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How to Become a Car Finance Broker
There are no special certifications required by regulators to become an auto loan broker. Such brokers act as intermediaries between auto lenders and borrowers. Brokers often work for car dealerships and other similar businesses to screen loan applicants and to communicate with lenders. Brokers don't actually create the loans. They merely act as intermediaries. The better job the broker performs at evaluating borrowers, the more likely they'll be able to maintain good relations with auto loan originators.
Learn about the consumer credit system in the United States before you consider becoming an auto loan broker. As an auto loan broker, you will be expected to evaluate financial statements of consumers and businesses along with looking at credit ratings to determine what kinds of loans a consumer may be eligible for. You can take courses in commercial banking and finance at any college. A degree in finance or economics may assist you in finding employment as an auto loan broker at a dealership or other auto business. Basic people skills are also important. Auto loan brokers must be skilled at sales and customer service to guide customers through the process of applying for an auto loan.
Find employment as an auto loan broker or start your own business. Finding employment when you're starting out is preferable unless you have existing personal contacts in the auto industry. It's challenging to build up the necessary relationships with auto lenders unless you already have direct work experience in the industry. As an auto loan broker, you'll be responsible for providing loan applications to people interested in auto financing, evaluating them and passing them on to the lenders.
Work as an auto loan broker, marketing to customers interested in borrowing money to finance a car purchase and auto lenders interested in financing. It's generally a sensible idea to focus on one car manufacturer and one sector of borrowers. For example, an auto loan broker focusing on connecting bad credit borrowers looking for Honda vehicles will find it easier to build their business than a generalist loan broker. You'll be tasked with finding the best available loans for borrowers given their credit rating and overall finances.
Tip
Auto loan brokers need to learn how to evaluate personal financial statements and credit ratings to be successful. If your loans have a high performance rate, lenders and car dealers are more likely to give you repeat business. The broader the network of your relationships with lenders, the more rate comparison shopping you'll be able to do for your borrowers. Lenders visit auto loan brokers because they want access to more competitive rates than might be offered through a conventional dealership.
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John Hewitt began freelancing in 2008, writing about subjects ranging from music to stock trading, the energy industry and business. His ghostwritten work has appeared all over the Web. He attended New York University, pursuing a bachelor's degree in history.