Australian consumers now appreciate the important role played by licensed finance brokers; more so now that people need safe and affordable credit facilities. After the Royal Commission brought to light in 2019, the misconduct and malpractices of some major banks, those in need of a financing instrument are now wary of applying directly with banks.
Why AU Automotive Consumers are Seeking Help from Licensed Finance Brokers?
People who had plans of buying a new vehicle prior to the pandemic had to put such plans aside, as they are waiting for the government to implement the reforms recommended by Royal Commissioner Kenneth Hayne. Their concern is that as most industries are all working toward economic recovery, they have to make sure that if they do get approved for a car loan, they will be taking on a financial obligation that they can afford to pay.
After all, Commissioner Hayne had summed up in his 2019 report that the scandals were due to the profit-driven culture that has been pervading for years in financing industries and car dealerships.
Many consumers understand that car loan rates depend on certain factors affecting their creditworthiness as individual loan applicants. Yet if they have to pay high rates, consumers will not be able to pay the monthly terms if banks will pre-approve them based on their standard terms and schemes. Although there are numerous banking and financing institutions in Australia, not all consumers have the ability to discern which pre-approved loan will not put them at a financial disadvantage.
What Kind of Financial Services do AU Auto Finance Brokers Render?
While a financial adviser can help clients devise a financing strategy that will enable them to purchase a new vehicle on credit, highly experienced and well-connected auto finance brokers can do more.
In addition to crafting a loan scheme based on a client’s pre-approved loan amount, expert finance brokers also commit to finding and negotiating a loan facility with a lender. Not just any lender, but one who is willing to work out a car finance deal based on the loan scheme deemed as beneficial to their client .
The licensed finance brokers in National Loans Australia for one, commit to helping even Australians with poor credit history. That is regardless of the reason; whether due to mismanagement of one’s finances or as a result of certain natural disasters or catastrophic events like the pandemic. NLA’s team of finance experts believe that everyone deserves a chance to obtain safe and affordable loans.
Generally, reputable finance brokers like National Loans Australia, have long standing relationships with several banks and fintech lenders. The latter are the likeliest providers of second-chance loans because unlike traditional banks, fintechs source funds from individual investors willing to expose their money in high-risk but high-interest loans.
To make peer-to-peer loan arrangements mutually beneficial for both investors and borrowers, .the terms of the loan will be customized in accordance with the financial capability of the borrower. In most cases, the licensed finance broker will collect and hold the monthly payments due from borrowers to ensure timely settlements.