An auto loan broker can be the key to getting the best rates and terms on a car loan. Auto loan brokers are generally independent businesses that have developed relationships with a wide variety of lenders. Bank car loans can be vastly different from one bank to another and special rates or terms may be available from a lender that you have no relationship with.

Also called a car loan broker, these professionals have collected information on interest rates and qualification guidelines from multiple banks and car loan lenders. With this information, the broker has the tools to shop for the best rates and terms for your auto loan. Often, the car dealership you are working with will have an employee that works like an auto loan broker. If not, your auto dealer may be able to refer you to an independent auto loan broker.

When you visit the independent broker or the dealership in-house broker you will need proof of employment and income as well as personal identification and the details of the car you are buying. This information will be used to determine which financing options are best for you. The independent broker is usually paid directly by the bank or other car loan lender. Some auto loan brokers may charge a fee to the buyer. Be sure to ask about fees before doing business. Many of the on-line auto dealerships also provide an auto loan broker service.