What a dealer finance broker should actually do for you

Rate is the easiest thing to compare and the least likely to differentiate. These are the questions that actually separate one broker from another.

1. How many lenders, and do they cover sub-prime as well as prime?
2. How fast is payout, and does it include weekends?
3. How is commission structured, and is it disclosed clearly?
4. What happens when an application is declined — is it re-placed or dropped?
5. What else comes with it? A website, a DMS, pricing data, or nothing?
6. Who trains my staff, and what does support look like after week one?

Motor finance commission has been under significant regulatory scrutiny. Discretionary commission arrangements — where the rate could be adjusted to increase commission — were banned by the FCA in January 2021.

Any broker you work with should be able to explain its commission model in plain terms, and your customers should be given clear disclosure. If that conversation is uncomfortable for a broker, that tells you something.