Car Finance Explained

What’s the difference between a car finance broker and a car finance lender?

A car finance broker is best described as a middleman between the customer and the lender. A broker usually has a panel of lenders they work with, as this allows them to source the best finance options for their customers from a variety of different backgrounds.

In short, brokers don’t provide the loan themselves but can help you arrange the finance agreement. Car finance lenders will loan you the money to buy the vehicle. It is the lender that you will have the agreement with and with whom you make the repayments too.

Justin Cottrell
Founder

My local dealership declined my for finance, I am worried about making too many applications what would you suggest?

Great question! So long as you limit the number of hard credit searches, instead, I would suggest you only apply for finance with companies that conduct soft searches. This way, only when you decide to proceed with an application will a hard search be carried out.

Justin Cottrell
Founder

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