Using car finance as a way to purchase a car, whether new or used, has steadily gained popularity over the years, allowing all types of people to get behind the wheel, by covering the cost of the vehicle, usually through fixed monthly instalments.
Of course, those looking for car loans can approach lenders directly, but for people who have never entered into a loan contract before, going through a broker is often the best course of action, since a broker acts as an intermediary between an applicant and lenders, helping to compare all the best options available.
But, with a simple internet search throwing up hundreds of similar results, it can be difficult to tell whether a car loan broker is to be trusted. Here, we discuss several key points to consider when determining whether a car loan broker is of good quality.
Knowledge and expertise
High-quality brokers are experienced and know how to approach financiers, as well as having strong relationships with many lenders. This means they can point applicants in the right direction in terms of the lenders that are likely to accept them based on their individual circumstances.
As such, one of the fundamental characteristics of high-quality car loan brokers is that they have the right knowledge and expertise. The average member of the public will not be well-versed in the ins and outs of car finance, and it is, therefore, a brokers job to help explain to them in easy-to-understand terms what types of loan are available, as well as recommending the best finance options based on their situation.
Moreover, a good broker will be willing and able to answer all questions an applicant puts forward, confirming their proficiency in the subject matter.
In the modern world, the vast majority of people will not make a purchase or hire a service provider without first finding out whether the product is good or the business is to be trusted. A company’s online reputation can, therefore, provide people with a lot of information as to a their honesty, reliability and quality, based on previous customer experiences, which is of utmost importance when deciding whether to commit to a broker and any lenders they are affiliated with.
Renowned online review platforms, such as Trust Pilot, Google My Business, and specialist finance forums, like Money Saving Expert, are all notable places to look when researching brokers. Likewise, the company’s social media pages may also provide useful points, as they may give people an indication of how reasonably the broker deals with customer grievances.
Many loan brokers specialise in certain areas, such as helping people with poor or no credit receive finance, which is why it is sensible for these types of applicants to choose a broker that has experience in this area. These brokers will likely have the right contacts and tend to be more skilled at negotiating with the types of lenders that are best suited to specialist applicants.
Avoiding disreputable brokers
Now we have discussed what to look for in good brokers, it is important to understand the warning signs of the disreputable types. Factors to look out for include; those who ask for upfront fees without providing any service, and those that rush applicants through the paperwork without explaining what is being offered.
Additionally, if the broker is particularly difficult to reach, via phone or email, then they may have something to hide. Respectable brokers will want applicants to feel as assured as possible, which is why they normally have a specific customer helpline dedicated to handling queries.