A car loan broker can add a lot of benefit when shopping for the best car loan. As a car loan broker is required to adhere to strict licencing guidelines that dealership finance managers or direct bank staff don’t have to, there are certain levels of protection for the consumer that can make using a car loan broker a very wise choice.
A car loan broker will have many financial institutions on their lending panel, which can make shopping for the best car loan a much quicker, less timely process. A good car loan broker can quickly sift through all the lender’s policies and guidelines to ensure you are not applying to the wrong lender. Not only can they get you the right lender, but get you the best deal for your circumstances.
Quite often you can apply from the comfort of your own home. These days with technology, you can submit everything online and either upload or email your supporting documents. Gone are the days where you needed to go out on knock on all the bank managers’ doors pleading your case to get you the best deal.
Believe it or not, but due to the volumes car loan brokers provide their lenders; they will often get cheaper interest rates than what you could get yourself. This comes down to buying power, a car loan broker will be giving multiple finance deals to their lenders each month, where the consumer may get a car loan every two, three or seven years whatever it may be. The financiers are competing for the brokers business due to the volume they do each month, which result in better deals that can be passed onto their clients.
This could go either way, as if your broker is not experienced and doesn’t understand the implications of multiple applications to multiple financial institutions in a short time frame, this could impact your borrowing power. Make sure you find a good qualified, experienced broker that will know and understand where to place your loan first time, preventing multiple hits on your credit file. Don’t be afraid to ask them what experience or qualifications they have, as they are dealing with your creditworthiness.
A good car loan broker can give you valuable advice in regards to their lender’s features and benefits, and they can also highlight any downfalls in comparison to other lenders features allowing you to make an informed decision as to which car loan best suits your needs and requirements. They should know all the fine print that many wouldn’t read or know unless someone highlighted this to them.