Choosing the right finance provider is an important step when buying a new car. Emphasis on the word right. Your choice of financing can mean the difference between you enjoying your investment in your new ride for years to come, or feeling like the purchase was a burden. We understand that the options laid in front of you can be tricky — especially if it’s your first car loan. So allow us to break it down for you.

‌Bank financing

Getting a loan from a bank is one of the most popular and traditional means of car finance. Though the process is straightforward, there are a few factors that could make getting approval a little complicated. In the end, it all boils down to how good your credit situation is.


  1. Speedy approval if you have an existing account with the bank. Having a personal account with the bank makes it quicker for them to identify whether you qualify for a loan or not. If you have healthy finances, this should not be a problem.
  2. If you don’t have an existing account with the bank that you approached, it’s okay. They would still process your application anyway, it just may take a bit longer.


  1. Interest rates are fixed whether or not you have a good credit score.
  2. Banks require more collateral as security and sometimes, the approval of your loan depends on this. If your application is tied to an asset that they can use later on, you have a higher probability of getting approved.
  3. A stable source of income is a must. If you have a bad credit history, this can also be taken into consideration and can slim your chances of getting approved.

Finance brokers

The word ‘broker’ comes from the Old French word “broceur” which means small trader, now commonly known as a middle man or a third person facilitator between a consumer and a seller. The first challenge in hiring a broker would be to ascertain if they are legitimate. It’s important to hire a licensed broker to handle your car loan application.

Here are some pointers:

  • A licensed broker will not ask for upfront fees before providing the service
  • Will not rush your paperwork
  • A reliable broker should be easy to reach through the contact information provided online
  • If your state requires it, your broker must have a license — you can check with your state’s department of business oversight


  1. If you have bad credit, worry not because you have a better chance with a broker. The broker is in charge of finding you a lender that you are eligible for.
  2. With the broker in charge of the negotiation, it’s possible that you may be getting discounts, plus the broker can negotiate loan terms and get competitive interest rates for you.
  3. There is less work on your part since they will help you with the application papers.
  4. If you intend to buy an older car or import a vehicle from overseas, a broker can handle it for you through their connection with lenders.


  1. Most transactions with brokers are done online so wouldn’t normally get a face-to-face encounter with them or the lenders. So if you’re uncomfortable with being unable to meet in person, reconsider your financing method.
  2. The process is subject to additional fees. Brokers do get commission per the number of clients they signed up with the lender so yes, there will be additional fees which is intended for setting up the loan application for you (minus the hoops and loops).

Car dealerships

Car dealerships make car purchases a breeze. It’s by design. However, purchasing on site can have its disadvantages, especially for the uninitiated. At the same time, it can make your car buying experience quite pleasant if you do your homework beforehand.


  1. Most dealers have in-house finance that can take care of everything, so all you need to do is sign up for it.
  2. It is easier to establish a relationship with the dealership in terms of warranty restrictions because they will be the one who will handle them when the need arises.


  1. The convenience that car dealerships provide comes with a price. These places don’t always offer the best deals and it will become easy to overlook.
  2. Unlike brokers, most dealers only have access to one finance provider. So if you don’t meet the criteria of their partner finance provider, you might not be approved, or may be approved but with a much higher quote.

Take a look, We have some more information on Buying a Car from a Dealer.

If you’re after a competitive rate, it will be more advantageous to visit a specialised broker such as to get a pre-approved loan prior to visiting the dealer. Not only that, but they also have access to other local dealership which fits your options.


Arming yourself with knowledge is key to finding the best car deal that will benefit your financial situation. Regardless of which financing you choose, remember to do your research first. If you have questions or need some advice on obtaining finance, we can help you make the right decision.

Call us today and talk to our team for fast and easy financing of your new or used car, or apply online!