Dealer vs broker car finance – which is better?

Dealer vs broker car finance – which is better?

If you’re in the market for a car on finance, you may think heading straight to the dealer is the best options. There are many benefits of sorting your car finance direct at a lender, such as competitive finance rates and the convenience of sorting your finance direct. However, more people than ever are choosing to source their own car finance deal elsewhere such as through a broker or a bank. But how do you know which financing route to take? Our guide below helps you to decide whether you should stick with dealer financing or use a car finance broker to help get you the approval you want. 

Benefits of using a car dealer to sort your finance:

Dealer finance has long been a popular way to get the car you want and the finance to fund it. Let’s take a look at the benefits of using a dealer to sort your finance

Easy and convenient

Car dealers can have access to many new and used car finance deals that can be suitable for a range of people. Using as dealer can be a convenient option for many people. You can see a car you like online, take a test drive at the dealer, compare a range of cars, and then sort your finance deal for it. Using a dealer can save you time and effort and, in some cases, can be faster than sorting your car finance yourself. 

Part exchange your car

You could get a better car finance deal if you have a car to part exchange. Many car finance brokers do accept part exchanges, but it can be easier to sort it directly with the dealer. A part exchange is when the dealer gives you a valuation for your current vehicle which is then used towards the cost of your next car. This can be an easy way to get rid of your old car whilst picking up your new one and saves the hassle of having to sell it yourself. 

Competitive rates

If you’re looking for a new or used car and know the brand you want to buy from. You could get a better, more competitive rate if you go direct to the dealer. Many cars especially new cars can come with 0% finance as an introductory offer to get you through the door. This can benefit you as you’ll not need to pay any interest on top of your car finance deal and save money in the long run. However, low interest offers may be subject to credit status. 

How using a car finance broker can get you a good deal

Car finance brokers are a car finance company who compare rates from a range of trusted UK lenders. For many people, using a car finance broker can be an easy way to compare car finance deals without having to apply with multiple lenders.

Range of car finance agreements

Car finance brokers have access to a number of UK lenders who can offer different car finance packages. If you’re not sure which agreement is right for you, brokers can help you explore different financing options such as PCP finance deals and hire purchase. Some car dealers may only have access to a few different lenders, but many car finance brokers can compare numerous lenders at the same time to get you the best deal possible. 

Better options for bad credit

It can be hard to sort your car finance at a dealership if you have a bad credit score. Some of the best rates are usually reserved for people with good credit as they are less of a risk to lend to. Car finance brokers can have access to more lenders and some specialist bad credit car loan lenders who specialise in helping people with low credit. When applying with a broker, you only need to apply the once as well so there’s no harm to your credit score when shopping around for the best loan. 

Get the car you want

One of the biggest benefits of sorting your finance yourself is that many car finance brokers allow you to get any car you want. You can shop for a car within your finance budget from any verified dealership in the UK. The only restriction is that you have to use a dealership that is verified by the Financial Conduct Authority. However, this help to prevent you from getting a faulty car or a dogy deal and adds another layer protection to getting a car on finance. 

Kate Dyson

Kate is the Founder of The Motherload, the 'owner' of one husband, two daughters, two cats and one rabbit. She loves wine, loathes exercise and fervently believes in the power of women supporting women. Find me on instagram: @themotherloadhq

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