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When it comes to buying a car, many Australians turn to car loans to help complete the purchase. Indeed, in 2023, the value of new fixed term loan commitments for the purchase of road vehicles in Australia was over $15.5 billion, according to the Australian Bureau of Statistics’ lending indicators.
However, navigating the world of lenders and loan options isn’t always simple. That's where car finance brokers like Savvy come in handy. Find out all about what we do to help you seal the car finance deal and the benefits of applying through us in our handy guide!
What is a car finance broker?
A car finance broker is an accredited individual or company that acts as a middleman between the borrower and lenders (such as banks) to help the borrower find a car loan that suits their needs. With access to a wide range of loan options from their partnered lending panel, brokers will search for the best deal on the car buyer’s behalf, saving them both money and time in the process.
Whether you are purchasing a new or used car, working with a car finance broker like Savvy can simplify the financing process and ensure that you secure the most favourable terms for your car loan. You can get the wheels in motion on your car finance deal by getting a quick and easy no-obligation quote with us today!
What are the benefits of applying for car finance through a broker like Savvy?
There are a number of advantages to applying for a car loan through a broker like Savvy, including:
- Access to a wider range of loans: brokers have established relationships with a network of lenders, including banks and finance companies. This provides you with more choices and better potential for finding a loan that suits your individual needs and financial situation. We’re partnered with over 40 reputable Australian lenders, enabling us to pick out the most suitable deal available for your profile with more confidence.
- Able to negotiate better deals: with plenty of experience in car finance and existing relationships with lenders, car finance brokers are best placed to negotiate a better deal on your behalf. They can often access interest rate discounts or offers that individuals wouldn’t have otherwise been able to receive, saving you more cash in the process.
- Guidance through the application process: the car loan application often involves extensive paperwork. Brokers provide clear guidance, ensuring you complete all necessary forms accurately and efficiently, streamlining the process. With Savvy, you can submit all your documents online via our secure portal and we’ll prepare your formal application for you.
- Time and effort saving:Â brokers like us handle the legwork of contacting multiple lenders and comparing loan options, saving you valuable time and effort. We do the heavy lifting for you so you can focus on more important things during the application and approval process.
- Support for any questions you may have: many car finance brokers have spent years in the industry, and even those that haven’t will still have a great deal of knowledge about loans and the process; after all, it’s our job. As a result, your broker will be able to answer any questions you may have, such as which documents you need, how features like balloon payments and extra payments work and more.
How do I get a car loan through a car finance broker?
While each broker will have their own method, the process of getting a car loan will be largely the same regardless of where you apply. The step-by-step guide to getting a car loan through Savvy is as follows:
- Fill out a quick online quote: fill out our simple online quote form. This tells us a bit about you and your profile (such as your employment and income), as well as the loan you’re after and, if you’ve already picked it out, the vehicle you’re looking to buy. This should only take you a few minutes to complete.
- Submit your application: if you choose to do so, you can fill out your initial application after you’ve completed your quote. This is a bit more in-depth but is still a convenient online form. This will also involve submitting documentation to verify your application, such as ID, payslips and access to bank statements.
- Speak with your consultant: if you’ve just submitted a quote, one of our friendly consultants will reach out to you to discuss your situation. However, once you formally apply, we’ll get to work comparing options among our lending partners based on your profile. Once we do this, we’ll get in touch to let you know what the best deal available for your situation is. We’ll also let you know if we need any further documentation to verify your details.
- Formal application preparation: once you give us the go ahead and supply all the information we need, we’ll start preparing your formal application to be submitted to your lender. You can be approved as soon as one business day after. However, if your lender requests further documentation, we’ll be able to let you know.
- Document signing and settlement: after you’ve received formal approval, you’ll be sent final documents to sign, including your loan contract. You can do this online through our secure portal. Once all of these have been signed and returned, we’ll handle the settlement and finalise the sale with your vendor.
What is the difference between a car finance broker and a lender?
While both car finance brokers and lenders play essential roles in the vehicle financing process, they have distinct functions.
A car finance broker acts as an intermediary, working for you, the borrower. They search a network of lenders (such as banks, credit unions and online lenders) to find the best loan option based on your needs and financial situation.
In contrast, a lender is a financial institution like a bank, credit union or online lender that offers its own car loan products. They assess your eligibility and offer you their loan terms, rates and fees.
Is a car finance broker the same as a car broker?
No – despite the similar titles, car finance broker and car broker are separate roles providing different services. While a car finance broker specialises in securing financing for the purchase of a vehicle, a car broker focuses on helping buyers find the right vehicle itself.
Car brokers find cars that meet their clients’ needs and specifications, negotiate prices and facilitate the purchase process. There may be overlap in services (some car brokers can assist with financing arrangements and some loan brokers also offer car broking services) but the primary focus of each is distinct.
In short, a car finance broker helps you find the best loan for your car, while a car broker helps you find the best car for your budget. At Savvy, we offer both car finance broking and car broking services. Speak with your Savvy consultant if you don’t have your car picked out yet and our car broker team will get to work finding a suitable model from our national network of dealerships.
How do I choose a car finance broker?
When choosing a car finance broker in Australia, it’s important to find a reputable and reliable professional who can meet your specific needs. Here are some key considerations: Â
- Credentials:Â ensure the broker holds a valid Australian Credit Licence (ACL) issued by the Australian Securities and Investments Commission (ASIC). You can verify their license details on the ASIC Connect website. Accredited brokers adhere to industry standards and ethical practices, providing you with peace of mind throughout the financing process. If your broker is not accredited, walk away.
- Experience: consider the broker's experience and expertise in the car finance industry. A seasoned broker with a proven track record of success is more likely to have the knowledge and connections needed to secure favourable loan terms on your behalf. Ask about their experience working with clients with similar financial profiles and loan requirements or research the company. Look at their website or social media or check independent resources such as the Australian Business Register (ABR).
- Communication and transparency:Â choose a broker who communicates clearly and transparently, keeping you informed at every step of the process. They should be readily available to answer your questions, address concerns and provide regular updates on your loan application.
- Fees and charges: enquire about the broker’s fee structure and any additional charges associated with their services. While some brokers charge a flat fee or commission, others may receive compensation from lenders for referring clients and not charge you directly.
- Lending panel: it’s worth looking for a wide lending panel that can offer you a variety of car loan options to choose from. A strong and diverse lending panel can make a significant difference when it comes to comparing the options on offer to you, as you can have more confidence that your broker is doing all the research they can to lock in your ideal loan.
- Reviews and recommendations: check online review platforms and ask friends or family for recommendations on reputable car finance brokers. This can provide valuable insights into the broker’s professionalism, reliability and customer service.
Can a car finance broker help me if I have bad credit?
Yes – if your broker is partnered with flexible lenders who specialise in working with borrowers with bad credit, like Savvy is, they may be able to help you secure a loan. Because of the nature of the relationship between brokers and lenders, your broker may be able to point you in the right direction towards a financier whose requirements you meet.
If you’re out on your own, you may end up submitting enquiries with lenders whose criteria you don’t meet. A finance broker will have extensive knowledge about which of their lenders (if any) can work with you. They can also ensure all documentation is complete and accurate before submitting an application, which reduces the chances of errors that could lead to rejection and harm your credit score.
At Savvy, we’re here to help. Regardless of your credit score or financial situation, we’ll take the time to consider your situation.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for car loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.
