When buying a business car, finance is often offered right there at the dealership. It is convenient, but it is not your only option. Understanding how dealer finance compares with using a broker can help you make a more informed choice.
How does dealer finance work?
Dealer finance is arranged at the point of sale, which makes it convenient and quick when you are keen to drive away. The finance offered typically comes through the arrangements the dealership has in place, which may involve a limited set of lenders. That convenience can be valuable, though it may mean you see fewer options than exist across the wider market.
What does a finance broker do?
A finance broker works across a panel of lenders rather than a single source, comparing options on your behalf and matching your circumstances to lenders whose policies may suit. This can be particularly useful for less straightforward situations, such as newer businesses, low-doc applicants or imperfect credit. A broker handles much of the legwork, presenting options so you can compare indicative terms side by side.
Dealer or broker: which is better?
The decision often comes down to convenience versus breadth of choice. Dealer finance is immediate, while a broker offers comparison across many lenders. For a business purchase, where structure and tax treatment matter, having a wider view can be worthwhile. Whichever route you take, confirm the tax implications of the finance with your accountant or registered tax adviser.
How to compare the market for car finance
As a brokerage, Overdrive Business Vehicle Finance compares a panel of more than 80 banks and non-bank lenders through one broker, Simon Kendrick, so you can weigh dealer offers against the wider market. Request an obligation-free quote. The first check is a soft enquiry with no impact on your credit score and no obligation to proceed.
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