Tue, 09/22/2009 - 07:59 — jeremy
Choosing the best Car Finance Brokers
Car brokers specialize in assisting car buyers’ source and purchase cars. They typically offer services such as finding a particular used car model that the customer wants and within budget range, getting the lowest price on a new car, or negotiating with a used car seller on behalf of a client that already located the car by themselves.
It’s given that not all car finance brokers are created fair. You've probably double-checked the numbers, but have you sorted the wheat from the chaff?
Selection
Finance brokers receive "accreditations" from lenders, which are official agreements between lenders and the broker that enable the broker to access each lender's services. The range of accreditations held by a broker governs the range of options they can offer to their clients.
The accreditation process is different from lender to lender, with some requiring very little to provide an accreditation, at the same time as others insist on a shopping-list of items including probity and solvency checks, established trading history, Professional Indemnity insurance cover, trade and customer references and more. Some lenders are so careful that they only deal with one or two of brokers across the whole of Australia!
Tip: When choosing a car finance broker, get to know about their range of lender accreditations. Your brokers' accreditations not only change the range of finance options available to you, but also the quality of those options - the more selective lenders is the more often they provide the most eye-catching finance products. Remember that when it comes to lender accreditations, quantity does not equal quality!
Staff
Choose a broker that recruits and retains professional, honest and knowledgeable staff.
Your finance consultant should be an experienced professional who can demonstrate, in writing if requested, why a particular product is recommended for your specific circumstance. You are entitled to ask for testimonials from previous clients and confirmation of their experience if you wish.
Service
Timely, personal service should be provided, but you should also expect your finance broker to supply detailed information about timeframes, why they recommended it, and any fees and charges related with your finance.
Being able to explain the comparison rate of your recommended vehicle finance and the total cost of your finance package, including any hidden fees or charges is one good quality a finance broker should possess.
Standards
One of Australia’s leading membership body for finance broking professionals is the Finance Brokers' Association of Australia Ltd. (FBAA). It is in the best interest of its consumers that the FBAA promulgates quantifiable professional practice standards in acquiring domestic and commercial funding. The FBAA also believes it’s imperative to the integrity and forthcoming well being of finance/mortgage/broking industry. An established Code of Practice is where these standards are published and obligation to adhere to these standards is a condition of membership.
Credit Ombudsman Service Limited (COSL) is an independent organization that handles complaints about finance brokers. As an ASIC-approved alternative to legal proceedings, it provides resolution about complaints with member organization.
Furthermore, a WA Finance Broker License is as an additional requirement for finance brokers serving clients based in Western Australia. As a WA Finance Broker License holder it entails passing a comprehensive range of checks, educational requirements and operational requirements
Tip: Confirm foremost if your finance consultant or their employer is a member of one or both of these industry associations so you can have a peace of mind in the event of any contest. Search thru their member list to confirm your finance consultant’s membership. Whether your residing in the state of WA or other states of Australia, ensure your car finance brokers is a holder of a WA Finance Broker License for maximum peace of mind.
Security
Is your personal information stored in a filing cabinet or behind a firewall?
Access to your personal, employment and income information including home address details and copies of driver’s licenses information will be requested by your financer broker all the way through the process of application and finalization.
Tip: Let it be your bare minimum that your finance consultant shall be furnishing you of their privacy policy where it details how your information will be gathered and utilized. It is at your liberty to check if your provided information is tenable and if applicable, properly disposed of. Take it as a bad sign if you see tows of unlocked filing cabinets!