More drivers than ever are choosing to sort their finance first through a broker rather than getting finance at a car dealership. Car finance brokers have risen in popularity as they’re an easy and convenient way to compare multiple finance packages at once! This can help you save time and money when choosing your next car and give you the confidence that you have the right finance deal for you! The guide below looks at how car finance brokers work and the benefits of using one to help sort your next finance deal.
What is a car finance broker?
A car finance broker is a company who works with a range of trusted finance lenders. You make an application with a broker, and they put your application in front of the most suitable lender for your circumstances. This means you can compare multiple lenders at once, without having to make applications with them all. The broker works on your behalf to find you the best finance package with the lowest APR rate. You can then take your deal to any participating dealership to get a car within your budget. Usually brokers work best on used cars but they can also be available to use for brand new cars too.
Benefits of using a car finance broker:
There are a number of reasons why more drivers are choosing to use a broker rather than heading straight to the car dealership.
1. Save time and money.
A car finance broker works on your behalf to select the best finance deal for your circumstances. They have access to a number of lenders and their services are usually free to use. The whole process can be really simple and straightforward, and you could even have your new car in a matter of days!
2. Bad credit friendly.
When you use a broker for cars you can increase your likelihood of approval even if you have bad credit. There are many bad credit specialist brokers who work with lenders that offer bad credit services. It can be harder to get approved with mainstream or ‘prime’ lenders when you have a low credit score as they usually reserve their deals for people who are less of a risk to lend to.
3. Get the car you want.
For many drivers one of the biggest selling points of brokers is the freedom to get the car you want. By sorting your finance first with the lender, you can walk into a FCA approved dealership just like a cash buyer, but with the knowledge that you have the best finance deal for your circumstances! You can choose any used car from any participating dealership and usually the broker also liaises with the dealer on your behalf too!
4. Protect your credit score.
When you make applications with multiple lenders in a short space of time, you can run the risk of damaging your credit score. When you apply with lenders, they will perform a credit check on your and frequent credit checks at once can have a negative impact on your credit score. You can protect your credit score by using a credit broker as you only need to apply the once and they do the leg work for you.
5. Expert knowledge from your account manager.
When you apply with a broker, you will usually be assigned your very own finance expert who will handle your application. Your point of call will be able to use their expert knowledge to find you the best finance package for your circumstances. They work with you to find a deal that first your budget and also helps you choose the car that’s right for your needs.