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Supply chain shortages continue to plague new car deliveries, fuelling inflated used prices. Some lenders have tightened policies amid this, however options still exist for brokers.
It’s no surprise to see a growing number of brokers capitalising on the asset finance market. Looking just at the automotive industry, new car sales hit 1.05 million in 2021, and with 90% of new cars sold acquired under finance, the gravity of the industry is easy to see.
Furthermore, the EOFY period is the busiest time of the year within the asset finance space, culminating from dealership promotions and SME clients capitalising leading into the new financial year.
While dealership car discounts are expected to be at minimum this EOFY - on the basis of demand outstripping supply - it won’t stop dealership advertising intent, with many EOFY adverts already hitting our big [and small] screens.
The above doesn’t take into account ancillary products, such as other asset loans, personal loans and business funding - all of which play an important role in a broker’s service offering and subsequent revenue stream.
The issue
The automotive industry has been plagued by new car delays, a result of worldwide chip shortages that continue to severely impact vehicle delivery time frames. This impact has had an adverse effect on the used car market, one that has pushed prices well above average and in some instances, more expensive than their new car counterparts.
What this does is pose a problem for lenders on the premise of the risk associated with providing funds for inflated assets, something that is predicted to come to an end [above average prices] in the not so distant future.
The result? For brokers, it means finding suitable lenders for client requests can be tricky, however there are options.
The solution
Aligning with an asset finance [personal loans + business funding] services provider, allows mortgage brokers to access a larger panel of lenders, across both the consumer and commercial sectors.
What this does for a broker is increase their chances of securing finance for their respective clients which in turn, provides an exemplary experience for their customer whilst strengthening their broker-client relationships.
This is in addition to the remuneration earned from the deal(s).
Award-Winning Provider
Nodifi is Australia’s leading technology and services providers for asset finance, personal loans and business funding, enabling mortgage brokers to offer a broader range of services. A Nodifi accreditation provides brokers with access to over 40 lenders, catering for consumer and commercial borrowers.
Brokers also control how they submit each deal, whether that be through a traditional full application, a tick and flick referral or a hybrid full application. This is all backed by Nodifi’s dedicated support teams and BDMs.
Think of Nodifi as an extension of a mortgage broker’s business, the asset finance department if you will. Brokers can call Nodifi to workshop any asset finance deals, and receive guidance on suitable lenders and supporting documentation.
The takeaway - asset finance doesn’t have to be scary when an award-winning support team is in your corner.
The Benefits / Next Steps
For mortgage brokers, there are many benefits to proactively offering asset finance. Strengthened broker-client relationships, additional income, and a broader service offering are just a few standout benefits.
But ultimately, it’s almost become a necessity for the modern day mortgage broker. With more and more brokers jumping on asset finance, those who don’t could be at risk of losing clients to brokers who do - this includes future home loans...
So join the 2,000+ Nodifi community and capitalise on the lucrative asset finance market. There’s never been a better time than in the lead up to EOFY
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