Evaluating Benefits of Loan Comparison Sites v Finance Broker Services

Yes we all love the internet and the convenience and access to an increasing range of online services to make our lives seemingly easier. Jade Finance has been an online lender for many years as we were well aware of the advantages of providing online access to our lending services early on. But there can be downsides when buyers rely and depend too heavily and place too much confidence in information and answers sourced purely from online resources in regards to loans. When it comes to sourcing loans for cars, boats and other consumer goods that is particularly highlighted. Loan comparison sites are widely available and play an important role in assisting consumers. In fact we provide our own version of a loan comparison resource. Many dealers of goods such as cars and boats also offer a ‘from $ per month’ in their ads and promos.

With the rising costs of living putting pressures on businesses and households, it is more important than ever for buyers to source the cheapest loans when buying cars, boats, caravans and other goods with finance. But the downside can be when they source loan information in regard to how much a loan will cost from a generic online source without the follow-up to the lender. They proceed to make a purchase commitment and perhaps pay a non-refundable deposit, only to discover when a loan application is submitted, the loan offer made varies considerably from what was expected.

There are alternative processes which can be taken to overcome these issues. In particular, reaching out to professional services. Online resources certainly have their place in finance and lending but need to considered and used in the right context.

In addition to general information on the lending market, we provide an evaluation of the benefits of loan comparison sites and engaging the services of a finance broker in seeking the cheapest loan for a car. We’re focusing on the motor vehicle market in this piece as it is one of the largest lending sectors.

Lending Market: Overview

The lending market for motor vehicle finance is vast with numerous sources of car loans available for both private and business buyers. These sources include the major and other banks, a selection of car makers and their dealers, finance companies, non-bank lenders and of course finance brokers that specialise in car loans.

The types of loans offered by different lenders will vary in regard to a number of loan elements including:-

  • Secured or unsecured loan format
  • Minimum and maximum loan amounts
  • The minimum and maximum loan term
  • Fees and charges
  • Fixed or variable interest rate
  • Interest rate

When seeking the cheapest car loan, the interest rate will be the key factor that buyers will be looking at. The rates vary across the market as lenders individually decide how they will price their loans. The RBA sets the cash rate but then each lender decides what interest rate they will apply to their specific finance products.

Using Online Resources

Conducting a general review of car loan interest rates via online resources is definitely a great starting point to get an idea of the variations and what is available across the market. But it is only a starting point. Deeper analysis of the actual loan type, details, fine print, conditions and how the application criteria and other conditions apply to your individual circumstances is required.

This is a key point to appreciate – the interest rates and loan offerings which are advertised by lenders will typically relate to what can be achieved for applicants with a good credit rating and for new cars. Unless of course other details are stated such as for used car finance.

So making final decisions on what a car loan may cost you based solely on a rate or loan estimate sourced from a generic resource may not be what an individual will be actually offered. If the credit profile is not rated as good or other eligibility criteria in regards to affordability and financial status are not met, the loan may be higher than what is advertised.

Loan comparison sites often display a range of lenders and loans and can often include notes based on an assessment by the site’s experts. The comparisons are often drawn between lenders not necessarily what is best suited to specific buyers. These notes may provide some direction to buyers as to why that particular loan or lender may or may not suit their circumstances. But it is then up to the buyer to make their decisions by evaluating that information.

We offer a range of online resources which are designed to assist car buyers with budgeting, car selection and to formulate how they would prefer their loan be structured in regard to loan terms to achieve a target repayment.

Our Car Loan Calculators are extremely popular. They can’t tell if the user has a good or bad credit profile or what their income and expenses are.

Online resources and comparison sites don’t have the functionality to provide a custom solution by way of a specific car loan quote or offer to suit individual circumstances.

Obtaining a Custom Car Loan Offer

To secure a custom solution without going through the time-consuming process of applying to multiple lenders for offers, is to utilise the services of a car finance broker such as Jade Finance. We have accreditation with multiple banks and lenders and the expertise to immediately identify which particular lender will be best-suited to the requirements of our customer.

We come back to you promptly with a quote which is specifically sourced to your details. It’s not a time-consuming process and there is no obligation to accept any offer which we present. We act extremely quickly to deliver fast approvals to ensure our customers can proceed with their purchase. An important factor in the current limited availability car market.

In summary: comparison sites for car loans and online lending resources are extremely useful tools to assist buyers in the initial stages of seeking motor vehicle finance. But any results obtained from using online resources or advertisements for rates and loan offers need to be considered in the context of the individual buyer.

Start there by all means. But for the cheapest, tailored car loan offer sourced from a vast section of the market, a broker offers significant benefits.

Contact Jade Finance 1300 000 008 for tailored, cheap interest rate car loans