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Demand for car loans up more than 250%, says aggregator

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Julia Corderoy | 04 Dec 2015, 08:00 AM Agree 0
Motor vehicle loans have surged by more than 250% over the past year, a specialist asset finance aggregator has claimed
  • king clive | 04 Dec 2015, 11:08 AM Agree 0
    Why on earth do brokers use aggregators for car loans? What value do they add?
  • Samson | 17 Dec 2015, 10:04 PM Agree 0
    How does one do car loans? My aggregator (Vow) has no access or offer any lenders related to car lending.
  • king clive | 18 Dec 2015, 11:33 AM Agree 0
    Samson, get accredited with Macquarie direct. Get full comm.You shouldn't deal via an aggregator who will take 30% and do nothing.
  • Damo of Adelaide | 21 Dec 2015, 10:31 AM Agree 0
    Samson, there are some aggregators out there that specialise in just leasing. I'm happy to assist helping you or any of your Vow colleagues get up and running with Car Finance options for your clients.
  • Georgia Underwood | 07 Jan 2016, 11:52 AM Agree 0
    Hi King,

    There are quite a few advantages for using an aggregator to submit asset finance. The mains ones being you have access to an extensive panel of lenders through the one channel. This saves you from bouncing around from lender to lender to look for more competitive rates or to find out who has an appetite for a particular deal. If you want to be able to ensure that you are offering your clients variety and that you are able to look at deals of all shapes and sizes that would mean going and seeking direct accreditation with 20+ lenders.

    Another reason is that due to the volume we submit we can offer access to more competitive interest rates as well as provide you back end support to assist you in selecting the appropriate lender for particular applications.

    We also allow you the option to simply spot and refer applications to us if you don't have the capacity to write the loan yourself.

    If you would like to know anything further please don't hesitate to let me know.

    Kind Regards,

    Georgia Underwood
    0438 593 513
  • Damo of Adelaide | 11 Jan 2016, 10:18 AM Agree 0
    Hi Samson,

    Who ever you go through for Leasing, make sure you get the best deal for yourself. Pure leasing aggregators generally get a better delivery rate that allows you to get more into a deal and also compete with Dealers on Vehicles.

    There are also 3 ways to get paid on a Lease transaction and most brokers are not aware of this, if you negotiate right, you should be able to produce income from a lease as follows:

    - Unfront brokerage
    - Share of documentation fee
    - Share of Monthly Volume bonus (VBI's)

    Most aggregators generally don't let brokers know about or have access to the second and third income streams and they also sometimes take part of your upfront brokerage as well.

    and occasionally there are additional incentives during a campaign periods, where you can receive income as a fourth payment.

    My advice is shop around and get the best deal you can.

    Regards

    Damien
  • king clive | 11 Jan 2016, 10:26 AM Agree 0
    Samson

    Problem with aggregators is that they take 30% of the up front, plus document fee plus 100% of the volume bonus.

    Ensure you get 100% of the upfront. Ask Damio, Georgia exactly what they take??

    If they are getting volume bonus and doc fee you should get 100% of the upfront.
  • king clive | 11 Jan 2016, 10:31 AM Agree 0
    Hi Georgia

    Thanks for your offer however we are one of the larger asset finance specialists in Sydney with 8 brokers. I really doubt you could add any value. I was just trying to give Samson some advice as 95% of aggregators will just clip a brokers earn. Many take 30-50% which is disgraceful and in any event financiers.

    Smarter brokers are waking up to this.
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