This is a topic that tends to really impress and/or surprise people who are looking at buying a brand new car.
btw – whether you’re buying your car and doing the finance through the dealership or a car finance broker you’ll still end up with the exact same car of your choice…
Don’t get me wrong, I’m sure there’s some ‘good eggs’ in the dealerships but unfortunately most of them have some serious sales training that leads to the dealership making a heap of cash and the consumer (you) coming out quite a bit worse off.
Its for this reason I wanted to share some insight into how it all works and present a comparison.
BROKERS VS DEALERSHIPS
Even though I’m a Broker and therefore possibly a little biased I’m going to keep it very honest, after all there are some benefits from buying from a dealership as well.
Ok, I’ll start with dealerships
Basically the way I see it is the dealerships have the WOW FACTOR up their sleeve. This is a massive card to have because buying a new car can be a very emotional and fun thing to do.
The wow factor is when you’re in the dealership seeing the brand new car you’ve been wanting or dreaming about for some time, and WHAMMO. There it is – WOW you’re super exited and while you’re in this state they have you in their back pocket…
Positives doing finance with a dealership include:
- It’s more fun
- It’s convenient
Negatives doing finance with a dealership include:
- Its often much more expensive
- You often will not be told the whole truth
- It may leave you in a much worse financial position
- A worse financial position means a shittier lifestyle
Now for the car finance brokers side of the story
A good finance broker is someone who has accreditation to write finance for you using a wide range of banks and lenders and has an excellent knowledge on what lender will best suit your needs and of course be able to compare the savings so you can walk away with an excellent deal.
Positives using a finance broker include:
- It’s often much cheaper
- You’ll often be told the whole truth
- You may leave in a much better financial position
- A better financial position means a better lifestyle
Negatives using a finance broker include
- It may not be as fun
- It may not be as convenient
All make sense?
There’s a heap more info I could give you but I like to keep my blogs reasonably short for easy reading, if you want to dig deeper into the pros and cons give me a call and I’ll go right over it with you.
Stay tuned, next car finance blog will expose how we get paid and how the dealerships often overcharge without you knowing.
Yours truely – Quinto White – Your Awesome Mortgage & Car Finance Broker – 0407 577 792
