Need a new car but don't have the full price? Car finance is a popular way to get the vehicle you want without paying for it all upfront. Let's break down how it works and what you need to know.
Car finance is basically a loan that helps you buy a car. You borrow money from a finance company, and then you pay it back in monthly instalments. The company owns the car until you've paid it off.
When exploring car finance options, you'll often come across the terms "lender," "broker," and "dealership finance." Let's break down what each one means:
A car finance lender (Like us!) is the company that gives you the loan. They could be a bank, a credit union, or a company that only does car loans. When you borrow money for a car, whether it's with a broker or dealer, it's the lender that your agreement will end up with.
Brokers work with lots of different lenders. They know what offers are available and can help you choose the car finance agreement that's right for you.
Car dealerships often have a panel of car finance lenders. This means you can apply for a loan directly through the dealership! However, your actual loan agreement will be with a car finance lender.