What is a Car Loan Broker, and Why Should I Use One?
When obtaining finance for a new car, you might wonder, “what is a car loan broker, and why should I use one?”
This question is a common one asked by many looking to purchase a new vehicle – and for a good reason!
A car loan broker is someone who helps you to obtain finance for your new car.
Along with simplifying the process, there are plenty of other benefits that it’s important to be aware of.
If you’re looking to finance a new car, read our blog for more information on why you should use a car loan broker for your next purchase.
What is a car loan broker?
A car loan broker is an accredited finance professional who can assist you with purchasing a new car.
Instead of having one preferred lender (like dealerships often do), they have access to a variety of lenders and can get you the best deal.
Car loan brokers have your best interests in mind and are constantly scouring the market for competitive interest rates and packages for you.
A car loan broker works a little differently from a car dealership finance.
They work for you and have your best interests in mind when securing you the best deal.
When you’re on the hunt for a new car, it’s hard to go past a car loan broker.
What are the benefits of using a car loan broker?
A car loan broker has plenty of benefits you can tap into when looking for your next car.
Some of these include the following:
- You’re likely to get the best deal or package as the broker has access to a wide variety of lenders and products. They can shop around for value, including finding the most competitive interest rates.
- They can tailor your loan to work for you. This includes finding the optimal loan length and whether you’d like a balloon payment at the conclusion of your loan.
- Unlike most dealerships, a car loan broker can get you to finance both new and used cars.
- Your broker does all the heavy lifting for you and is the middle person between you and the lender.
What process does a car loan broker go through?
When securing your finance for a new car, your car loan broker will be with you every step of the way.
Generally, obtaining a car through an Inovayt finance broker might look like this.
- Chat with a vehicle and equipment finance broker with a free, no-obligation meeting.
- Your broker will discuss your needs with you, including your ideal loan term, balloon payment and any other requirements you have. They will give you an idea of how much you can comfortably borrow, taking into account any deposit you have.
- It’s time to go shopping! Research your cars and do as many test drives as you need to find the right one.
- Once you’ve found ‘the one’, let your car loan broker know. They will now work with various lenders to find the best loan product for you.
- Once your loan is approved, you can drive away in your new set of wheels.
Why should I use a car loan broker over dealership finance?
On paper, dealership finance and using a car loan broker may appear the same, but there are some key differences.
While finance brokers have access to a range of lenders and work for you, dealerships are often affiliated with one lender, with their pure objective to sell the car.
It may seem like they’re working on getting you a better deal, but dealerships can manipulate the loan terms, often playing around with a larger balloon payment so you can ‘afford’ the car.
The appeal of dealership finance is that you can get your car on the spot.
However, waiting a little bit longer for finance through your broker can save you hundreds, even thousands, of dollars.
How much does it cost to enlist the help of a car loan broker?
If you choose to use an Inovayt car loan broker, you can be assured that you won’t pay any upfront fees.
Any broker fees are paid with your loan and lenders work with a broker to ensure they are paid for their work.
It’s important to note that while brokers do charge fees for their work, these fees are significantly less than fees charged by dealerships, and you’re getting a much better deal.
How can Inovayt help me to purchase my next vehicle?
If you’re on the hunt for a car, our Inovayt car loan brokers are here to help.
Whether it’s your first car or your next car, our expert team has access to a variety of lenders and products, with a dedicated team working and advocating on your behalf.
We’re constantly working hard to find you the best deal and simplify the buying process for you.
How can I get in touch with a car loan broker?
If you want to purchase a car, get in touch with one of our Inovayt car loan brokers today, or try our car loan calculator below and get your new asset sooner.