What are an auto loan broker/ car loan broker?
A car loan/ auto loan broker in Australia acts as a mediator between a person who wants to get a car loan/ auto loan and the companies which offer car loans.
What information is needed to complete an auto loan/ car loan application?
In order to get a car loan, the prospective buyer must have a car loan application. A car finance broker has to gather the necessary information from the consumer in order to complete the application for car loan. In order to do the broker has to have access to the consumer’s credit so that he may be able to verify all the information that is provided by the consumer. The consumer should check his own credit score before applying for a loan so that he can ensure that his credit record contains correct information. Copies of bank history and banking statements are usually required at a later stage of the proceedings.
While it’s quite possible to get a loan in Australia, even if you have poor ratings, its advisable that you do some research so that you can get a good bargain. First time buyers are usually unaware of the processes concerned with buying a car, and they get taken advantage of by the dealers who are quick to recognize their lack of experience. It’s a good idea to get in touch with a car finance broker if you want a good finance package on your loan.
What are auto loan brokers?
Auto loan brokers are the people to look out for if you are interested in bad credit loans because they are familiar with many car loan lenders. While people with good credit also enlist the help of car finance brokers, they are more popular among people with poor credit. This is because individuals with poor credit have lesser finance options and are more vulnerable to tricks and schemes devised by dealers.
Benefits of using an auto loan broker
Car finance brokers are helpful due to several reasons. Its important to scout around for the best deals on offer when buying a new car. Often, people don’t have the time to do this own their own. At times like these, the intermediary companies can do this for them. Being familiar with several companies and dealers, the brokers can you the very best offers. By submitting an online application asking for quotes, you can get a response in minutes by virtue of a broker. A broker having access to several companies can provide you with multiple offers suited to your need.
How to locate a good auto loan broker?
You will find several Australian Car finance brokers on the internet. Its also a good idea to ask your friends, family and acquaintances to recommend brokers that they are familiar with. While brokers won’t review your credit report for a quote request, you should mention a genuine credit description on your request form. You should submit an official loan application with the lender after carefully reviewing the different offers and choosing a lender. The most important step when setting out to buy the car of your dreams in Australia is to apply for a car loan. Since the idea is to bag the best available deals, we need to gather some information and do some car loans comparison before finally going to a car dealer.
It is essential to your credit score. Everyone has a score based on his credit report which id devised by the lender. This score lets a lender figure out whether the customer is capable of repaying the debt on his loan. Since the average score is 723, anything above 700 should give you a good chance of getting the lowest interest rates. You can obtain your credit score for free online, and it will give you an idea of your ability to borrow.
To get the best deal in Australia, you have to compare between the quotes provided by various car dealers. Since they will tend to give you similar quotes, its important that you distinguish between them on the basis of APR (Annual Percentage Rate). We would advise you to remember that while a lower APR indicates a better deal, long term deals usually have higher interest rates. Thus, they are not a practical option when it comes to cost-effectiveness. A car loans comparison is thus the first and most essential step.
With a change in the borrower profiles, there has been a change in the attitude of the lenders. As a result of the strong competition in car loan products, lenders have changed their attitude. While earlier they tended to grant loans to those with high income or to secure borrowers, they are now open to the idea of taking risks. In fact they also offer high risk borrowers the products that were earlier offered to low risk borrowers.
These changes can be observed in the introduction of:
- Low or no doc loans is where limited written proof is required regarding income details, savings history and other financial matters
- Increased exposure of lenders to unsecured loans
- Lower fixed interest rates
- Lower fees
- Extended loan terms
As a result of lowering the rates of personal and car loans, not only have these products become affordable, but there has been a stable ascension in the approvals of both. As a result of the rise in the cash interest rate by the Reserve Bank, there has been a fall in lender’s profits and a further increase in competition. With an increase in fuel prices, consumers are now turning to smaller, more cost effective vehicles, which usually come at lower prices. Due to this, the average cost of individual car loan is going down and the number of borrowers who can repay their loan is going up. This obviously leads to shorter loan terms and a lessening of interest paid.