Key highlights
- Dealer finance uses one funder; a broker compares many lenders
- Comparing lenders can improve your rate, term and structure
- One broker application keeps the paperwork simple and quick
- You can still buy from the dealer while financing elsewhere
Dealer finance is quick and sits right next to the sale, but it draws on a single funder, so the rate and terms are whatever that one program offers. A broker instead compares many lenders for you on a single application. At Overdrive, Simon Kendrick weighs your deal across more than 80 banks and non-bank lenders, so you can see the dealer offer against genuine alternatives before you commit.
How dealer finance actually works
When you finance through a dealer, the finance desk usually places your deal with one lender or a small in-house panel. That is genuinely convenient because the numbers are ready while you are signing for the machine. The trade-off is choice. You see a single rate and structure, and it is hard to know whether it is competitive without something to compare it against. Dealer programs can be strong on new stock or run-out models, but they are built around the dealer's arrangement, not around shopping your particular circumstances across the wider market. For a straightforward, well-priced deal that may be fine, though it is worth checking.
What a broker does differently
A broker's job is to take one picture of your situation and test it against many funders at once. Rather than accepting the first offer, Simon looks at how different lenders view your industry, the machine, your trading history and any deposit, then matches you to the ones most likely to say yes on good terms. Because more than 80 lenders sit behind a single application, you avoid lodging multiple enquiries yourself and can compare structures side by side. Rates start from around 6.55% p.a. for strong, asset-backed deals, with lower-doc, older or cheaper assets and weaker credit priced higher, all indicative and subject to lender assessment.
When each option suits you
Dealer finance can suit a simple purchase where the advertised program is sharp and you value signing everything in one visit. A broker tends to help most when your situation has any complexity, such as a newer business, a used or specialised machine, a low-doc application, or when you simply want to know the dealer number is fair. You are never locked into buying the machine from a particular seller because you financed elsewhere, and you can bring the dealer's quote to a broker to benchmark it. Comparing costs you little beyond a conversation and can change the total you pay.
Before you sign a dealer offer, it is worth seeing how it stacks up against the wider market. Simon Kendrick can compare your deal across more than 80 lenders on a single application and benchmark any dealer quote you already have. Get in touch for a free, no-obligation look at your options, and buy the machine with confidence that the finance is genuinely competitive.
Frequently Asked Questions
Can I use a broker even if I found the machine at a dealer?
Yes. Where you buy the machine and where you finance it are separate decisions. You can negotiate the purchase with the dealer and arrange the finance through a broker, who compares lenders for you. Many buyers do exactly this to keep the dealer relationship while still shopping the funding.
Is dealer finance always more expensive?
Not always. Dealer programs on new or run-out stock can be genuinely competitive. The issue is that you only see one offer, so you cannot tell if it is sharp without comparison. Getting a broker quote alongside it is a quick way to confirm the dealer number stacks up before you sign.
Does comparing lenders hurt my credit?
A broker gathers your details once and matches you to suitable lenders before lodging, rather than firing off many separate applications. This helps limit unnecessary enquiries on your file. Approach and outcomes depend on the lenders involved and your circumstances, so it is worth discussing how any application will be handled.
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