Car loan broker: get matched with a car finance broker

What does a car loan broker do?

A car loan broker sits between you and the lenders. The work that matters happens before you apply:

Compares lenders

The broker prices your application across the lenders on their panel: banks, non-banks and specialist car lenders. That is the difference from a bank, which offers only its own loans, and from a dealer, which arranges finance through the lenders it works with.

Sets the structure

Secured or unsecured, the term, whether a balloon makes sense, and for a business car whether a chattel mortgage or lease fits your accountant's advice. See the business car loans guide for the business side.

Checks lender appetite first

Lenders differ most on older cars, private sales, self-employed income and credit blemishes. A broker checks which lenders will take your file before anything is lodged, which keeps declined applications off your credit report.

Runs the application to settlement

Documents, the lender's questions, the PPSR registration and payment to the dealer or seller. Many brokers arrange a pre-approval first, so you can negotiate the car's price as a cash buyer.

How car finance brokers are paid

Car finance brokers are usually paid a commission by the lender when the loan settles, and the commission is disclosed in the broker's credit guide. Some also charge you a broker fee; Moneysmart notes that a broker fee must be disclosed on the finance contract, and that a car loan arranged at a dealership can carry fees to several parties, including a dealer or introducer fee. Ask for every fee in writing before you proceed.

On matches made through this site: Your Finance Guide is free to use. Licensed brokers who meet our criteria pay Your Finance Guide a partnership fee to receive enquiries from this site. The fee is paid by the broker, not by you, and is not added to your loan. Brokers are usually also paid a commission by the lender when a loan settles. Full details are in our Credit Guide.

Dealer finance vs bank vs broker

The three channels price the same loan differently. The full comparison has the numbers; in short:

ASIC's June 2026 review of more than 350,000 car loans, which Moneysmart also cites, found big differences in the fees borrowers paid, with dealer-arranged finance regularly exposing borrowers to excessive fees. Whichever channel you use, compare the comparison rate on the same amount and term.

How to check a car finance broker's licence

Anyone arranging a car loan for you must hold an Australian Credit Licence or be a credit representative of a licensee. Checking takes a couple of minutes:

1. Open ASIC's Professional Registers search.
2. In the Select Register drop-down, choose Credit Licensee or Credit Representative, as Moneysmart suggests.
3. Search by the broker's or business's name, licence or representative number, or ABN.
4. Check the status is current and read any conditions on the licence; this information is free.
5. Ask for the broker's credit guide, which sets out how they are paid.

ASIC also keeps banned and disqualified registers, including people banned from engaging in credit activities.

Best interests and responsible lending

The statutory best interests duty, in Part 3-5A of the National Credit Act, is written for mortgage brokers (ASIC's RG 273). A car finance broker is bound by the responsible lending obligations in Chapter 3 of the Act (ASIC's RG 209), which means it must not suggest a loan that is unsuitable for you. It still pays to ask any broker why they recommend a particular loan, and what the other options were.

What to have ready

• ID: a driver licence or passport
• Income: recent payslips, or for the self-employed, BAS, bank statements or tax returns (see low doc car loans)
• Your living expenses, debts and credit limits
• The car: price, year, kilometres, and the dealer's or seller's details; the VIN for a private sale
• Any deposit or trade-in, and for a refinance the payout figure on your current loan

On $30,000 over five years, a rate of 6% instead of 8% is about $580 against $608 a month; the documents above are what let a broker find where you sit.