As Australians are rapidly changing their car-buying habits, with more now purchasing cars online, massive opportunities are opening for mortgage brokers, according to asset financial services provider Platform Finance.
In a statement, Platform Finance director of aggregation and strategic partnerships Damian Mantini said over the past three years, they’ve seen a spike in people doing the entire car-buying process online – from reviewing specifications and delivery to ordering the car.
Due to the increased number of people using brokers to source cars and arrange finance, Platform Finance established Fleet Avenue, a virtual car-buying service that functions as a “one-stop shop that makes it easy for brokers to provide value-added services for their clients to further build relationships”.
Fleet Avenue makes use of a unique tending system across 1,300 fleet dealers around the country.
“Buying a car is a big decision and many people prefer to do it from the comfort of their own home. Convenience is king and Fleet Avenue’s statistics show that around 40% of car buyers don’t even drive the car before they buy it,” Mantini said.
He added that brokers now play “a greater role in the purchasing process”. Based on KPMG Motor Industry Services white paper, 93% of buyers need a loan to buy a car and brokers and aggregators had financed more cars than car dealerships.
“Dealerships are struggling to get loans approved through their prime lender because of tighter credit policies, and they are being encouraged to seek alternatives such as brokers and aggregators,” Mantini said.
He added that due to those reasons and the changing habits of consumers, mortgage brokers now have new opportunities to diversify and grow their business.