Mortgage broker breaks into car financing

July 27, 2016

In a bid to cater to its customers' growing financial needs, Mortgage Choice has expanded its suite of services to include a branded asset finance offering.

Mortgage Choice chief executive officer John Flavell said it made business sense for the company to offer more than just mortgage advice to its customers.

“Industry data shows that on average, 50% of home owners will look to purchase a vehicle six months after they buy a property,” he said.

“And, when you consider that more than 50% of all home loans are now written through mortgage brokers, it is clear there is a massive opportunity for the third party distribution channel to help more of their customers meet more of their financial needs.”

Mr Flavell said Mortgage Choice's new asset finance offering gave its customers the ability to use a professional to negotiate a competitive car loan on their behalf.

“In the same way our brokers can source their customers the best home loan rate for their needs, they can now source all customers a great car loan rate as well,” he said.

“Better yet, when customers source their car loan through Mortgage Choice, they can avoid falling for car yard offers that are too good to be true.

“Today, many car yards offer 0% interest on car finance. And while this sounds like a great deal on the surface, when you read the fine print you may find the story is a little different.”

According to Mr Flavell, 0% car finance deals are often accompanied by significant hidden fees and charges.

“While 0% sounds generous, the deal isn't entirely interest-free,” he said.

“The finance provider still earns their cut of interest but instead of the money being spread over a series of repayments, the interest cost is factored into the upfront sales price of the car. This means the dealer may not be able to afford to be flexible on the price of the vehicle, or be particularly generous with a trade-in offer.

“As part of the Mortgage Choice Asset Finance offering, we can not only provide our customers with a competitive car loan sourced from one of our 25 plus lenders, but we can also help buyers source the right car at the right price through our national car buying service.”

Mr Flavell said Mortgage Choice's move into car finance was a natural move for a business that has proven itself to be an advocate of the diversified business model.

“At Mortgage Choice, we understand that 1 plus 1 can equal something more than 2 for our customers and stakeholders. As such, we will continue to concentrate on developing a multi-channel, multi-service hub that successfully caters to our customers' growing financial needs,” he said.

“Put simply, we want to be known for offering more than just mortgage advice. We want to remain relevant with our customers and we will do that by delivering a broad range of financial services.”