1 Month at a New Job. Approved for $23k!
Did you know that some of the most competitive auto lenders in Australia don’t have shop fronts, don’t run television ads, and won’t even accept an application from you?
There is an entire tier of broker-only lenders that are completely closed off to the general public.
This week’s case study perfectly highlights why having a broker in your corner can get you more access, which is sometimes the only way to get you approved.
Scenario
On a Sunday afternoon, a young registered nurse from Newcastle reached out to us looking to finance a 2021 Mazda CX-3 priced at just over $23k.
As we have seen in past editions, younger borrowers can have a tougher time ticking all the required boxes to get a deal over the line.
However, her profile was strong, with a credit score around the 750 mark and no higher-risk credit enquiries on record.
So what could be the problem?
The Roadblocks
She had just graduated from university and had only been working in her new full-time nursing role for one month.
Prior to this, she was just working odd casual jobs while studying.
So, on paper, she would not qualify at a lot of lenders, even though her current job is as reliable as they come.
Traditional lenders may require 3 to 6 months of continuous full-time employment before they will consider an application.
But the Gusto team knows where the exceptions to this rule are.
The Gusto Strategy
We took her application to a specialist lender on our panel who deals exclusively with finance brokers.
Because they don’t have to deal with the general public, their credit policies are highly specialised and much more flexible when a loan makes sense.
Registered nurses are always in demand, so as long as we could prove consistent earnings, the lender was happy to make an exception.
And we secured the approval in no time.
The Result
The team started their assessment Monday morning, and the customer was driving away in her new Mazda CX-3 by Tuesday afternoon.
All with a competitive rate around the 11% mark, which is a strong outcome for a younger borrower!
The Takeaway
When you apply for a loan on your own, you are limited to retail lenders that are far less transparent with you than they can be with a broker.
Sometimes you could be declined without a human even looking at your application.
Meanwhile, the team at Gusto often speaks directly to lenders to ensure they notice the details that matter.
In this case, it was a lender that customers (and many dealerships) would never be able to access, even though it was the best option for her circumstances.