Why It Makes Sense to Speak to a Finance Broker Before Buying a Vehicle

Getting the right car loan tailored for your situation can save you thousands of dollars, and unnecessary risk — whether for personal use or business operations.

While many buyers default to accepting finance directly through a car dealership, working with a finance broker can offer significant advantages that are often overlooked. In fact, consulting a broker before signing anything at the dealership can save you money, time, and potential complications in the long run. 

In the process of purchasing a vehicle, a broker is working to find the best finance deal for you. The finance, or lack of finance options offered through the car dealership is generally geared to making the vehicle sale.

Here are key reasons to speak to a finance broker before buying a vehicle—and why it’s the smarter move compared to going through the dealership. 

1. Access to a Wider Range of Lenders and Products 

Car dealerships typically offer finance through one or two lenders, which limits your options. In contrast, a finance broker has access to a wide panel of banks, credit unions, and specialist lenders. This means a broker can shop around on your behalf and compare rates, terms, and structures to find the loan that suits your specific needs. 

Example: While a dealership may only offer you a 7.99% interest rate through their preferred lender, a broker might find you a 6.25% option through a non-bank lender, potentially saving you thousands over the life of the loan. 

2. Tailored Solutions for Business Buyers 

If you're buying the vehicle for business purposes—such as a work ute, van, or fleet car—a broker can structure finance in a way that suits your cash flow, asset write-offs, and tax position. They can help you explore commercial finance options like: 

• Chattel mortgages 

• Novated leases 

• Operating leases or hire purchase 

• Low-doc or no-doc business vehicle finance 

These tailored finance products are usually not offered directly through a dealership. 

3. Negotiation Power and Transparency 

A broker works for you—not the seller. Dealerships may prioritise upselling you finance that offers them a higher commission, sometimes including hidden fees or unfavourable terms. 

A broker, on the other hand: 

• Clearly outlines all fees and charges 

• Helps you understand the full cost of finance (including balloon payments, establishment fees, etc.) 

• May also negotiate with the dealer on your behalf to secure a better vehicle price 

Tip: Get your finance pre-approved through a broker before going to the dealership. It strengthens your negotiation power and helps you avoid impulse decisions driven by "deal today only" sales tactics. 

4. Credit Score Protection 

Applying for finance through a dealership often involves an immediate credit enquiry—which can negatively impact your credit score if you shop around multiple times. 

Brokers typically assess your credit in a soft-inquiry way first and only proceed to a full application once the right product is chosen. This keeps your credit file cleaner and increases your chances of approval at better rates. 

5. Faster Approvals and Expert Guidance 

Many brokers have direct relationships with credit assessors at various lenders, which can help fast-track approvals—particularly if you're self-employed, have unique income situations, or are a new business owner. 

A good broker will also: 

• Help prepare your documentation 

• Explain lending criteria 

• Flag any risks in advance 

• Guide you from application through settlement 

This level of support is rarely provided in the rushed environment of a dealership finance office. 

6. Independent Advice, Ongoing Support 

When you deal with a broker, you're building a relationship with a finance professional who can assist you not just now, but also as your needs evolve. Whether you're upgrading your car in a few years, expanding your business fleet, or refinancing for better terms—your broker is there to help you reassess and restructure your finance accordingly. 

7. It’s Not Just About Interest Rate 

In some cases, the interest rate may be higher through a broker, but you still save. That’s because an expert broker will take into account: all the fees; the overall loan cost for the life of the loan; the break costs should you have to pay the loan out in full; and the impact of a car accident. They will also tailor a loan to your specific requirements and objectives ensuring that the loan actually is the best for you. 

8. An Added Layer of Protection 

All mortgage brokers must adhere to the Best Interest Duty. This is a Federal government compliance framework that forces mortgage brokers to operate in the best interests of their clients. Getting a vehicle loan through a mortgage broker means that your interests are the utmost priority over every other aspect of the quoting and application process; including over the fees and commissions that a mortgage broker might receive when arranging the loan. In fact, in some cases it does mean that your broker may have to forego charges that they would normally charge; potentially resulting in a cheaper loan for you. Brokers working for you even though they may lose out on profit – that's strong evidence that it makes sense to speak to a finance broker before buying a vehicle. And compare this to why the car salesperson only offers you the limited finance options they have access to – usually a quick sale but rarely the best finance deal for you. 

In Summary 

Car Dealership Finance	Finance Broker
Limited lender options	Access to dozens of lenders
Sales-focused advice	Client-focused, independent advice
Potentially higher interest rates & fees, overall loan costs	Competitive rates tailored to you, competitive fees and loan costs
One-size-fits-all offers	Customised for personal or business
Fast approvals with trade-offs	Strategic structuring with full review, taking into account the impact on your overall financial position
Commission-driven agenda	Transparent, often fee-free to client, protecting your best interests

Whether you're buying your first car or acquiring a vehicle for your business, we can be the difference between a good deal and a great one. 

Before you go shopping for a vehicle, pause... and speak to Jor’åki Finance about which loan best suits you.