What Questions Will My Car Loan Broker Ask Me?
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.
The questions a loan broker will ask
There are some key categories that your broker will ask you about. Before your broker can give you loan recommendations, they need to know some key information about who you are, what you want to buy, and how you'll repay the loan.
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?
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 we 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:
Income
- What is your income?
- How long have you been with your current employer?
Lifestyle
- 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?
Credit File
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?
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. Some questions may seem a little strange, but there will always be a valid reason for them. We need to capture as much information as possible to ensure that there is nothing missed or not understood at the time of submission.
The better we know our client, the better the deal we can get for you.
Some lenders have different policies and processes and as such, we need to tailor our questions to suit their requirements, to ensure a swift and strong approval.
What are some questions your car loan broker shouldn't ask you?
The finance market is getting tighter, and lenders want more and more information for their assessments. There is very little information, which if framed up correctly for a valid reason, should not be asked.
Some lenders will require information on your partner's income, employment status and credit history. At times this may seem a little intrusive, however, it shows the households affordability, even in the event of a single applicant on the loan.
Your broker will not need, and should never ask about sexual preference, race, or religion. Also if on Disability Support Pension they will not need to know about the reason or type of disability, these three topics would be the main ones that the lender, and also the brokers should not ask about.
How to apply for a car loan
When you're ready to apply for a car loan, a Positive car loan broker can guide you through the process. If there's ever anything that you aren't sure about, ask your broker and they'll be happy to explain.
Remember that the key to a fast car loan approval is to be honest up front. Using a broker is the easiest way to get a loan, so whether you're an experienced borrower or it's your first time lend, you'll have a better car loan experience with a broker who takes time to understand your needs.