The best advice we can provide for customer when it comes to vehicle and equipment finance is to stay away from their in-house brokers and here are the reasons why.

Bargaining power 

The moment you disclose your intention to obtain finance for car purchase you have lost most of your bargaining power.

The vehicle salesperson is more reluctant to drop the asking price because they are now motivated to sell you their financing services, where the room to move on sales price is very marginal when there’s in-house finance involved. Even if you manage to negotiate a better price on the vehicle, they will try to recover some of the cost via their financing.

Best tip is to always advice the salesperson you wish to pay in cash and take delivery by end of month (where the salespeople are more desperate to meet their end of month budget)

Lack of transparency

Car dealer’s in-house brokers are much less regulated like we do as a typical finance broker. What this means is they tend to get away easier with lack of transparency and misleading representation when it comes to finance.

A common scenario is to say you are “approved” on the day you visited their display centre, and will just require a signature on the loan documents upon pick up/delivery a couple of days later, it all sounds very convenient. This way they hope to prevent you shopping around for finance until pick up.

Upon pick up/delivery, surprise surprise, the interest rates, costs and repayments are much higher than initially quoted but you are now under pressure to sign those documents so you can pick up the vehicle straight away without delay. There tend to be unnecessary loan insurance “slided” in the contract without much of your attention too.

Misleading advertising and “guaranteed buyback” schemes

The 0.99 – 2.99% loan interest rate advertising comes at a great cost to purchaser via a much higher than normal initial vehicle purchase price. Regardless of whether it only cost a coffee a day or not, overpaying thousand of dollars for something is never reasonable.

Never ever buy into the “guaranteed buyback” schemes from the dealer as they tend to subject your vehicle to low annual kms allowance, fussy wear and tear provision, and restriction where you must use the dealer for all your servicing and repairs, which tends to be more costly and more frequent.

Apple vs Apple comparision

Before making any comparison between 2 financing deals, you need to make sure the following are consistent.

– Same amount being finance.
– Same loan terms
– Same amount of balloon (loan residual value)
– Whether GST included or not
– Whether the quoted repayments has included all upfront and ongoing fees
– Stay away from rate based quotes are they tend to mislead the true cost of finance

When it comes to sourcing the best deal, Best Melbourne Brokers have never been beaten on price. We have more than 10-20 lenders on our panels to choose from.

Here at Best Melbourne Brokers, we are proud to have a huge range of finance solutions for clients looking for vehicle or equipment finance. 

Some of the vehicle/equipment that we finance includes but not limited to the following:

– Vehicles – trucks/cars
– Cafes/Restaurants/Hotels – for Tills/Point of Sale, Kitchen Equipment, Refrigeration, Sound System etc
– IT Equipment – Computers, Laptops, Servers, Copiers etc
– CCTV Security Systems
– Software finance

At this time of writing, there are quite some favourable low doc policy out there available for commercial clients looking for vehicle finance.

If you have a registered ABN more than 2 years, owns a property or have some deposits for vehicle purchase (30%), and have clean credit file (or with minor explainable defaults), we can generally pre-approve you up to $100K finance with little or no financials needed.