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Car Finance: Brokers vs. Lenders

March 30, 2016

When hunting for the best car deals, company jargon can be the thing that gets in your way. Between lenders and brokers, financing and leasing, it’s no surprise that so many drivers get frustrated in their search for an affordable way to buy their next car.

Today, we’re taking a look at the crucial differences between car finance brokers and lenders – arming you with all the information you’ll need to find a car loan that suits you, whatever your circumstances.

Brokers vs lenders

Car finance lenders

When it comes to competitive car finance, direct lenders are an understandably popular route. With auto makers, dealerships and independent financial providers offering a select range of agreements to their customers, there’s no doubt lenders present an accessible solution to buying your new car without paying up-front.

Why choose a lender?

  • Direct contact: car loan lenders offer the most direct route to a finance deal, giving you peace of mind that you’re communicating one-on-one with your credit provider
  • Convenience: with so many dealerships advertising their own agreements, car finance lenders can help you drive off the forecourt on the same day without having to match the up-front price tag
  • Exclusive deals: applying for car finance with your brand of choice may grant you access to a selection of exclusive deals you won’t find anywhere else – meaning it can pay to cut out the middle man

Brokers vs Lenders 2

Car finance brokers

Drivers in search of variety will find that brokers have the unrestricted access they’re looking for. Working directly with a panel of the UK’s foremost lenders, car loan brokers give applicants a chance to explore the big, wide world of car finance with one click – meaning applicants with some criteria of their own can find their perfect match.

Why choose a broker?

  • Choice: every lender has their own individual set of criteria, and drivers are just as unique. From the length of a loan to the monthly repayments to the APR, there are a number of elements to every car finance agreement – and no two plans are equal. By applying with a car loan broker, you won’t need to settle for a poor fit
  • Affordability: in the search for a competitive car loan, interest rates are often a critical factor. With a broker, you can find a payment plan that suits your budget – browsing an elite range of lenders to find an agreement you can comfortably afford
  • Better chances of acceptance: A history of financial troubles is, more often than not, a major obstacle when it comes to securing credit. However, when it comes to car finance brokers, bad credit scores don’t have to be a deal-breaker – with the option to explore a wide selection of poor credit car finance alternatives

Brokers vs Lenders 3

Whether you’re looking for an exclusive deal on your new car or want to find the best interest rates available to you, the key is to explore your options before committing to an application.

As a car finance broker, The Car Loan Warehouse  gives you access to the UK’s best deals – with competitive interest rates and flexible terms regardless of your credit history. For a quick quote, try our car finance calculator today – or apply online if you’re ready to get started.

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About The Author

Jon Le Roux is co-founder and company director of The Car Loan Warehouse. Being a mad engineering and motorsport enthusiast, I spend more hours than is healthy, watching, reading or talking about cars, boats, motorbikes…..basically anything with an engine.