ANZ’s car loans business was known as Esanda up until early 2019 when it was fully absorbed into the ANZ brand.
The business is one of the more experienced lenders in the automotive industry and has been involved in the car loan market for quite some time.
With its experience, it understands the car loan market better than most lenders, which shows in the criteria it has in place for vehicles, loan terms and structures as well as the options available for how you purchase your vehicle.
The wide range of options they offer on how you buy your vehicle make them one of the most flexible lenders in the market for car loans. Other lenders may restrict on how you buy your vehicle, or if you purchased through a private seller, or impose some other pretty strict conditions that just may not be possible in some cases.
ANZ also deals with the client 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 ANZ direct, you won’t necessarily get the best possible deal available to you.
The reason being is that for ANZ to stay competitive, it has to offer its introducers interest rates in line with its competitors, as its introducers are giving their lenders volumes of business every month and if ANZ 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 ANZ a car loan every 2 to 5 years and if they lost that business, it isn’t going to hurt it too much, but on the other hand, if its introducers stopped giving it business, as it was not in line with the introducer’s other lenders, it could be costing itself thousands of deals every month, which would be damaging to its business. It is like Costco if you will, buy in bulk and you get it cheaper and an introducer gets wholesale due to its bulk buying.
ANZ has some of the lowest interest rates available in the market, but it also has some of the highest. The way it assesses what interest rate you could achieve, allows it to offer lower rates than a lot of its 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. ANZ is hungry for the well-seasoned experienced borrower, as in its experience, it understands it will get lower delinquency rates with these types of clients, so its 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 ANZ is with its criteria, where it will lend on certain clients or vehicles where other lenders won’t, or it 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!
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