If you’re thinking about taking out vehicle finance, you may have considered using a broker. Many people use a broker service when taking out a mortgage, as they’re likely to save money in the long run, so surely the principle remains the same with car finance? As a broker, we may be slightly biased, but we’re confident that using services like ours will not only mean you find a suitable lender offering great rates, you’ll also save yourself lots of time!
There are lots of different benefits to using a vehicle finance broker, and we’ve explored some of the main ones below.
Why Use a Broker?
As mentioned above, it’s common to use a broker when getting a mortgage. A mortgage is probably the largest loan you’ll ever take out, so saving even a fraction of a percent in interest could save you a lot of money in the long run. So if you’re able to save some money, why wouldn’t you?
A broker is a company that can compare some of the best deals on the market, and present you with the option that best suits your needs and requirements. And if you have a bad credit history, a broker can help you find a specialist lender.
With a broker, you should be presented with the best interest rates available to you. The actual rate you’re offered will depend on things like your credit history and your monthly budget, but a broker will take all of this into consideration when comparing lenders for you. You should therefore save money in terms of interest rates with a broker service.
It is worth noting though that some brokers may charge a fee for their services, which could impact the amount of money you save. However, with Vehicle Finance Today, you can rest assured that there are absolutely no hidden fees – you can use our services free of charge. This is because we work on a commission basis with our panel of lenders.
Get Insider Knowledge
Another benefit of using a broker is the fact that you’ll get insider expertise. If you’ve not taken out vehicle finance before, you may not know the difference between Hire Purchase (HP) and Personal Contract Purchase (PCP) agreements, for example. Like the fact that with HP, you’d be covering the cost of the vehicle itself, while with PCP, you’re paying towards the depreciation of the vehicle.
A broker will also have already built up relationships with a wide range of lenders. So they’ll know what sort of criteria you’d need to meet, and what your loan agreement would look like. Essentially, a broker can give you better insight into which lenders are likely to accept your application.
In addition to this, a broker’s relationships with loan providers could mean they’re able to access preferential terms that you would not have been able to get on your own. Such discounts may only be available to borrowers who find the lender through a broker service.
One of the limitations of approaching a dealer for vehicle finance, when you’re choosing your new set of wheels, is that your choices will be relatively limited. The majority of dealerships will only work with a handful of lenders, so will only present you with these options. And if you have a poor credit rating, there are some dealers who won’t be able to help, as they might not work with specialist bad credit loan providers.
Working with a broker means that you’ll essentially be applying with a large number of lenders, without the hassle of filling in endless application forms. And if you apply through Vehicle Finance Today, you can rest assured that this won’t have any impact on your credit score, as we only undertake soft credit checks.
Find Specialist Lenders
If you have a low credit score, you may need to find a specialist lender who can help. Such lenders understand that having bad credit doesn’t necessarily mean that you’re bad with money – often a poor credit rating will be due to factors beyond your control. For example, if you have not taken out much, or any, credit in the past, this can damage your credit rating, as lenders don’t know how you manage your finances.
While no broker or lender can offer guaranteed approval loans, Vehicle Finance Today works with a number of specialist bad credit lenders. These vehicle finance providers should consider your application even if you have a low credit score. They’ll take more than just your credit history into consideration when making a loan decision, looking at things like your employment history and monthly expenditure too.
Until you start researching vehicle finance and comparing lenders, you probably don’t realise how much of a time consuming process it can be! Not only do you need to find the loan providers, you also need to see whether you meet the requirements of each one. But with a broker service, you can let them do all the hard work for you! A broker will compare lenders, and put you in touch with the most suitable option.
It’s also good to bear in mind that the majority of brokers are based completely online. This means that you don’t need to leave the comfort of your own home to apply, and can fill in the application at a time that suits you.
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