If you are looking to finance a new car then the total amount of money you'll have to pay must be one of your biggest concerns. The retail price is easy to determine but what you'll pay on top of that needs some computation.

In general, here are some the things you need to pay when obtaining a car loan.

• Application Fee
• Interest rate
• Monthly Fees
• Annual Fees
• Early termination fee
• Personal Property Security Register
• Etc...

Some of them may or may not apply depending on who you finance your car with. Often lower interest rates come with higher upfront or end-of-term fees, which may end up costing more than the interest costs.

The key is to find a lender that has the best financial package to suit your situation.

How do you do that?

By working with a finance broker.

A finance broker is a credit specialist who can align your needs with a custom solution from the right lender. Be it a bank, credit union, or a non-bank lender, a finance broker can help you choose the best loan and do all the legwork for you – from application up to the moment you drive your new car.

Did you know that there are more than a hundred banks and credit unions in Australia? Plus numerous non-bank lenders that also offer car loans?

Do you think you can effectively compare car loans by obtaining quotes from them individually? That will take a lot of effort, money, and time that you probably do not want to waste running around from one bank to another.

Also notice how with every enquiry your chance of success decreases and the rate increases? This is because every enquiry affects your credit file and decreases your chances of getting approved.

Finance brokers like 1800Approved have access to multiple lenders and have pre-qualified those that are reputable and provide the most value to customers.

They can compare 40+ lenders without affecting your credit file. This way, you can be sure that you are receiving that most competitive quotes in the market.

Many people think that they will incur additional charges if they work with a finance broker. That cannot be further from the truth! You actually save money if you work with them! Furthermore, you save a ton of time because they do all the hardwork for you. If you sum it all up, you actually save thousands.

In a nutshell, here's what a finance broker does for you.

• Helps you review your finances and requirements to determine your chances of getting approved.
• Obtain quotes from multiple lenders without impacting your credit score.
• Helps you review and compare quotes in order to find the best one.
• Takes care of all the paperwork until you get your new car.

Not all finance brokers are the same though so you have to make sure that you are dealing with a legitimate one.

Here’s how to qualify a finance broker to work with.

• Make sure they are registered. You can check them out here.
• Make sure they are knowledgeable by asking lots of questions.
• Check for reviews online.
• Ask about their previous customers and success rate.
• Ask about awards and recognition received in the industry.
• Determine how long they’ve been helping people secure a car loan.

Finance brokers make car financing a whole lot easier especially if you do not know the ins and outs of financing. Many car buyers, especially first time buyers, end up with the worst deals because they do not know how to effectively compare car loan rates. Most people look at the interest rate alone not knowing that fees and other charges could offset or end up costing more than the low interest rate on offer.

Believe it or not, a 10% interest rate could be a better deal than a 0% interest rate.

Ask your finance broker about it.