
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Updated
A car loan broker can help you find and apply for car loans, saving you time and money — or lending some expertise if you’re new to the game. And since many brokers work online, you might not even need pants. But you’ll still want to do your research to make sure you’re working with someone you trust.
A broker act as an intermediary between you and a lender so you don’t have to fill out multiple applications to compare your options. A direct lender funds the loan itself but typically requires a quick application before you can get a quote.
A broker can be useful if you want a good deal but don’t have the time to get quotes from multiple direct lenders. It Brokers work with multiple lenders to find its clients the best rates and terms they’re eligible for. They find loans from banks and other lenders that can meet your needs.
Don’t want a broker? Compare car loans
An online car loan broker can help you in a variety of ways.
Choosing the right broker can help make the car-financing process smooth. Find out what sets these companies apart and what important information to look for before choosing one.
An online car loan broker is quite impersonal. You might never go to a physical office to discuss your loan options, and much of your business may be conducted over the phone or online. If you like meeting a lender face-to-face and want personal interactions, an online broker may not be the right decision for you.
Getting all the right information is vital when deciding which broker you’re choosing. It’s OK to ask questions before agreeing to go with a car loan broker. Having a list of your loan requirements will go a long way in showing the broker what you’re looking for.
Find a car loan you can qualify for
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:
If your broker isn’t charging you anything for the service, it’s a sign that they’re getting paid per client they send to a lender. This is particularly common with online lenders and isn’t necessarily a sign that you won’t get a good deal. But you because these brokers make money from their lenders, your interests might not be as important as keeping the lender happy.
Find reviews of the lender’s services on websites like TrustPilot or Better Business Bureau and ask to speak with former clients to ensure your broker will do the most to get you good rates on your next car loan.
There are a few easy steps to completing an application with a car loan broker and being connected with one or more lenders.
Much like applying with a direct lender, you’ll need to submit a few pieces of information when working with a broker. Your driver’s license, insurance information and proof of residence are most common. You may need proof of your income and employment, and other personal information like your credit score and date of birth.
If you’ve already chosen your car and dealership, provide information about the seller and the car make and model. The further you are in the car-buying process, the better your chances of being approved by a lender.
Buying a new car can be exciting, but before you commit to a loan, keep these points in mind:
When it comes to financing your next car purchase, an online car loan broker can be a great option if you want to avoid filling out multiple applications and waiting to hear back from each individual lender. Make sure to conduct a thorough check on the broker you choose, and don’t forget to compare your other car loan options.
Image source: Shutterstock
The White House announced new changes to PPP loans, helping the smallest businesses and opening access to people with student loan defaults or nonfraudulent felony convictions.
See how much interest you could earn with a savings account from Capital One.
7 tips for starting a portfolio if you’re new to investing.
Find unusually low face values for a whole life policy, ideal for supplemental insurance.
Balance your portfolio and maximize returns with these tips.
A health savings account (HSA) can help you get prepared for your retirement. Learn more.
Small lenders continue to offer a lifeline to small businesses for First and Second Draw loans.
Biden’s plan to replace the federal fleet with American-made electric vehicles gives another boost to a red-hot sector led by Tesla.
The rush of turning $19,500 into $1 million can be enticing, but it’s not always the best idea.
Chat with your therapist via text, phone or video for $80/week with this app.