A complex loan to raise? Want to save money when changing vehicles? The auto loan broker can ensure you make the best choice of credit type and bank when embarking on a new project.
What is an auto loan broker?
The auto loan broker, like the credit broker Good lender for example, is an intermediary belonging to the BIO category, for Intermediary in Banking Operations . His role ? Substitute the borrower to undertake loan application procedures with the banks, and compete to obtain the most advantageous credit.
Agent and broker: what difference?
The auto loan broker is sometimes confused with the auto agent , also a member of the Lite lender caste. These two professions, however, have a major difference: the broker is not attached to any particular credit organization. The agent, on the contrary, is commissioned by one or more credit institutions.
The advantages of the auto loan broker
To obtain an advantageous car loan , the broker has no shortage of advantages:
- market knowledge : in daily contact with a multitude of credit organizations, the broker knows which establishment to contact for each specific need;
- an advantageous rate : the broker has a network of contacts which enables him to request the most interesting loans for the borrower;
- considerable time savings : the expertise of the auto loan broker, coupled with his role as advisor, gets rid of tedious steps while avoiding the risks of making the wrong choice of credit.
The constraints of the auto loan broker
If you decide to hire a broker, be sure to:
- the broker’s reputation : very useful for finding the best rate, the work of the broker can be counterproductive if it is accompanied by negligence, or partiality towards an establishment. Take the time to find out about the broker’s history before entrusting him with your file;
- Remuneration : if the broker is not remunerated if the file fails, remuneration of around 10% of the amount of the credit is to be expected. Depending on the lending institution, this amount may be included in the total cost of the car loan. Credit broker Good lender offers auto loan brokerage services to borrowers free of charge : it is indeed the lending organizations that remunerate him as a business provider.
To get your own idea of the car loan rates in effect, take advantage of our car loan comparator for free.