Car Finance Brokers: Who are they?

car finance broker

It can feel daunting at times to buy a car, especially when it is the first time that you are making such a purchase. Car Finance is an ideal way to purchase a vehicle, not least because it will save you money and because a car finance broker like Accept Car Finance would be taking a greater role in handling the process, thus making life easier for you as you prepare to get behind the wheel. In this article, we will mention some brief points as part of an introductory guide to car finance.


So, there are four main types of car finance, and we have covered these many times before, and we are also planning to cover them again in the very near future. They are Personal Contract Purchase (PCP), Personal Contract Hire (PCH), Hire Purchase (HP) and Personal Loan (PL). Each has their own unique traits as it pertains to the terms and conditions of a deal, but all of them will allow the driver to enter into a third-party agreement for a vehicle over a long-term period of time. It is worth checking out our archive of blogs on each of these plans in order to gather a further understanding as to what each would involve.


Dealership finance brokers always aim to ensure that their customers can benefit from the very best car finance plans possible. So many different terms and conditions could be tweaked to deliver this outcome, but it is also worth recognising our role not only as a supplier for vehicles, but as a broker for a car finance plan too. What is a broker, though, and how can this be of additional benefit to the customer especially anyone with bad credit? Allow us to explain.


Who is considered a broker?

A car finance broker essentially acts as the middle man for a deal. In a typical circumstance, the driver will communicate with the showroom directly and potentially agree on the spot to a purchase, or they will work with a finance company, who will find the best deals available based on their particular circumstances. With a broker, however, the third party – in this case ourselves as the finance company – will take a stronger role in proceedings, asking further questions and looking at any additional ways to trim down the cost of a finance plan.


This is beneficial to the motorist for obvious reasons:  if there is an opportunity to lower the price of any purchase, not least a major financial outlay such as a car, then the customer is always going to be interested. Crucially, however, this has to be achieved in a manner that is legal, feasible and sustainable, so they couldn’t just ask their next door neighbour who knows a thing or two about cars to find a way of lowering a car price in the event that it all went wrong. With a finance company, you know that any steps taken to bring down the cost of the motor will be credible and logical, and you know that you can trust the finance company in its role as a broker, so the driver is more likely to consider the finance provider’s participation in proceedings.


What’s more, when the likes of ourselves go a step further and act as a broker for a car finance plan, we will be able to access some additional plans that would normally not be possible. We offer deals to our customers based on fixed weekly, monthly or annual prices, but as a broker, we are able to nip and tuck and find a way to bring costs down here and there, which could open the door for the customer to suddenly be able to afford a newer or nicer vehicle. This is also of benefit to any drivers who have low credit scores, since they might not feel as confident in pushing ahead with a potential purchase, and also for first-time car buyers, who are not as experienced when it comes to negotiating a car finance agreement.


What do you need for a successful application?

We also wish to mention that each driver would need to prove their eligibility for a finance plan before being accepted. This includes basic details such as having a qualified driving licence and are over 18 year, but it also includes defining whether or not the motorist would be deemed capable of keeping up payments for a number of years, especially for a higher-priced car. This generally comes down to a driver’s credit score and also any past experience of owning a vehicle. If you have a good credit score you could be eligible to 0% APR finance subject to status. In certain cases, a track record of failing to fully pay off a vehicle or simply not having sufficient funds would be red-flags that could be detrimental to a deal being agreed. Usually, our customers are able to prove that they can indeed meet the criteria, but if they cannot, then their options would have to be drastically changed in line with their circumstances.  

As you can see, then, it is well worth considering the position of as a car finance broker, and it is something for you to seriously think about when the time comes for your next vehicle to be bought.

Read more about this topic by visiting Accept Car Finance website listed above or google car finance brokers to see the best options available in the market.