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Dealerships & Banks vs Car Finance Brokers: Who To Trust?

Swimming the murky waters of car finance can be treacherous if you go it alone. Between negotiating with the dealership on the price of the car and ensuring all of your ducks are in a row financially, the added strain of attaining finance for your purchase can be enough to sink any deal.

A car purchase can involve a lot of moving parts, and it can often feel like you’re in an uphill battle against the bank and/or the dealership. Car finance brokers exist to make this process less strenuous and a lot more transparent.

What is a Car Finance Broker?

Car finance brokers are there to act as your advocate to banks and other lenders. When you enlist the services of a car finance broker, you are provided with access to the widest range of finance products, countless banks and lenders, as well as a plethora of finance approval pathways to ensure you are awarded the best deal on the market.
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Why not attain finance directly from a dealership?

While certainly a possibility for car buyers, use extreme caution when financing through a dealership. There are three key things to keep in mind:

Car Dealers are not finance experts

    • At a dealership, you are likely dealing with a car salesman who has been lucky enough to be promoted to a business manager. They are exempt from some of the requirements of the National Consumer Credit Protection Act which is designed to protect you bad finance outcomes.

One Size Fits All

      • You will likely only be offered the rates of one or two lenders, meaning you are stuck with a very limited set of approval pathways, conditions and interest rates.

Profits > Relationships

      • We can’t stress this enough, car dealerships are there to make money, not foster relationships. Once the transaction is complete, their level of support may greatly diminish.

Why not finance directly through a bank?

Unless you have an existing relationship with a bank, it can be quite difficult to get car finance, and it’s hard to know whether or not you’re getting the best deal available to you. Keep the following in mind the next time you pop into your local branch:

Limited Options

      • While you’ll be speaking with a qualified individual, you’ll only be offered one set of approval pathways, conditions and interest rates.

They aren’t your advocates

      • Dealing directly with your chosen financial institution can certainly have its benefits, however, you won’t be offered the same qualified advice as a car finance broker who has your best interests at heart. While the advice from a bank may be worthwhile, there is a great deal of tunnel vision involved which may leave you missing out on better deals you’d be eligible for elsewhere.

A car finance broker will be in your corner during your car buying journey to ensure you’re offered as many car loan options as possible, and help you decide on the one that suits you and your lifestyle the best. You would be doing yourself a disservice if you didn’t consider them as an option, if not only for some friendly advice.

If you feel like you’re ready to take the next step and would like the support of a car finance broker, Auto Car Loans are here to help. You can give us a call on 1300 301 051 or reach out at any time at [email protected] to get started.

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