FINCAR

Car Finance Brokers Save Dollars and Time

Tuesday, 21 October 2008 18:19

Jim found the car he wanted, and was certain his bank would provide finance. When Harry suggested he use a finance broker, Jim resisted initially, thinking this would impose unnecessary extra cost.

Harry introduced Jim to his broker. The finance broker asked Jim about his salary and his relationship with his employer, then suggested a Jim consider a 'novated lease'. Jim was able to reduce his income tax considerably by leasing a vehicle for four years, with the option to purchase it for a small agreed residual at the end. His employer reduced his salary a little, and made all the lease payments from the sacrificed salary. For Jim, it was a convenient, low cost, worry-free solution, but one he would never have considered if it weren't for Harry's friend's advice.

Unless you are a finance expert, using a car finance broker to arrange finance is almost certain to expose financing options you would otherwise not consider, and in many cases these options will prove more economical and convenient than more traditional finance packages. Look through the list of options on the Fincar web site (www.fincar.com.au)! Do you understand the advantages and tax implications of every one of those options?

Brokers know:

• Which financiers are reputable and offer the most favourable rates and terms
• The best way to structure finance for tax savings
• How to recover GST efficiently
• How to minimize fringe benefits tax obligations
• How to reduce the impact of a car purchase on business cash flow.

Self-employed business operators are often unable to produce adequate historical profit figures to satisfy their finance provider. A car finance broker will know which financiers are most likely to lend to the self-employed on favourable terms, and how to best present your case. Lenders usually charge higher interest rates to those with inadequate business finance histories, but a broker is likely to be able to negotiate the same favourable rates for you as would be offered if you could demonstrate a history of proftable trading.

Private buyers will appreciate the convenience of working through a car finance broker. They know the lenders and their policies. They know what information lenders need to process an application efficiently. They know which lenders offer the best all-round deals, and are able to quickly identify the lender most likely to accommodate any special requirements.

If you have a bad credit history, using a car finance broker may be essential to secure finance on favourable terms. Your broker knows how to most favourably present your case, and which lenders are prepared to consider lending to buyers with a bad credit history. A broker can help you work out a budget to determine how much you can afford to repay, and can provide the lender with assurances that you have the capacity to meet loan obligations. Lenders are more comfortable relying on the broker's assurances than yours!

Using a car finance broker can be a huge time saver. Most will come to your business premises, and many will meet with private buyers in their own home after hours. Frustration and stress is eliminated, because the broker won't waste your time with applications that won't be approved. Brokers can often negotiate pre-approval, so that you can go car shopping with complete confidence and sign for the vehicle of your choice without hesitation.