How to beat car loan brokers with aggregation

As a car loan lender or broker, you’re likely on the lookout for anything and everything that can give you an advantage over the competition. Maybe you have bolted-on insurance broking; fleet buying options; or using all your spare time to add more options to your lending panel to give your customers more choice and ultimately, cheaper deals.

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As a broker, you may have heard of lender aggregation. What is aggregation, and how does it help your car loan brokerage now and into the future?

What is car loan aggregation?

Aggregation is essentially your “virtual” car loan lending panel, provided by a larger entity known as an aggregator. You’ll gain immediate access to their entire lending panel; big banks, credit unions, non-conforming lenders, and even insurance companies are among the institutions you can access using an aggregator. You can offer your clients the same selection as brokers who have been in business for years owing to your aggregator.

As a bonus, aggregation services frequently provide professional development and compliance training as well as emerging technologies and critical business intelligence.

Access to the future of motoring finance – EV finance

The Federal Government is currently investing in discounted electric vehicle (EV) finance in an agreement between the Clean Energy Finance Corporation (CEFC) and Taurus Motor Finance. An aggregator will likely be first in line to add the CEFC or Taurus as part of their lending panel; which any firm that uses aggregation can take advantage of. As more and more Australians look to cut costs and reduce their carbon emissions, offering discounted EV finance will become a definite advantage.

Intelligence is key

According to leading asset finance aggregator Optimise Finance, annual new vehicle sales passed one million units in December in 2022, a 3% year on year increase. Aggregators such as Optimise draw upon the latest business intelligence including car sales figures and trends, which can assist with your marketing and outreach. This can all be accessed using dashboards or other data links.

Streamlined customer experience

Do you have dozens of triggers and conditional automations for emails set up to remind customers to submit documents? Aggregation can dispense with costly marketing automations and conduct compliance or credit checks using a suite of services that would normally be out of reach of smaller car loan brokers. Your customers see a seamless process which leads to greater satisfaction, better reviews, and more referrals.

Branching out into business finance

If you’ve been reluctant to chase the business or fleet finance dollar – which can be quite lucrative – aggregation can make it happen. You’ll be able to access a more rounded suite of business finance specialists that deal in chattel mortgages or even finance leasing or novated leasing.

You can expand your offering with a minimum of effort and fuss by signing up with an aggregator. You gain multiple points of enhancement and ultimately, better deals and service than what your competition can hope to provide.

About Rob Fraser 2500 Articles
Rob Fraser – General dogsbody & Director Rob is the founder of the business. He constantly mutters something about way too many red wines one evening being to blame. Often known for taking the 4WD in the driveway over the sports car, he has travelled pretty much everywhere in Australia and when he is bored goes for a drive. He first learned to drive on the farm in a left hand drive WW11 Jeep when he was 11, and was hooked on 4WDriving way back then. In addition to 4WD he is an avid motoring enthusiast and has maintained a strong interest in the industry ever since his teens. He has owned way too many cars in his time as well. Having previously lived at the top of corporate life he retired in 2000 and hasn’t put a suit and tie on since. Cars are his passion so why not have a business doing what you love he figures. He has towed either a caravan or camper trailer to most parts of Australia, has run guided tours for camper trailers’ and instructed drivers in off road towing.