Compare car loan brokers
Get help finding the right auto financing rates and terms for your budget with a car loan broker.
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A car loan broker can find you a lender and help you apply for a car loan, saving you both time and money. You can also benefit from your auto loan broker’s expertise if you’re new to financing a car. But you should still do your research to make sure you find the best car loan broker for your needs.
There are a few key differences between a car loan broker and a car lender. A lender will only offer you its own products, whereas a car loan broker will browse through car loan options from multiple financing companies and suggest the right products to fit your needs.
By sifting through multiple lenders for you, a broker saves you the trouble of having to get multiple quotes yourself. An auto loan broker then also helps you fill out the loan application for whichever option you choose.
There are a variety of benefits that come with using a car loan broker in Canada.
Choosing the best car loan broker for your needs can help make the car financing process smooth. Here are some things to keep in mind when deciding which broker to go with.
It makes sense to go with an auto loan broker that searches through a large number of lenders to find options for you. Check that any broker you’re interested in is partnered with a large network of auto financing lenders in Canada – from the big financing companies to the smaller ones that you’ve maybe never heard of – so you have a good range of options to choose from.
Before you commit to a broker and its affiliated lenders, you’ll want to know what sort of company you’re working with. A broker’s online reputation and ability to answer your questions will be important when you’re deciding which company to choose.
If you have bad credit, find an online auto loan broker that can help you find a loan for your credit range. If you have a specific budget, find a broker that is skilled in negotiating with lenders. Whatever your needs, there is likely a broker out there that can meet your expectations.
Never stay quiet during the loan process. You should ask questions of every broker you find and make sure you keep a list of the broker’s fees. Each service the broker offers may have a different fee, so you should request a full outline of charges to compare brokers. Keep in mind that a car loan broker should be transparent with their fees.
The most important thing to know is to make sure that your broker is acting within the law by having a provincial licence if it’s required. Check with your province’s department/ministry tasked with regulating vehicle sales. Below is a list of such organizations:
Province | Auto Sales Regulatory Body |
---|---|
Alberta | Alberta Motor Vehicle Industry Council (AMVIC) |
British Columbia | Vehicle Sales Authority (VSA) |
Manitoba | Manitoba Motor Dealers Association (MMDA) – New Car Dealerships Manitoba Used Car Dealers Association (MUCDA) – Used Car Dealerships |
New Brunswick | Department of Public Safety – Motor Vehicle Branch |
Newfoundland & Labrador | Government of Newfoundland and Labrador |
Nova Scotia | Government of Nova Scotia |
Ontario | Ontario Motor Vehicle Industry Council (OMVIC) |
Prince Edward Island | Government of Prince Edward Island |
Quebec | Société de l’assurance automobile du Québec (SAAQ) |
Saskatchewan | Financial and Consumer Affairs Authority of Saskatchewan (FCAA) |
Getting all the right information is vital in making your decision, so it’s okay to ask questions before agreeing to go with a car loan broker. Making a wish list of your loan requirements can also help you show the loan broker exactly what you’re looking for.
Compare car loan broker options
There are two main risks with online car loan brokers: disreputable brokers and free online brokers that don’t have your financial interests in mind.
Disreputable brokers are brokers that charge a fee but don’t do any work. You can avoid them by looking out for these warning signs:
Brokers that don’t charge any fees are likely getting paid for referring clients to lenders. This is particularly common with online lenders and isn’t necessarily a sign that you’ll get a bad deal. But because these brokers make money from referrals, your interests might be less important than keeping partner lenders happy.
Check out customer reviews on websites like TrustPilot or the Better Business Bureau to find out if your broker offers reliable service.
There are a few easy steps to completing an application with a car loan broker.
Here’s what you’ll need to submit as part of your application:
You’ll also have to provide information about the car you’d like to buy and the person or company selling it (if you’ve chosen your vehicle).
The more complete your application, the better your chances of getting it approved. Online brokers work with a variety of lenders, so they’ll help you cast a wide net by highlighting the strongest aspects of your application.
Buying a new car is exciting, but there are a few things to keep in mind before signing any binding contracts.
A car loan broker can be a great option if you want to avoid filling out multiple applications and waiting to hear back from each lender. But make sure to thoroughly check the legitimacy and transparency of your auto loan broker. Learn more about car loans in our detailed guide.
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