4 Reasons To Use A Car Finance Broker
Car’s are expensive. In fact, aside from a house, they’re probably the second largest purchase you’ll ever make. Chances are you’re going to have to take out an auto loan to purchase a car. Unfortunately, finding the perfect auto loan means spending countless hours comparing prices, calling banks, and negotiating with lenders.
However, another option is to find a loan through a car finance broker. Instead of taking on all the stress yourself you can let a broker do all the heavy lifting for you while you enjoy the fruits of their labor.
A car finance broker’s job is to connect people that want to buy a car with bankers that need someone to take out a loan. So, why would you choose to go with a broker rather than do the work yourself and find your own loan? Well, as it turns out there are a lot of reasons to use a broker. We spoke to Dana from Awesome Car Loans who runs a great service for car buyers. Here are some tips from her:
1. Their Service is Free
You would think that a service like this would cost you a lot, but as it turns out you don’t pay a broker anything. The banks actually pay the broker fee as payment for finding them a borrower. So, not only are you getting a very valuable service but the bank foots the bill.
2. A Broker Will Save you Time
Easily, one of the best benefits of using a broker to find a loan is how much time it will save you. The broker takes on all the work for you. After you hand over your financial information to the broker your work is pretty much done. They take over from there.
The lender will perform the credit check for you, talk to lenders on your behalf, and get you the best rates. You don’t have to do anything again until they bring you your best options for a loan. After that, you just get to do the fun part, the car shopping.
3. Loan Comparisons
You might be thinking that you could just hop online and search prices yourself and get the best deal. And, while that is an option it still probably going to cost you more money and, maybe even worse, negatively impact your credit score.
Those car loan sites are generally sponsored by only one lender, so you have to go to multiple sites to get multiple rates. It also means you have to run multiple credit checks and each one of those posts a hit against your credit score. A broker, on the other hand, has access to several lenders so they can compare them and find you the best rate. And, they can do it all while only putting a single hit against your credit score.
4. Expert Vehicle Loan Advice
How much do you know about car loans? Do you know what is considered a good interest rate, what lenders are looking for in a borrower, or really anything about the overall process? I know I don’t, and I’m guessing you don’t either or you wouldn’t be reading this. But, a car finance broker does all of those things for a living.
A broker will not only save you money and find you a great rate, but they’ll also know which lender will work best with your circumstances. They have way more knowledge and experience on the matter than you do, so take advantage of their expertise.
When you look at all of the benefits of using a car finance broker it becomes pretty clear that it’s a much better option than trying to navigate getting a loan on your own. They make the process cheaper, easier, and much less stressful.