How does using a car loan broker work?
With the help of an experienced, qualified finance broker, you don’t need to stress so much about the paperwork and application for your car loan.
As your finance broker could advise what is required and guide you through the processes and maze of paperwork.
After your initial enquiry, a conversation over the telephone with your finance broker will give some indication as to how you could be assisted with your vehicle purchase.
Your finance broker would ask you some brief qualifying questions about your own financial circumstances, like employment and age, the vehicle and loan term you’re looking for and so on.
Depending on your answers to these questions the broker should be able to advise whether or not you’ve got a shot at the loan you’re after.
When your finance broker either takes your application over the phone, or receives this from you, via online or manually, your finance broker will “preliminary assess” your application to establish that they can recommend a loan product that is not unsuitable to your objectives and requirements.
They will also make sure that they will not put you into any loan product that could put you in any financial hardship, now or in the future.
Your broker may request some documentation to be able to verify the information provided and may include documents such as pay slips, identification or bank statements, etc.
This important step protects you against false claims and identity theft. It’s important to provide these documents as quickly as possible so as to avoid slowing down your application.
Review suitable lenders
Your broker will then go through their panel of lender’s requirements and guidelines to shortlist which car loan lenders they have available which would approve your loan based on your application, then recommend from that shortlist the most suited lender matched to your objectives and requirements.
Your broker will then offer you a recommendation, which you can review and if you are satisfied you can accept the recommendation, then your broker can proceed to obtain finance approval from the lender.
Final steps before approval
Once you have finance approval in place, your broker would request some information from the seller. This will enable your broker to draw loan contracts and send them out to you for review and to sign.
You may require some additional documentation for loan settlement, which may include proof of comprehensive insurance and certified ID if your broker did not meet you face-to-face.
There also may be additional documentation required as an approval condition, but this will be explained upfront by your broker if required.
Settle your car loan
When you have returned correctly executed loan contracts and all supporting documentation as per approval conditions, your broker will present the executed contracts for settlement to the lender.
Once the lender has settled the contracts, they will forward the agreed funds to the seller’s bank account directly and you will then be able to pick up your new car once the seller has available cleared funds.
In regards to a timeframe from start to finish, it can happen as fast as within 24 hours on extreme cases, but without rushing can easily be done within 3 days from loan approval to the time the seller gets paid, dependent on the punctuality of all parties involved.