How brokers can go the distance for clients

With a new rate on the Liberty Drive prime car loan, brokers can get ahead of the curve, John Mohnacheff tells MPA

If Liberty Financial national sales manager John Mohnacheff were to go looking for a new car any time soon, he says “it would defi nitely have to have a bit of power under the hood”.

Just like a dream car, he says brokers who integrate car fi nance into their business have something extra they can use to woo residential borrowers.

“Many residential brokers will recognise this scenario – a customer calling to ask if you also do motor lending,” he says. “The best possible experience you can provide in this instance is to be able to say, ‘Yes, of course I can help’.”

Taking a test drive

Liberty Financial recently slashed the rate on its Liberty Drive car loan for prime consumer borrowers by 1%. This is available until 31 August, and the lender hopes the special rate will give brokers a chance to test drive Liberty’s car loan offering.

“We are serious about helping brokers connect customers with market-leading products, and this special offer gives mortgage brokers another reason to consider writing motor loans and a chance to experience how quick and simple the process is,” Mohnacheff says.

“With Liberty Drive, approvals can be processed within an hour, which helps brokers to help more customers get finance – fast.”

Liberty has offered car finance for more than 15 years, and its special rate could encourage brokers, who have until now been dipping their toes into helping customers with their car finance needs, to take a more substantial leap.

“The Liberty Drive car loan is fast, flexible, has a sharp rate and is open to younger borrowers. And it is not only new cars that this deal is applicable to: Liberty also writes loans for private sales and used vehicles.”

Getting into gear

Brokers know that helping borrowers buy a property results in a strong rapport, as personal information is shared and both parties work together towards a mutual goal. If a customer is happy with the service, and if borrowers know they can return for a car loan, isn’t that a win for both borrower and broker?

“Brokers fundamentally connect customers with finance solutions, so being able to offer more solutions is the natural evolution of the broker,” Mohnacheff says. “Whether that’s a loan for a house, a business or a vehicle, the fundamentals are still the same. Making the switch is easier than many brokers think.”

The right model

Car finance differs from traditional mortgage broking in key ways. For example, there are the obvious differences in loan size and asset type, as well as the speed at which a motor finance deal goes from initial lead to approval. “Residential brokers might be used to having a few days, or even a week, to pull together a deal. Motor lending can happen in a matter of hours, which can take a slight adjustment,” Mohnacheff says.

So how can a broker start putting car finance under the hood of their business?

While it will take some time and eff ort to get an initial start in the business, it can in the end be “incredibly rewarding”, Mohnacheff says.

“During a home loan application, a broker will ask about the customer’s assets and liabilities. This means brokers already have a detailed understanding of what additional services they may need. Taking the next step in assisting the customer with financing needs in these other areas is a natural transition.”

“Brokers fundamentally connect customers with finance solutions, so being able to off er more solutions is the natural evolution of the broker” - John Mohnacheff , Liberty Financial

Brokers should also engage with their BDMs to learn as much as they can about motor broking. Brokers who ensure all documentation on the lender’s checklist is included with the application will also find getting started much easier.

“Being diligent with documentation means the whole process is more streamlined for all parties,” Mohnacheff says.

An open road

The motor finance sector faces similar challenges to other markets, including technology, regulation and customer demands and expectations. For lenders and brokers, that means being ready to shift gears.

“At Liberty we are known for our diversified solutions, with a long history of out-of-the-box thinking and offering a range of products to both prime and custom borrowers,” Mohnacheff says. “The goal for us is to remain agile and innovative in adapting to these shifts so we can provide relevant products that support brokers and help more people.”