brokers must be licensed by the ASIC which give them the go-ahead to operate lawfully under their guidelines. In addition, they should be a member of the Finance Brokers Association of Australia.

This information should be readily available on their website or in every transactional communication. Due to the seriousness of this matter, it should be the first thing to check for even before you begin interacting.

If a company can’t provide any of these, know they are trading illegally and it wouldn’t be wise to deal with them.

Besides, the broker must be accredited with the lender they collaborate with. The advantage of the partnerships is that the broker gets the latest product terms and lender policies from the lender.

3.   The Services They Offer

The perfect car loan broker should offer other services apart from bringing numerous lenders into their platform. At the same time, they shouldn’t be scanty when offering the services.

For instance, they should provide information for the time you need to wait before you get the cash. You also need to know if there are additional fees that are attached to your financing.

In a nutshell, the brokers should seamlessly compare the cost of your financing package and your recommended vehicle financing. The faster they do this, the better they are suited for the contract.

4.   The Number of Lenders the broker Has

As said earlier, a broker connects you to the lenders they already have in their platform. With this in mind, the perfect car loan broker should have as many collaborators in their platform as possible.

What does this mean?

They can offer you many car loan options which are right for you. A dealer with a few lenders doesn’t have much to offer and may limit your car financing search.  The good thing is that it does not cost you a penny even if you use a broker with hundreds of lenders.

The Takeaway

There is a lot of responsibilities when it comes to purchasing a car today. Similarly, the processes to follow may be an uphill battle. Car loan brokers come to take away this stress.

This is why buyers don’t bother checking how big a brokerage company is, all they need is to get someone that cares about their time and will help them get their desired car very fast.