While it's possible to do your research and discover the best finance deals for yourself, using a lender allows you to keep everything in one place with all the help and guidance you need.
Do you already have a car with finance? Car Credible could help you switch to a new car or save money on your monthly repayments. Sign up today to discover your options.
For those a little intimidated by face-to-face encounters - particularly if you're not 100% sure what you're after - more often than not you will be able to work with a finance broker from the comfort of your own home, either online or over the phone.
Car finance can be overcomplicated, but it doesn't have to be. Car Credible is here to help you get the most out of car finance and find what you need.
What is the difference between a car finance broker and a lender?
A car finance lender is a finance company that loans you the money you need to buy a car. You'll have an agreement with them to make your monthly repayments and pay back the money you borrowed.
A broker, on the other hand, acts as the middleman between you and the lender. Their task is to work with you to find the best possible deal, and they generally work with a panel of lenders, so you're not restricted to what or whom you borrow from.
While a broker can answer your questions and put you in front of the offers that suit you, they do not loan you any money.
Why should you use a car finance broker?
Using a car finance broker has a wealth of benefits. Not only will you have a dedicated account manager available to help talk you through your options, but you will also have access to many deals that you may not be able to get by yourself.
Brokers work with multiple lenders, meaning you are not resigned to the first deal they put in front of you. You can weigh your options and make the best decision for you.
Car finance brokers are almost always a free service, too. The way they make their money is when you select your deal, the lender you opt for will pay the broker a slice of commission for referring you to them. So it's a win-win for all three parties involved.
Lenders are out to get the best deals for themselves, so by having a broker to support you, you can be sure they will help you with all the jargon and possible concerns you may have before selecting your loan.
Car finance broker benefits
There are so many benefits that we've already discussed why having a car finance broker is integral to you getting the best deal when taking out a new or existing car finance loan.
But below, we have provided our top five best reasons why you should use a car finance broker before deciding on whom you borrow from. It could save you more than just money!
Saves you time
Buying a car can be a difficult and time-consuming task. Trying to sort this alongside all your other day-to-day tasks is not easy, and it could lead you to rush to get it done if you don't have the time to dedicate to it.
That's why having a car finance broker can reduce stress and do all the dirty work behind the scenes, so you just let them know what you want and pick the best deal for you when they have some for you.
By signing up to Car Credible using our Deal Checker or even applying for finance before checking your deal, we will make everything straightforward for you. Our in-house form takes five minutes, and once done, our finance broker partner will have all the information they need to help find you your deal.
If you opt against using a broker, you will fill in the same information countless times to each lender before being presented with the deals available, which will take up even more of your valuable time.
Help you even with bad credit
If you have bad credit, no credit at all, or require a loan that requires a 0% deposit, it can be tough to know where to turn or whom to trust; you don't want to be applying with lenders that point-blank don't approve loans for people with poor credit.
Some brokers may be able to guide you in the direction of lenders that do offer loans to those with no or bad credit, which will not only help you find a deal suitable for you but will also save you more time.
Not only that, if you have bad credit and constantly apply for a loan and get declined by numerous lenders, those applications will appear on your credit history and make it even more difficult for you to borrow.
A broker can put you in front of the right people to ensure you are not affecting your credit history before you've even begun; it's a way to get the deal you want.
Can perform a soft search for you
If you decide to apply directly with lenders without using a broker, the chances are that each application will appear on your credit history, thus making you less likely to be approved for a loan.
Using a broker eliminates that risk, as they will only perform soft searches on your profile while finding deals from numerous lenders. It increases your chance of being approved for the loan before proceeding.
A broker will only perform a hard credit search when you choose the deal and lender you want to proceed with. At this point, you should be confident of being approved, and the hard search will not make too much difference to your overall history.
Receive ongoing support
When you use a broker, you get matched with a dedicated account manager that is your point of call regarding everything car finance related. Any questions, concerns, or requests can get directed to your account manager, who will do all they can to help meet your demands.
Going alone means you will have no support or assistance, and you could get into a poor financial deal. It's a regular occurrence that we see with those that wish to refinance.
As we've already gathered, buying a car is not as easy as it should be, and things can get stressful, especially as you're dealing with a large purchase and a sum of money. An account manager can ease your worries and make the process as streamlined as possible.
Help you to find the right deal
There are a variety of car finance deals available, some of which will suit your requirements more than others. From PCP to HP and personal loan, each one differs in benefits, and you must know what's right for you.
The same goes for lenders. Some are better than others, some offer better APR rates, and some help those with bad credit. Unless you spend a significant amount of your own time researching lenders, you aren't going to know what is best for you.
Using a broker means they will help you find the deal that suits, and put you in front of lenders that fit your profile and personal circumstances more than others out there.
Access to several lenders in one place rather than individual lenders if you applied by yourself is invaluable in helping you make the decision that benefits you and your finances.
A broker will also be able to check your approval rate for each lender before putting you in front of them. They can also help with paperwork and any jargon you may not understand, explain all options and benefits of each finance prospect, and help you look for your dream car.