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Why use a car broker?

Georgia Brown avatar
Georgia Brown
- 3 min read
Why use a car broker?

Much like a mortgage broker, a car loan broker is an industry expert who can help you find a vehicle finance option that suits your financial needs.

But you may be wondering, what can a car finance broker offer you that you can’t achieve on your own?

Australia’s car loan marketplace is quite vast, which can make it easier for you to find a product that fits your unique needs. But having so many options to choose from can also be overwhelming for some.

For this reason, plenty of Australians choose to engage a car finance broker to match them with a car loan. Here are some of the ways a broker could help you:

Sharing expert knowledge

Searching for car finance requires you to have at least a basic understanding of the key features of a car loan, such as:

  • Interest rates
  • Comparison rates
  • Loan terms
  • Fees
  • Extra features
  • Repayment types 

Some car buyers may be familiar with the features of a car loan, while others may not. But either way, it’s also important to understand how they relate to your needs. For example, is a fixed or variable interest rate best for your financial situation? Will a shorter or longer loan term work better for you? And could you benefit from choosing a product with extra features?

If you can’t spare the time it takes to research the answers to these questions, or you simply want a second opinion, this is where a broker could help. Brokers have expert knowledge that allows them to assess your personal financial situation and match you with suitable products based on your requirements. 

Negotiating with lenders

Experienced car loan brokers will typically have spent years building relationships with a wide range of lenders. As a result, they will often have access to lenders’ wholesale interest rates that aren’t typically offered directly to borrowers and are usually more competitive than standard retail rates.

Additionally, car loan brokers may be able to negotiate with lenders on your behalf to ensure you’re getting the best deal that may be available to you – particularly if you have special requirements. For example, you may be interested in finding a loan provider that will allow you to include on-road costs in your total borrow amount.

Assisting with low-doc applications

If you are self-employed, a temporary resident or another kind of non-standard borrower, you may not have all the documentation typically required for a car loan application. In this instance, a car loan broker could help you find out which products you may be eligible for, and what kind of alternative documentation you could provide. They could also communicate with potential lenders on your behalf and provide helpful guidance throughout the application process.

To find out more about car finance brokers, consider visiting RateCity’s car loan broker hub. And if you’re keen to get the ball rolling on your car loan search today, check out RateCity’s car loan comparison tables and car loan leaderboards.

Compare car loans in Australia

Product database updated 14 Jun, 2024

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.