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Reviewed by A car finance broker is an accredited individual or company that acts as a middleman between you (the borrower) and your lender (such as a bank or online provider). Their job is to help you find the best car loanĀ that suits your 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 buyerās behalf. This saves both time and money in the process.
Working with a car finance broker like Savvy simplifies the financing process and helps you secure the most favourable terms. You can get the wheels in motion on your car finance deal with aĀ quick and easy no-obligation quoteĀ with us today! We have have a national network of Australian based brokers ready to help you. They can even walk you through the car loan application process.Ā
The pros and cons of using a car loan broker
Through their existing relationships with lenders, brokers can negotiate cheaper rates and better deals on your behalf than you might be able to.
You wonāt have to worry about spending hours comparing options and preparing your application. A broker does all that for you.
Brokers know what theyāre doing, so you can lean on them throughout your application and ask any questions you might have.
The best brokers will have plenty of lenders to compare for you. Savvy has more than 40 trusted partners across the country.
Some brokers charge fees for their service. Itās important to understand what these are before you sign off on the loan.
Brokers wonāt be partnered with every lender on the market. If youāre speaking to a broker with a small lender panel, they may not get you the best deal.
What to look for when choosing a car finance broker
- Credentials:Ā ensure your broker holds a valid Australian Credit Licence (ACL) issued by theĀ Australian Securities and Investments Commission (ASIC). You can verify their licence details on the ASIC Connect website. If your broker isnāt accredited, walk away.
- Experience:Ā consider the broker's experience in car finance. Ask about their record working with clients with similar financial profiles in the past. Look at their website and social media or check independent resources such as theĀ Australian Business Register (ABR).
- Communication and transparency:Ā choose a broker who communicates clearly and transparently and keeps you informed at every step of the process. If you donāt trust the broker youāre talking to, itās better not to proceed with them.
- Fees and charges:Ā enquire about their fee structure and any additional charges for their services. While some brokers charge a flat fee, others may receive a commission from lenders for referring clients and not charge you directly.
- Lending panel:Ā a strong and diverse lending panel can make a significant difference when it comes to comparing your options. This will give you more confidence that your broker is doing all they can to lock in your ideal loan.
- Reviews and recommendations:Ā check online review platforms and ask friends or family for recommendations for reputable car finance brokers. This tells you more about the brokerās professionalism, reliability and customer service.
WHAT OUR CUSTOMERS SAY ABOUT THEIR FINANCE EXPERIENCE
WHAT OUR CUSTOMERS SAY ABOUT THEIR FINANCE EXPERIENCE
Savvy is rated 4.9 for customer satisfaction by 6123 customers.
How are car finance brokers different from lenders?
As mentioned, brokers act as intermediaries between you and the lender. Their role is to compare a wide range of lenders and apply for a loan on your behalf to get you approved. They have both the knowledge and tools to do a soft enquiry on your credit and match you with a lender that you're more likely to be approved with. Your broker isnāt approving the loan and giving you the money.
When you apply with a lender, however, youāre dealing with them and them alone. Theyāre the ones that you apply to, have your profile assessed by and (if approved) receive your money from. Crucially, though, they can only offer you loan products provided by them. Thereās no comparison that takes place.
Can I use a broker if I have bad credit?
Yes ā if your broker is partnered with flexible lenders, like Savvy is, they may be able to help you secure a bad credit loan. Because of the relationship between brokers and lenders, your broker may be able to point you towards a financier whose requirements you meet.
If youāre out on your own and donāt check lending criteria, you could end up submitting applications that are automatically declined. 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. This reduces the chances of errors or oversights that could lead to rejection.
Helpful guides on car loans
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Explore a range of car finance options with Savvy. Get started with a free, no-obligation quote today!
