You probably don’t know why you need a car finance broker
Excuse the tired cliché, but given historically low rates, more car loan products available than ever before and the money being a perpetual topic for all Australians, we thought we should look at the role of the car finance broker and explain why you need one.
Car finance is becoming more complex all the time, and there’s very little awareness of what car finance brokers do, and how they can help the borrower.
Essentially, a car finance broker puts the borrower at the centre of the process.
Let's look at the car market and available finance options. You can get your car loan through your bank, usually a personal loan, another bank to your own or through one specific lender at the dealership, there are also several specific lenders that are not a bank. You can get a straight up car loan, a chattel mortgage, or novated lease if you use it for work or a commercial loan, again if you use the vehicle for business or work.
That's quite some choice, right? But there is also a lot of interest rates, terms, conditions, establishment fees and application criteria to sort through.
The thing is that there are opportunities in all that confusion, and the best way of thinking about how a broker can help you is finding that opportunity in the chaos of overwhelming choice. At Stratton finance we support competition, but more importantly we champion the customer’s best interests. A lot of competition is always better for the consumer, but only when you have a complete view of the market.
If you use your everyday bank for your car loan, you are limiting your scope. And when you go online and do searches for car loans, you must start comparing. And how do you do that with so many products? Will your knowledge ever be as complete as the professional who works full time in this market? Who works alongside other real Australians, families, individuals with individual circumstances every day?
When you're a customer in a complex market, the process is more supply driven than demand driven. That is, you are forced to deal with what is being offered, rather than putting yourself at the controls of what you need.
Using a car finance broker can even this up somewhat: the broker forms a picture of you as a person with a specific situation and goes to the market. When you have an intermediary working for you, the market bids for your business. You can't really do this as a customer who’s just approached your bank.
When you use a vehicle finance broker you save time and energy, and you are more likely to find a car loan not only at the lowest cost but with the best features for you.
Most car finance brokers not only have industry expertise to draw on, they also have technology platforms that give them detailed access to a much greater variety of vehicle loan than the average consumer can access. Australia’s largest car financing broker Stratton Finance compares over 15 lenders and 100’s of products to get you the best deal.
Car finance brokers don't compete with banks. In fact, banks and other lenders support brokers, because lenders want borrowers and brokers have the borrowers.
‘If you're looking for car financing, try a broker. Check their credentials, ensure they are members of one of the peak bodies and always be honest about your details. And then judge the results for yourself.’ Said Stratton CEO Rob Chaloner.