Broker VS Dealership Which One Slays?
Okay, you know the difference between the each. Moreover, if you do not, and you’re hesitating to ask, this post is entirely made for you.
A broker – In a word, a broker is an independent agent who works as a third party. He brings sellers and buyers together.
Dealership Finance – Also known as Indirect Loans – Dealership Financing Loans – have a different story. These are originated by a retailer to its customers. These loans are then sold to a bank, or maybe a third party financial organisation.
Most of the times, the bank or the financial institution purchases these loans at a discount. This leads them to collecting principle and interest payments from the borrower.
A broker or a dealership finance?
Chances are you’ve heard somewhere about how you should choose a car dealership for the best. But, here-here, it’s not the best deal of the lot.
Hearing it on the grapevine and hearing it from the experts, each are totally different.
The Larger the Panel of Lender, the Better for You
Generally, car dealerships make are not accredited with more than two finance companies. This does not only decreases your choice, this also increases the chances of getting rejected application.
On the other hand, a finance broker is armed with a panel of lenders. Also, you get a wide range of finance products.
Know who is Not Working in Your Best Interest
There’s a conflict of interests between you and the manager who’s managing the car dealership.
Finance brokers; on the other hand, put more efforts to secure the best deal for you.
More Power to You with a Financial Broker
Negotiation about the purchase price of the car gets easier as the broker already has approved the loan. Being finance-ready is a sign that you are doing ‘no-kidding’ with the purchase.
Those promotions maybe as shallow as a frying pan. Stop joining the bandwagon. Clearly, car dealership is not how you think of it to be.
Are you looking for a bad credit car finance? Do not worry! These days you can get car finance with bad credit too.