Bank vs Broker

A large percentage of people head straight to their bank when applying for a car loan, but is this strategy the best option for you?

What are the differences between a bank and a broker?

When you deal with your bank, you only have one lender available to you. Your bank won’t tell you if theirs is the cheapest or most expensive rate in the market place. A broker has access to multiple lenders, giving you a range of options.

All lenders have different rates and lending criteria’s.

With car loans the interest rate is determined by the age of the car, your overall profile, if you’ve had previous credit or not – or if there are defaults on your credit file. Lots of things to consider!

A broker knows the lending criteria of various financiers. This enables them to submit your application to the right lender the first time to get the best rate that fits your profile.

Next time you’re looking at finance, keep your bank honest and get two quotes. It could save you thousands.