What is an Auto Loan Broker?

If you’re going to do it with a loan, buying a new car is a somewhat complicated process. You’re making a significant commitment, both in terms of cost and time – many car loans are stretched out over several years. So if you’re going to be making large monthly payments for the next 56 months, you want to do it right. One critical player in the purchasing of a new car is the auto loan broker. Auto loan brokers acts as a facilitator – and the best ones act as expediters – between you, the borrower, and the lender.

Auto loan brokers make their living by connecting buyers with lenders. Since automobiles always cost a lot, especially new ones, auto loan brokers are always in big demand. They know what each party wants, and spend their days bringing the two together. Their expertise makes the whole car-buying process move much faster.

If you’re buying a new car, you’ll consult with the auto loan broker and go over your credit history to give him or her the information that’s needed. From there, the auto loan broker will seek out a lender who is willing to float you the cash in order to buy a car. The auto loan broker will use automated matching systems to find the right lender, but can also rely on personal relationships and word of mouth. After all, they work with lenders on a daily basis, and oftentimes come to trust some more than others. Auto loan brokers then receive a commission from the lender. Auto loan brokers will usually not charge a fee for your application. So in addition to convenience, you’ll be happy to know that auto loan brokers are free.

To learn more about auto loan brokers, be sure to consult with an auto sales professional and get their opinion.