Buying a car is a major financial decision which intimidates many people. Even worse, car finance can be a very complex financial product for both consumers and business owners to grasp, especially since there are so many factors involved. Here’s how mortgage brokers can help you deal with car finance!
Competitive Rates & Financial Products
To get the best deal, mortgage brokers can work with you to compare different car loans, including interest rates, general terms and conditions, upfront and ongoing fees, repayments, the loan term, and eligibility criteria. Mortgage brokers can negotiate with lenders to find the perfect car loan for you, potentially saving you thousands in fees and interest.
For business owners, choosing whether to buy or lease vehicles is another important decision that mortgage brokers can provide assistance with. Even when leasing a car, it can become even more complicated since there are different car leasing options available, such as an operating lease, or a finance lease (where you make regular payments and can choose to pay the residual value of the car, or swap the lease over to a new vehicle).
Professional Knowledge & Expertise
As a buyer, you also need to consider other aspects such as registration, stamp duty, car insurance and running costs (e.g. fuel, maintenance and servicing). Some lenders can offer loans which cover some of these costs, along with the car payment itself. Mortgage brokers can also help you access this car finance since they are well-connected with multiple lenders, and have stronger vehicle financing industry knowledge.
Additionally, since brokers have established relationships with a broad range of lenders, they have access to the lender’s wholesale interest rates that generally are not offered directly to borrowers. This means that there’s a much higher chance that you’ll get a better deal since brokers have a very detailed knowledge of policies and rates of different car loan options.
By working together with your broker, you can also gain advice to help with your car loan application if you’re in a difficult financial situation. These issues can revolve around barriers of self-employment, poor credit rating, or difficulty securing pre-approval. Brokers have dealt with many scenarios involving car finance, so they can more easily work with lenders to approve loans to borrowers under a similar circumstance.
If you’re looking to find the perfect car finance option, then don’t hesitate to contact our brokers.