A common car finance myth is that you can only obtain finance through a car dealership. However, this is not true! Have you considered using a car finance broker to help sort your finance and get you the best deal possible? Let’s see how you can save money by applying with a car finance broker and sorting your finance first!
What is a car finance broker?
In simple, a broker is ‘a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed.’ However, Car finance brokers such as Refused Car Finance don’t charge customers any fees for using their services. A broker is essentially the middleman between you and the car finance lender. You only need to apply online with the car finance broker and then they can help match you up with the most suitable lender from a wide range of trusted lenders. Your finance agreement is then sorted with the lender and you will pay the loan back to them each month.
Why should you use a car finance broker?
There are many benefits to using a car finance broker that many people may not realise. The approval process is fast and efficient, you can be assured you get the best deal possible and get the car you want from a reliable dealer! What’s not to love?
Compare a huge range of lenders
It’s a great idea to shop around for car finance to assure that you get the best deal possible. However, multiple searches for car finance eon your credit file can harm your credit score. By using a car finance broker, you only need to apply the once! Brokers then have access to a wide range of finance lenders and only send your application to the ones that could accept you. Brokers do all the leg work for you and match you up with the most suitable lender for you. They also check your affordability to make sure you don’t borrow more than you can afford to pay back.
Search for bad credit car finance
Getting car finance with bad credit can be a little harder, especially if you’ve been refused car finance in the past. If you’ve already been declined, then you may think that getting car finance is off the cards for you. No one wants to waste time applying for lenders who may decline them and that’s where a car finance broker can help! Car finance brokers work with a large lending panel, including those that help people with bad credit get car finance!
No impact to your credit file
Shopping around for car finance and applying to companies that use a hard search credit check can negatively impact your credit score. A hard search credit check is recorded on your credit file and allows potential lenders see your full credit file. Other lenders can also see your history of finance application and if you were approved or declined. Car finance brokers such as Refused Car Finance only use a soft search on their application form. This allows you to apply with no affect to your credit score. Your chosen lender may provide a hard search in your credit file when they pay out your finance deal, but this should not harm your score either.
Fast and efficient pay out
Many people are still under the misunderstanding that car finance is a slow process and getting a car finance deal at a dealership is the easiest and most efficient way. However, car finance brokers do all the leg work for you and some customers have even sorted their finance and car the same day!
Huge choice of cars
At a dealership, you are restricted to their cars on their forecourt that they want to sell. You could be pressured into a car that you don’t want but with a good finance deal. This is not right. When you sort your finance deal first, you can then get the used car you want! You can take your finance deal to any UK car dealership that is verified by the Financial Conduct Authority. This gives you the confidence that the car you are buying is reliable and affects your consumer rights. You cannot use your finance deal on a private sell as you aren’t covered by your consumer rights and if anything is wrong with the car then the deal would need to unwind. Using FCA approved dealerships benefits yourself and the lender.