Personal Loans Australia :: Articles

When to use a Finance Broker for Car Loan Finance 

When to use a Finance Broker for Car Loan Finance 

When to use a Finance Broker for Car Loan Finance 
Whether you're buying a car for the first time or you've been through the process before, it's always worth considering whether or not you should use a finance broker to arrange your car loan. In this article, we'll weigh up the pros and cons of using a specialist finance broker so that you can make the best decision for your circumstances.

A Finance Broker, by definition, works for you, not the lender. They should have extensive knowledge of the different loan products on the market and can help you to find the most competitive interest rate.

When you work with a broker, you can expect the help and advice you need to find the right loan for your situation. They'll be able to explain everything about the loans they offer, including interest rates, repayment terms and how much you can expect to borrow.

Car Finance- Quick & Easy
Image for Car Finance- Quick & EasyIf you are in the market for a new or used car, then we're in the market to help you arrange the money. Our car loan & leasing finance service is backed by a national panel of car loan specialists who will establish your eligibility, find lender/s offering the best deals for your situation - and help you through the approval and settlement process. No charge to you - and no obligation to proceed with any recommendations offered.

You don't need perfect credit or any credit at all — most brokers will consider your situation on an individual basis. This means that, if you have been turned down by other lenders or you've had issues making repayments in the past, then a broker may still be able to help you secure a deal.

As long as you are an Australian Resident, have been employed for at least three months and are over 18 years old, then there's no reason why a broker can't help.

Pros:

1. Access to a wider range of lenders:

By working with a finance broker, you'll have access to a wider range of potential lenders than you would if you were to apply for a loan on your own. This gives you a better chance of being approved for a loan the first time you apply.

It's important to remember that every loan enquiry that you make will be recorded on your credit file and could affect your credit rating ... whether you are approved or not.

If you make too many loan enquiries then it will become more difficult to obtain finance. A specialist Car Finance Broker will help protect your credit rating by applying only to lenders that are likely to approve your application, taking into account your specific circumstances.

2. Lower interest rates:

Because finance brokers have access to a wide range of lenders, they can often negotiate better interest rates on your behalf. This can save you money over the life of your loan.

Some of the lenders work exclusively through brokers and many others are accessible through brokers at wholesale or discount rates.

3. One-stop shopping:

Applying for a loan can be a time-consuming and complicated process.

By working with a finance broker, you can simplify the process and save yourself a lot of time and hassle.

4. Expert advice:

A finance broker can provide you with expert advice on the best loan options for your needs and situation. This can be extremely helpful if you're not sure where to start or what kind of loan structure would be best for you.

Cons:

1. Broker fees:

Some Finance Brokers will charge a fee for their services. This fee can range from a few hundred dollars to a few thousand dollars, depending on the size and complexity of your loan.

Whilst you may not be required to pay a fee upfront, out-of-pocket, it may be built into the loan - meaning that you will be borrowing the amount of the fee on top of the loan amount that you otherwise required.

If there are any broker fees payable, you should ensure that they reflect the interest rate savings, the advice, the convenience, lender access and the overall benefits that you would not have otherwise gained.

2. Time:

Working with a finance broker for the first time can take some time, as you'll need to provide them with information about your financial situation and goals.

If you're in a hurry to get a loan, working with a broker may therefore not be the best option for you. Whilst most brokers are well set-up for fast turnaround on loan approvals, in some cases, it may be quicker to phone your bank if you have a healthy relationship with them.

On the other hand, if you want the best deal, it would be well worth contacting a broker. Car loans can generally be approved and settled within a day or so.

3. Loan servicing:

Because they're not affiliated with any one lender, the Finance Broker may not be able to offer you the same detailed level of service or support that you would receive if you went directly to a bank or other financial institution.

So if you arrange your loan through a broker, you will still need to communicate with the lender directly on any administrative issues relating to your loan after it has been settled.

Conclusion

Whilst the benefits of using a finance broker to get a car loan far outweigh the downsides in the vast majority of cases, the decision on whether or not to use a finance broker to arrange your car loan is one that comes down to personal preference.

If you're comfortable doing your own research and you're confident you'll be able to find a good deal, then going it alone may be the best option for you.

However, if you feel like you need a bit of extra help to find the right loan, then using a broker may be the way to go.

Published: Thursday, 18th Aug 2022
Author: Paige Estritori


Personal Loans Articles

Decoding Loan Interest Rates: What You Need to Know Decoding Loan Interest Rates: What You Need to Know
Understanding interest rates is crucial when considering any loan. Interest rates determine how much you'll need to pay back over the life of a loan and can significantly affect the total cost. By gaining a solid grasp of how these rates work, you can make more informed decisions that could save you money in the long run. - read more
Your Financial Comeback: Rebuilding Credit Scores for Future Opportunities Your Financial Comeback: Rebuilding Credit Scores for Future Opportunities
In the dynamic landscape of Australian finance, the emphasis on a robust credit score cannot be overstated. A favourable credit score serves as a gatekeeper to a world of financial opportunities, determining the ease with which individuals can access loans, the interest rates they will be eligible for, and even the prospects of securing a home in an ever-competitive market. As the average mortgage sizes surge to unparalleled heights, the significance of maintaining an advantageous credit profile escalates in tandem. - read more
Top Mistakes to Avoid When Applying for a Loan Top Mistakes to Avoid When Applying for a Loan
Applying for a loan can be a daunting process, filled with numerous requirements and potential pitfalls. However, avoiding mistakes is crucial to boost your chances of approval and secure the best possible terms. Making errors during your application can lead to unnecessary delays, higher interest rates, or even denial. - read more
How to Improve Your Credit Score for Personal Loan Approval How to Improve Your Credit Score for Personal Loan Approval
Understanding what a credit score is and its importance is crucial for anyone seeking a personal loan. A credit score is a numerical representation of your creditworthiness, typically ranging from 0 to 1200 in Australia, provided by credit reporting agencies. - read more
The Ultimate Guide to Repairing Your Credit Score Fast The Ultimate Guide to Repairing Your Credit Score Fast
A credit score is a numerical representation of your creditworthiness. It's derived from your credit history, which includes the total amount of debt you have, your payment history, and other financial behaviours. - read more
Personal Loan Pitfalls: How to Avoid Common Mistakes in Loan Comparisons Personal Loan Pitfalls: How to Avoid Common Mistakes in Loan Comparisons
When considering personal finance in Australia, personal loans are a handy resource for achieving various financial goals, from consolidating debt to funding a major purchase. Yet, it's essential to approach this financial tool with caution and understanding. Proper comparison of personal loans can be the difference between a financial stepping stone and a stumbling block. - read more

Finance News

Increasing Number of Qualified Financial Advisers Opt Out of Practice Increasing Number of Qualified Financial Advisers Opt Out of Practice
11 Jul 2025: Paige Estritori

Recent analysis from WealthData indicates a growing trend among financial advisers in Australia, where a significant portion of those who have successfully passed the financial adviser exam are opting not to practice. As of now, 5,096 individuals, representing 33.31% of active advisers, have chosen not to proceed into practice after passing the exam—up from 28.36% a year prior. - read more
Melbourne's Housing Market: A Prime Opportunity For Buyers Melbourne's Housing Market: A Prime Opportunity For Buyers
11 Jul 2025: Paige Estritori

The Reserve Bank of Australia (RBA) recently surprised many by maintaining the interest rate at 3.85%, against expectations of a cut. This decision is seen as a measure to continue moderating inflation, but it simultaneously delays potential spikes in the housing market, providing a favorable window for prospective homebuyers. In particular, Melbourne's current market presents significant value, offering a promising opportunity for those looking to enter the property market. - read more
Improving EOFY Planning: The Call for ATO Portal Access for Advisers Improving EOFY Planning: The Call for ATO Portal Access for Advisers
09 Jul 2025: Paige Estritori

In a recent discussion, James O'Reilly, Director and Financial Planner at Northeast Wealth, underscored the benefits that could come from granting financial advisers access to the Australian Taxation Office (ATO) portal. Speaking on The ifa Show, O'Reilly proposed that this access would significantly simplify the services financial advisers provide to clients, particularly at tax time and the end of the financial year (EOFY). - read more

Need Help Finding a Loan?
Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check!
Loan Amount:
Postcode:
All finance quotes are provided free (via our secure server) and without obligation. We respect your privacy.

Knowledgebase
Annual Percentage Rate (APR):
The annual rate charged for borrowing or earned through an investment, expressed as a percentage.