One of the biggest mistakes that people make when purchasing their next car is only using a car dealership. Whilst it can be really easy to see a car you like at a dealership and then try to get finance through the dealer, it isn’t your only option. What if you got the best finance deal first and then got the car you wanted? That’s exactly what a car finance broker can do for you! Using an online car finance broker can be fast, reliable and save you money!
Let’s find out how you can save money by using a broker.
What is a car finance broker?
A car finance broker is the middleman between the lender and the customer. A car finance broker does not provide loans but matches customers up with the most suitable deal from a range of lenders. Your finance will be provided by the lender and that’s who you will pay back each month. Car finance brokers only earn their money by charging the lender and not the customer.
1. Compare a range of lenders.
A car finance broker is essentially the middleman between you and a range of finance lenders. When you apply with an online car finance broker, they out your application in front of a wide range of lenders and offer you the most suitable option. Brokers have access to more finance packages than mainstream dealerships and can help you to save money on your monthly payments. Some brokers can also compare a range of both Hire Purchase and Personal Contract Purchase deals, depending which finance format suits you better.
2. Get the car you want.
The beauty of using a car finance broker is that you get the best deal for you, but you can also get the car you want within your budget! A car finance broker helps you get the car you want from a reputable dealership and get a reliable car. You can take your car finance deal to any dealership that is verified by the Financial Conduct Authority. This enables you to buy with confidence and gives you added protection to all parties involved.
3. Bad credit car finance considered.
One great advantage of using a car finance broker is their ability to match you up with the most suitable finance package for your circumstances. If you are applying for car finance with bad credit, you may not know where to turn and who has the best deals. It’s a common misconception that having bad credit means that you will be offered a high interest rate on a car you don’t want. But this doesn’t have to be the case. Car finance brokers can help you get an affordable finance deal, even with a low credit score. You can also increase your credit score before applying to help your chances of getting approved.
4. Protect your credit score.
When you shop around for finance using different dealers or lenders, you will usually have to pass a credit check to get approved. This is because lenders want to know that you will pay back your loan on time and in full. When you make multiple applications for finance in a short space of time, you can negatively harm your credit score. A hard search credit check is recorded on your credit file and allows lenders to take a full look at your credit score. A car finance broker usually uses a soft search credit check which helps to protect your current credit score. A soft search doesn’t affect your credit score and only allows lenders to take a partial look at your credit score. Brokers will then only provide a hard search on your credit file when you are proceeding with a lender for finance.