When you make an enquiry for car finance, your car loan broker needs to know some information about you, and the car you want to buy, in order to assess your application and make recommendations.
Here’s what they’ll need to know:
1. Who are you?
When you apply for a car loan, you’ll need to provide some information about who you are, including identification. Your broker will ask:
- What is your country of citizenship?
- Are you on a VISA or a Permanent Resident?
2. How will you repay the loan?
To assess your current financial profile and identify how much surplus income you have to put towards your purchase, your car loan broker will ask questions relevant to your overall employment, residential and lifestyle profile.
This is to ensure that they have all of the information to assist the lender in making an informed decision on your approval.
Questions will be aimed at identifying your length of employment, employment status and duration, and financial based questions to ascertain affordability for the loan.
Some examples of these questions include:
- What is your income?
- How long have you been with your current employer?
- What household expenses do you have? (phone, insurance, entertainment, food, bills)
- Do you foresee any changes in your circumstances that would prevent your ability to repay the loan?
- What is your marital status? Do you have any dependant children?
- What repayments were you hoping to make and what is affordable in your budget?
The broker will also investigate details on your credit file, to ensure our application is the first and is approved successfully.
- Have you ever been bankrupt?
- What do you know about your credit history?
- Have you had previous car loans, personal loans, or mortgages?
3. What will you use the loan to purchase?
Your car loan broker needs to know some information about the car you intend to buy to match you with the right loan product. Some of the questions you’ll need to answer include:
- Are you looking to buy from a dealer or Private seller?
- What type of car and purchase price do you need?
Why is each question important?
Each of the questions a loan broker will ask you is important in its own right, as it paints a picture for the lender. The better your broker understands your specific situation, the better the deal they can get for you.
What shouldn’t my broker ask?
Your broker will not need, and should never ask about sexual preference, race, or religion. If you are on a social security benefits for a disability, they will not need to know the reason or type of the disability.
Why use a car loan broker?
A car loan broker can help you to secure a better deal by comparing loans from different lenders, and finding the best fit for your profile. A car loan has costs attached, and can significantly add to the purchase price of the car, so compare your options when taking out car finance.