Did you know that around 90% of all car sales in Australia are arranged through car financing? That’s a significant number of car loans! Of those, 39% are arranged through dealer finance, while the remaining 61% are via “other sources”, including brokers. Why choose a car finance broker? Because there are significant advantages of broker financing for cars.
In this article, we’ll discuss the top reasons to use a car finance broker, while also explaining what exactly a car loan broker does.
Car Buying with Car Financing
Using a finance broker to secure a car loan is very similar to using a mortgage broker when applying for a home loan. They’re experienced industry professionals who can help make the process of getting car financing much easier. They do this by comparing car loan products from different lenders and ascertaining which one is going to be the right solution for your current and future needs.
Top 8 Reasons to Use a Car Finance Broker
There are many excellent reasons to use a car finance broker when thinking of car financing. These include:
1. Wider Range of Loan Options: This is one of the greatest benefits of car finance brokers. A broker gives you access to multiple lenders and customised loan packages. In contrast, dealer finance is often limited to a specific lender that has partnered with the dealership. With a broad range of lenders and products to choose from, you’re more likely to find the best car loan to suit you.
2. Expertise and Experience: An experienced broker will have a thorough knowledge of the Australian car finance market and pre-existing relationships with a wide panel of lenders. This will give them the ability to negotiate better terms for your car loan.
3. Time and Convenience: Car buying with finance brokers allows for a streamlined application process and faster approvals. This is particularly the case when you can apply for pre-approval online.
4. Potential for Better Rates: Brokers are often able to access car financing products with lower interest rates. This could potentially end up saving you thousands of dollars over the life of the loan.
5. Personalised Service: One of the great advantages of broker financing for cars is the ability to receive tailored advice. A car broker will be able to review your financial situation and then make specific recommendations customised to your needs.
6. Transparency: Even the most financially savvy individuals may find themselves a little lost when wading through the fine print. A finance broker will have a clear understanding of all loan terms, fees, and conditions. More importantly, they’ll be able to explain them to you.
7. Stress Reduction: Applying for a car loan can be an unbelievably stressful process. However, an experienced broker will handle all the paperwork and negotiations for you. You won’t need to stress about missing details or chasing up applications – your broker will take care of everything.
8. Protect Your Credit Score: One of the main benefits of car finance brokers is their ability to protect your credit score. If you’re shopping around for finance at multiple dealerships then you could end up with multiple credit checks being run in a short space of time (potentially causing real damage to your credit score).
Muscle Money’s Car Financing Brokerage Services
Now that you know why to choose a car finance broker, the big question is: how do you choose the right one? With Muscle Money, you get the convenience of a tech-driven online platform combined with the experience of industry professionals. Muscle Money’s car brokerage services include a:
- 24/7 online portal, so you can get pre-approval at a time that’s convenient for you.
- Easy online application process.
- Support from a team of experts dedicated to helping you get the right car loan.
- Surety that your credit score will be protected (because we know how important it is!)
Applying for car financing can be stressful – but it doesn’t have to be. With Muscle Money, you can get the car loan that you need, whether it’s for a regular car or an electric car, and with the features that you want. Get started today with our online portal or contact our friendly team of experts for some tailored advice.
Caleb Waye-Harris, Senior Manager of Asset Finance at Muscle Money, has almost 15 years of relevant experience in the finance industry. His extensive background includes project management, consumer and commercial lending and asset-based lending.
