How Much Does a Car Finance Broker Cost in Australia?
Traditional car finance brokers in Australia typically charge 3-5% of your loan amount in commissions and fees. On a $40,000 car loan, that's $1,200 to $2,000. Agent Finance charges a flat $599 fee regardless of loan size—saving most Australians $600 to $3,000+ compared to a traditional broker.
Written by Rob Carlile, former senior executive at Australia's largest car finance broker.
Detailed Answer
Broker fees work differently depending on the type of broker you use:
Traditional Finance Brokers Most traditional brokers earn commission from the lender—typically 3-5% of your loan amount. While this is technically paid by the lender, it's built into your interest rate or disclosed as an "establishment fee." On a $50,000 loan, that's $1,500 to $2,500 in broker costs.
Dealer Finance Dealer finance departments often have the highest markups, sometimes adding $2,000-$4,000 to your loan cost through rate loading and establishment fees.
Agent Finance Agent Finance charges a flat $599 fee regardless of your loan size. Whether you borrow $20,000 or $150,000, you pay the same fee. There are no hidden commissions, no rate loading, and no percentage-based charges.
Real Example: - $60,000 car loan - Traditional broker (4% commission): $2,400 in fees - Agent Finance: $599 flat fee - Your savings: $1,801
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See how much you could save with Agent Finance's $599 flat fee compared to traditional broker commissions.