Guest Contributor: Creditplus, An e-zoomed Partner
How A Finance Broker Helps The Car Buying Process: A Brief Introduction
The automotive market in the United Kingdom, is one of the faster-moving car markets globally. Brits are changing their vehicles as often as their smartphones. As a result, two- or three-year finance deals are growing ever popular. Though the range of available EV purchase and finance options for consumers is vast, there is also significant confusion.
When you’ve decided that it’s time for a new electric car, one of the first decisions you’ll need to make is where to look. Historically, potential buyers would visit their nearest manufacturer dealership to browse, take a vehicle for a test drive and discuss finance options. In more recent years, the car buying journey has evolved and along with advancements in technology, new sales channels have become available to consumers.
Manufacturers, for instance, have online configurators where you can refine the perfect green car, whilst a whole host of classified sites, such as AutoTrader, e-zoomed, Exchange and Mart allow you to browse for cars from the comfort of the living room. Once you factor in the increased presence from magazines, public forums and review sites, the internet becomes a great source of vehicle knowledge.
The second question you’ll ask however, is how to pay for it. The online car finance broker market has grown considerably over the last decade and is now one of the most popular ways to fund the purchase of your next zero-emission car. Not only are there now more companies providing broker services, but the products available have increased – ranging from Hire Purchase (HP), Personal Contract Purchase (PCP) to just-add-fuel subscriptions. Despite the growth, dealership finance is still the most common method, but which is best for your next electric car purchase?
Brokers act as the independent intermediary between you, the finance company and the vehicle seller. As an independent adviser, brokers have the benefit of impartiality and are solely interested in their customer, regardless of vehicle or lender.
The panel of lenders they have at their disposal are often larger than in a dealership too, which means there’s a higher chance of being accepted if your circumstances are not in the criteria of a manufacturer finance house. However, even customers with a prime credit score can benefit from the knowledge brokers have of the market.
Dealership used vehicle stock is predominately made up of part-exchanges from customers buying their next car and can usually be skewed towards the franchised manufacturer, whereas brokers have access to vehicles nationwide and a variety of partners offering stock lists not available to the public. This can be especially useful if the vehicle you’re looking for is a performance, specialised or alternative-fuelled vehicle. So, in essence, the most important aspect of using a broker when looking for a new car is the dedicated adviser who will work with you to firstly ascertain what vehicle is right for you, to find the finance company who is able to facilitate your circumstances and finally arrange for a pre-delivery inspection and delivery.