cars, utes

Hansy Mannil Jul 10, 2023

You chose your new car, picked the trim level, and even talked to the dealer about adding on some extras, but what about finance? Dealer finance is a convenient option for some and can save a lot of time and hassle, however like any product and service there can also be some drawbacks. Let’s look at what you get.


You walk into a dealership, test drive a car, pick your model, and arrange finance all in the same place. For the busy car buyer, this makes dealership finance a really attractive option.

Guaranteed finance (almost)

The dealer wants to sell you that car, and they’re going to pull out all the stops to make it happen.


Tell the dealer how much you can pay and they will arrange all the finer details of your finance. A finance broker (like Stratton) is also a convenient option that will also go above and beyond the call of duty to secure your finance but more on that later.

Lack of transparency

There is a lack of transparency in dealer finance, and the rate the dealer secures with the lender isn’t necessarily the rate they will offer you. Some dealers will mark up your monthly payment so they can make a profit from your finance deal, and there is no limit to how much they can increase your interest rate. This is going to change on 1 November 2018, when ASIC makes changes to flex commissions. However, until then, be aware that the dealer is making money on both the sale of the car, and your finance.

An expert in cars, not finance

The dealer is an expert when it comes to cars but maybe less so when talking finance. A car loan is one of the biggest financial commitments you can make, so it’s in your best interests to have an expert in your corner (you do know that car finance is our thing, right?)

You are no longer in control

As the buyer, you should be in control and have a choice of lender. When you go through a deal, there is usually only one option for finance.

Lack of support

Once you drive off with your car, the dealer’s job is finished. Any problems with your finance and you’re on your own.

There are many honest and trustworthy car dealers out there who will try their best to help you out in any way that they can. Like we mentioned earlier, car dealers no matter how honest they may be, are not finance experts.

Stratton Finance is Australia’s leading car finance broker. Our finance consultants go above and beyond in their quest to find you the best finance to suit your circumstances and needs. So team up with an expert and give us a call today on 1300 787 288.

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