Dealer vs Broker Equipment Finance Rates

Key highlights

• Dealer finance is convenient but tied to limited lenders
• A broker compares many funders across the market
• Always benchmark the dealer offer against the market before signing
• Comparing costs nothing and can reveal sharper pricing

How dealer finance works

When you buy from a dealer, finance is often offered right there as part of the sale. It is genuinely convenient, keeping the purchase and funding in one place, and the paperwork can be quick. But dealers typically have arrangements with only one or two finance providers, so the rate you are shown reflects those relationships rather than the whole market. Sometimes a dealer runs a sharp promotional rate to move stock, which can be excellent. Other times the finance is simply the provider they are set up with, and the price is average at best without you having any way to tell.

How a broker works differently

A broker is not tied to the sale of a particular machine, so there is no incentive to steer you toward one lender. Instead, a broker reviews your deal and compares many funders to find pricing and terms that suit you. That independence is the core difference. Where the dealer shows one option, a broker shows where your application genuinely fits best across the market. For a strong, asset-backed deal that can mean rates from around 6.55% p.a., always indicative and subject to lender assessment, with the aim of the sharpest realistic outcome for your circumstances.

Convenience versus comparison

The honest trade-off is convenience against comparison. Dealer finance saves a step at the point of sale, which is appealing when you want the machine now. A broker adds a short comparison step but can save real money over a multi-year term, and often works just as quickly behind the scenes. The good news is you do not have to choose blindly. You can accept a machine and still take the dealer's finance offer away to benchmark it. If it holds up, take it. If a broker beats it, you are better off, and you have lost nothing but a little time.

What to check in a dealer offer

Before signing dealer finance, look past the monthly repayment. Check the rate, the term, any balloon or residual, all fees, and whether the low headline rate depends on conditions. A long term or a large balloon can make repayments look small while the total cost climbs. Ask what the total amount payable is over the full term, not just the monthly figure. Armed with those details, a broker can compare the offer like for like against other lenders. Comparing genuine total cost, rather than headline rate alone, is what reveals whether the dealer deal is actually good value.

Getting the best of both

You do not have to pick a side upfront. Many buyers agree the machine with the dealer, then have a broker check the finance against the market before committing. That way you get the convenience of the purchase and the confidence of a benchmark. Overdrive can turn a comparison around quickly on a single application, so the benchmark step need not slow the purchase down. Same-day pre-approval and 24-48 hour settlement may be available for eligible applicants, so comparing rarely holds up the deal. All figures remain indicative and subject to lender assessment until a lender formally approves your specific application.

Dealer finance can be a good deal, but tied to one or two lenders it is impossible to know without comparing. The safe move is to benchmark it, which costs nothing and can save plenty. Overdrive's dedicated broker, Simon Kendrick, compares 80+ banks and non-bank lenders on one application. Get a free quote, check it against the dealer's offer, and sign whichever genuinely comes out ahead for your business.