Esanda, which is owned and operated by ANZ Bank Ltd is one of the more experienced lenders in the automotive industry and have been involved in the market for car loans for quite some time.
With their experience, they understand the car loan market better than most lenders, which shows in the criteria they have in place for vehicles, loan terms and structures and the options available for how you purchase your vehicle as they have had plenty of years of experience to analyse this part of their business.
The last point in regards to the options on how you buy your vehicle would make them one of the most flexible lenders in the market for car loans, where others fall short. Other lenders may restrict on how you buy your vehicle, or if you purchased through a private seller, would impose some pretty strict conditions that just may not be possible in some cases.
Esanda also deal with the client direct and through multiple types of introducers, which range from finance brokers, commercial brokers, mortgage brokers and dealerships. However, in the majority of cases if you were to deal with Esanda direct, you won’t necessarily get the best possible deal available to you, just as you feel you are “cutting out the middle man”.
The reason being is that Esanda to stay competitive; they have to offer their introducer’s interest rates in line with their competitors, as their introducers are giving their lenders volumes of business every month and if Esanda were not competitive here, they would lose that business to the introducer’s other lenders on their panel.
To put it simply, if you go direct as a general consumer, you may give Esanda a car loan every 2 to 5 years and if they lost that business, it isn’t going to hurt them too much, but on the other hand, if their introducers stopped giving them business, as they were not in line with the introducer’s other lenders, they could be costing themselves thousands of deals every month, which would be damaging to their business. It is like Costco if you will, buy in bulk and you get it cheaper and an introducer gets wholesale due to their bulk buying.
Esanda have some of the lowest interest rates available in the market, but they also have some of the highest. The way they assess what interest rate you could achieve, allows them to offer lower rates than a lot of their competition.
Basically, a lower profiling client will be paying higher in their interest rate, so that a stronger profiling client can get cheaper rates than the competition has available. Esanda is hungry for the well-seasoned experienced borrower, as in their experience, they understand they will get lower delinquency rates with these types of clients, so their pricing is in place to attract the stronger applicants with lower risk.
A few people would question as to why a lower profiling client would accept a higher interest rate. This goes back to how flexible Esanda are with their criteria, where they will lend on certain clients or vehicles where other lenders won’t, or they would place fewer restrictions, which doesn’t give the lower profiling client many options for approval. Sometimes it also assists that lower profiling client, to increase their credit worthiness, which would give them plenty more options and room to negotiate on their next finance application. You have to start from somewhere and it isn’t usually at the top!