Dealer finance or a broker: which one is actually better
The paperwork on the desk is one lender's offer, not the market. Sometimes it is still the best one in front of you.
Dealer finance is fast because it is built to move machinery, and for a straightforward purchase it can be a genuinely easy path. What it is not is a comparison. It is what one finance relationship behind the sales desk can produce that day. Knowing which channel you are in before you sign is the whole point, and there is one case where the dealer wins outright.
Who it's for
Business owners with dealer finance paperwork in hand, and buyers comparing finance before they commit to a machine.
A subsidised campaign is hard to beat, and we will say so
Manufacturers and their captive finance arms subsidise finance to clear stock, usually end-of-model-year or superseded units. The manufacturer funds the cost down and the dealer is authorised to write below what an unsubsidised lender can reach, because no outside lender is being subsidised to compete. If that is the offer in front of you, take it. We cannot manufacture a subsidised rate and we will not pretend otherwise.
A great rate can carry a structure you did not choose
Campaign pricing is usually tied to a nominated model, a set term, a minimum deposit or a prescribed balloon. The rate can be excellent while the structure is wrong for how you actually use the machine. Check what the offer is conditional on, and check whether the discount sits in the rate or in the price of the unit. A subsidised rate on a machine held at full retail is not automatically the cheaper deal.
The dealer desk is a single-lender channel
Most dealerships work with one finance provider, either a captive arm of the manufacturer or a single panel lender. The person writing your paperwork works for the dealership. That is not a criticism, it is the structure. It means one credit policy is being tested against your circumstances rather than several, and lenders differ significantly on time in business, ABN age, asset type and existing exposure.
What the finance desk cannot see
A dealer arrangement is built around the machine in front of it. It generally has no visibility of your other equipment loans, what else you plan to buy this year, or how your income is structured. Two businesses buying the identical machine can end up in different structures for that reason alone.
Comparing does not have to slow settlement
Considering more than one lender does not automatically mean a slower process. What holds deals up is incomplete documentation, not the number of lenders looked at. If you are on an auction or delivery deadline, say so up front and we will work to it.
If we cannot beat it, we will tell you
You are not obliged to move the finance to us for a review to be worth having. If the offer you already hold is the better one, that is what you should be told, and that is what we will tell you. A second read costs you nothing and occasionally saves a structure you would have been stuck with for five years.
Talk to a specialist
Get the right rate and the right structure for your next asset. No pressure to proceed, no credit-file hit to ask.
- Panel of commercial lenders
- Low-doc options for established ABNs
- Pre-approval before you buy
Work it out backwards.
Start with a repayment that keeps cash in your business and see what it finances — then we’ll line up the right rate to match.
A balloon lowers your monthly repayment and keeps cash in the business. ~30% is common; new vehicles can go to 40%.
Your rate depends on the asset, its age, your ABN and security. A guide, not a quote.
Estimate only, excluding fees and charges. Not a quote, offer, or credit assistance. Actual repayments depend on the lender’s assessment.
Common questions
Not always. Where a manufacturer is subsidising finance to move stock, the dealer's offer can be better than anything available outside that channel. In the ordinary case it comes down to the lender, the structure and your circumstances, which is exactly why comparing is worth doing.
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