Have you decided to replace your old car, which has become too expensive or are you launching for the first time in the purchase of a vehicle? Unless you have the necessary budget or want to take advantage of another type of financing, like the majority of French people, you use auto credit!
For lack of time or because your record is difficult, you are considering turning to a car loan broker. What is his role ? How are you paying for it? And how to choose? As many questions as you ask yourself no doubt!
What is the role of the auto loan broker?
Overall, and as the name suggests, the broker serves as an intermediary between different parties. It may be an insurance broker, a home loan or a car loan.
In all cases, he acts on behalf of the client who must sign a financial contract with different stakeholders: insurance, bank, lender and others.
His action as part of the car loan
As part of the car loan, he will find for you the best rates on the market. He is also responsible for properly studying the market he knows perfectly, to find a proposal that presents the best conditions.
He is also there by your side to present to the bank or credit agency a file strong enough to pass.
Perfect knowledge of the client file
To do your job seriously, the broker must know everything about you (or almost) in order to carry out his mission. You will first have to give him information about the amount you need to borrow, the project you are funding. He must also know in detail your financial, family and professional situation.
You give him all the documents concerning your income, your expenses and fixed charges, the amount of current loans if you have them, your account statements, etc. It is thus a complete file that allows it to negotiate with banks and financial institutions.
Examination of your file by the loan organizations
Your broker is committed to presenting your file in the best light so that it is accepted. It is also his role to highlight the positives and minimize your weaknesses in relation to the knowledge he can have of the terms of acceptance of each financial institution with which he is used to working.
You stay in control of the situation
Under no circumstances are you obliged to subscribe to the broker’s proposed contract. It is you who decide last. In order to make this decision, you need to consider all the important points and your broker is there to explain in detail the loan agreement.
You have no commitment to the broker, which means that the final decision is ultimately yours.
Your broker makes you benefit from a favorable rate
Thanks to the many contacts that your broker can have, it is easy to find an interesting credit at the financial level. It is based on the best credit institutions and rates, durations and fees for each of them.
It is based of course on what you expect from your credit and the possible weaknesses that may present your file to make this study. This step saves you a lot of time and energy. It must also be known that he is able to get the most difficult cases through the appropriate financial institution.
Finding the cheapest rate is not the only concern of the broker. So that you are completely satisfied with his performance, he must find the product that perfectly matches your professional, financial and family situation. It also multiplies the chances for you to benefit from a loan agreement.
How to choose your auto loan broker?
Ask about his reputation
The broker’s job is difficult to assess before using his services. But you can however inquire about his reputation. You will find customer testimonials on the internet and word of mouth is also a method that works perfectly well. Before giving him your file, take the time to chat with him. Depending on his ability to build a relationship of trust, you will decide whether to give him your file.
What are the fees charged by the broker?
You must know that if you do not get your loan through the broker, you will not have to pay for it. Indeed, this professional has an obligation of success to be able to take you a certain amount of money.
If he manages to find you a financial institution, then his remuneration is generally equivalent to 10% of the loan subscribed. Fees may be slightly less, but rarely higher. It is important to know that you have the opportunity to integrate this compensation into the total amount of credit you need.
You also have free auto brokers who are actually paid by the credit institutions as business contributors.
In summary: Saving time, saving money and interesting rates are the main assets, which can make you benefit a broker.