Financing a Car in Australia: Tried, True, Proven Methods16 January 2022
Financing a car in Australia has never been easier. We really are fortunate to have many options available to get us behind the wheel of our new vehicle. So, have you ever wanted to know why people use finance brokers rather than simply visiting the bank?
Brokers use their experience in auto financing to save people time and money when it comes to getting a loan. In addition, car loan brokers use their networks to find competitive rates and terms, helping you get the best deal along with your new car, van, ute or SUV.
What’s a Car Finance Broker?
A car finance broker (or car loan broker) is an accredited person or entity that helps people find suitable vehicle loans. The broker uses their connections to hit a variety of loan products and lenders at the same time. Trust us when we say the process is much different than going online and using a comparison tool.
For getting the best car financing fast, brokers save you time and money. They find competitive rates and are an ideal resource for customers who want pre-approvals or have bad credit.
Car Finance Brokers Help Credit Scores
The Australian Investment and Securities Commission (“ASIC”) accredits all car loan brokers with an Australian Credit Licence (“ACL”). The ACL shows that the car loan broker has the knowledge and responsibility to follow regulations outlined in the National Consumer Credit Protection Act of 2009.
So what does this mean for you? Most importantly, the Act protects the consumer. It ensures licensees never “enter a contract with a customer, suggest such a contract, or assist a customer in applying for a credit contract if that contract is unsuitable for that customer’s situation.”
This means we work to find you the best loan for your unique circumstances.
Three Pillars of Car Finance Brokering
To ensure reasonable lending solutions for their clients, brokers follow what we call the “three pillars” of financing. These are:
- Making responsible investigations into the car buyer’s financial situation.
- Determining if that situation can support the type of loan the buyer needs.
- Looking into their financial situation and verifying what the buyer says.
Speed Up and Create an Unbiased Process
It can take a minute to find financing. You can make all the necessary phone calls and go through the mill. Car dealerships can certainly offer loans, but that’s backend shenanigans you want no part of.
Instead, let a car finance broker do all that work, reaching out to any party that can help. They can access resources you may have never encountered in your search. The broker uses an intensive investigation based on your budget, estimating how much you can afford to repay and the rates and terms that suit your needs.
The Red Tape of Car Financing
There are thousands of loan products on the market. Unfortunately, sorting through them — finding the perfect provider — will take a minute or more! In most cases, time constraints and lack of knowledge lead buyers to accept an option long before they’ve found the most suitable one for them.
A broker makes a preliminary assessment of your creditworthiness to find a suitable loan for you. Any loan not considered right won’t get submitted to a lending panel. That’s to avoid a rejection that could harm your credit score and the possibility of getting a loan. This is the VIP treatment no buyer can afford to overlook.
Specialised Car Finance Brokers
Ezilend is an excellent resource for personalising loan processes. We strip the production of stress and confusion. Our team of specialised financial consultants makes borrowing for your new or used car a simple process. If you need a loan, reach out to Ezilend today.