Difference between leasing through a Broker vs Dealerships
A car lease broker acts as a ‘middleman’ between you, the dealership and the lender. It’s their job to try and get you the funding you need for the vehicle you want. Since they work independently from manufacturers, they aren’t tied to any specific lender, meaning they usually have a much wider network of lenders to work from and can often get better deals. However, there are advantages and disadvantages to using brokers.
Pros of Brokers:
- You can usually get cheaper rates.
- Brokers depend on income from successful referrals, they will do all the hard work for you and try everything possible to get you what you need.
- If you have bad credit, brokers have a better chance of finding you a finance deal.
Cons of Brokers:
- Depending on the broker, they may charge admin fees or other hidden extra costs.
- Brokers do not have a physical presence, so you cannot go and see whatever car you are thinking about leasing.
- The fewer providers a broker works with, the fewer cars will be available. Although, brokers who work with a lot of providers might take a while in sifting through possibly thousands of available deals to find you the best options. It will probably be worth the wait, though!
In contrast, a car lease through a dealer is a direct source of cars that are tied to a certain type of manufacturer, with specific premises where all stock is held. You can actually go in and see the car you want to lease and test drive it before deciding on whether or not it’s right for you. This is a very good early advantage for dealers, as it is something brokers cannot offer.
Pros of Dealers:
- You can go see the car, even if you are not actually planning on leasing a car from a dealer, it is always worth going to one to check the car out. You do not want to get saddled with a car you do not like.
- Dealerships also allow you to speak to sales staff face-to-face. This means you can ask any questions you may have about the vehicle itself.
- They’re perfect if you already know what you’re looking for.
Cons of Dealers:
- Obviously, dealers will only be able to lease you a car from the manufacturer they sell so there is far less variety.
- Dealerships are also likely to be more biased in the advice they give. A forecourt salesperson may be focussing more on their commission cheque rather than providing the best advice.
- They’re not suitable for people who have bad credit.
Ready to make your decision?