One of the top priorities when looking for an attractive car finance deal is to ensure you save as much money as you can. Often, this comes down to finding the most attractive loan structure with the lowest possible interest rate. When you’re in the market for vehicle finance you generally have two options: a car loan obtained via a finance broker or dealer finance.
Generally a dealer will only have one lender to choose from and limited options available. While low rates may be available from a dealer, these are often accompanied by a balloon payment that’s due at the end of a three-year loan period. This balloon payment could result in you paying a lot more for your car than it’s worth. There might also be other fees for the duration of the loan. Your choice of car is usually limited to new vehicles and there won’t be a lot of negotiation room which can offset the possibility of a low interest rate.
Accessing car finance through a finance broker can be a good option as they have access to a wide range of lenders and do all the hard work comparing car loans for you. You are able to receive many different offers as the loan institutions compete for your business in a short amount of time. As car finance brokers work for you, they will aim to find you the best and most affordable loan which will save you money. Being that a broker does a preliminary assessment, they won’t put you in a situation where a lender declines a loan therefore affecting your credit rating. A dealer will put it to their one lender regardless because that is their only opportunity to sell that vehicle and it could affect your credit score.
You want to be in control whether it is negotiating with lenders or choosing repayment structures. Selecting a car finance broker will ensure you have the negotiating power you need, plus you’ll save money. If you need a car loan, Simply Finance can help you find one that suits your needs. Contact us today to learn more.