If a broker arranges your car loan, the law sets out a paper trail you should receive before you sign with a lender. Knowing each document makes it easier to spot fees, see how the broker is paid, and confirm the loan was assessed against your real budget.
This guide covers the broker rules in the National Consumer Credit Protection Act 2009 (the National Credit Act), using the compilation in force from 1 July 2026. It is general information, not legal or financial advice.
Who these rules apply to
Moneysmart describes a finance broker as a go-between who arranges loans with banks and other credit providers, and says brokers must be licensed by ASIC or be an authorised representative of someone who is. The documents below come from Part 3-1 of the National Credit Act, which applies to licensees that provide credit assistance. Section 112 says that Part does not apply where the licensee is or will be the lender itself, so a bank you approach directly works under different disclosure rules.
The Act regulates consumer credit. ASIC describes the products it covers as those provided to consumers for personal, domestic or household purposes or for residential investment property. If the car is mainly for business, for example a chattel mortgage taken out under an ABN, ask the broker whether these consumer protections apply to your loan at all.
Document 1: the credit guide
What it is. A written guide to the broker and how it operates. Under section 113 it must include the licensee's name, contact details and Australian credit licence number, the fees and charges you pay the broker and how they are worked out, and the commissions (the Act calls them indirect remuneration) the broker and its staff or representatives are likely to receive from lenders, with a reasonable estimate of the amounts or range and the method used. It must also explain how to make a complaint, including contact details for the broker's internal process and the Australian Financial Complaints Authority (AFCA).
When you should get it. As soon as practicable after it becomes apparent the broker is likely to help you with a loan, so usually early in the conversation and well before any application.
What to look for.
- The lender list. If the broker deals with six or fewer lenders, the guide must name them all. If it deals with more than six, it only has to name the six it believes it does the most business with. A short list is not the whole panel, and a big panel does not mean every lender in the market.
- Two guides, not one. If you are dealing with a credit representative rather than the licensee, section 158 requires the representative to give you its own credit guide at the same time, with its credit representative number, the licensees it acts for and its own fees and commissions.
- The licence number. You can check it on ASIC's register before going further. Our guide to checking a lender or broker before you apply walks through how.
Document 2: the quote for credit assistance
What it is. A written quote for the broker's own services. Section 114 says it must describe the services covered, state the maximum amount you will pay the broker, and break that down into the broker's fee, associated charges, and any fees the broker will pay to someone else on your behalf. It must also say whether you pay anything if the loan does not go ahead.
When you should get it. Before the broker suggests a particular loan with a particular lender or helps you apply for one. You must sign and date it, or otherwise accept it, and the broker must give you a copy of the accepted quote.
What to look for.
- The "no loan" line. Know in advance whether a fee is payable if you are declined or walk away.
- The ceiling. The broker must not ask for more than the quoted maximum, and must not ask you to pay for its credit assistance before it provides that assistance (section 114). A demand for an upfront payment before any help is given is worth questioning.
- Pass-through costs. If the broker pays a third party for you, section 122 says it cannot charge you more than the amount it paid.
Document 3: the preliminary assessment
What it is. The broker's written assessment of whether the loan will be unsuitable for you. Under sections 115 to 118, within 90 days before recommending or helping you apply for a loan, the broker must make reasonable inquiries about your requirements, objectives and financial situation, take reasonable steps to verify your finances, and assess the loan as unsuitable if it is likely you could not meet the repayments, or could only do so with substantial hardship, or the loan would not meet your requirements or objectives. Section 123 prohibits the broker from helping you into a loan that is unsuitable on those tests.
When you should get it. Only if you ask. Section 120 gives you the right to a written copy for up to 7 years from the date of the credit assistance quote. If you ask within 2 years of the quote, the broker must provide it within 7 business days; after that, within 21 business days. The broker cannot charge you for the copy.
What to look for. Check that your income, expenses and debts are recorded accurately, and that the loan amount, term and features (such as a balloon payment or add-on products) match what you asked for. Run the same numbers through a car loan repayment calculator to sense check them.
Document 4: the credit proposal disclosure document
What it is. A loan-specific cost and commission statement. Section 121 says it must show the total fees and charges you will pay the broker for this loan, a reasonable estimate of the total commission the broker (or its employees, directors or credit representatives) is likely to receive for this loan and how it was worked out, an estimate of the fees you are likely to pay the lender and anyone else to apply, and, if those fees are being added to the loan, an estimate of how much credit will be left once they are paid.
When you should get it. At the same time the broker suggests a particular loan with a particular lender, or helps you apply for it.
What to look for. Compare the commission estimate with the range in the credit guide. Check the "credit left over" figure against the price of the car, because financed fees reduce what is available for the purchase while you still pay interest on them. Then compare the lender's comparison rate and total repayable, not just the headline rate; see comparison rate vs interest rate.
After this comes the lender's own loan contract. Moneysmart says a broker fee must be disclosed on the finance contract, and suggests asking who is involved and what fees are included before you sign. Our car loan fees guide lists the common charges.
Commissions and the 2018 flex ban
ASIC's ban on flex commissions in car finance began on 1 November 2018. ASIC said flex commissions were paid by lenders to car dealers and finance brokers, and the higher the interest rate, the larger the commission. Under the ban, the lender, not the car dealer, sets the interest rate. Commissions themselves still exist, which is why the estimate in the credit proposal disclosure document matters.
The best interests duty: who it covers
Section 158LA requires a broker to act in your best interests, but under section 158L that duty applies where the licensee is a "mortgage broker". Section 15B defines a mortgage broker as someone who carries on a business of arranging credit secured by mortgages over residential property, using more than one lender.
In practice that means:
- A broker who only arranges car, personal and equipment loans is generally not a mortgage broker, so the statutory best interests duty does not apply. The legal test is the responsible lending one: the loan must not be unsuitable.
- A broker who also runs a home loan business is a mortgage broker. ASIC's Regulatory Guide 273 says the duty applies each time a mortgage broker provides credit assistance, including on standalone products, so it may apply to your car loan too.
"Not unsuitable" is a lower bar than "best". A loan can pass the unsuitability test and still not be the cheapest one available, which is why comparing current car loan rates yourself is still worthwhile.
Questions to ask a car finance broker
- Can I have your credit guide, and your credit representative's guide if you are a representative?
- What is the maximum I will pay you, and do I pay anything if the loan does not proceed?
- How many lenders do you actually use, and why are you recommending this one?
- What commission will you receive on this loan, and does it vary by lender or loan amount?
- Which fees are being added to the loan, and how much will be left for the car?
- Are you a mortgage broker, and do you treat the best interests duty as applying to this loan?
- Can I have a copy of the preliminary assessment?
If a document is missing
Ask for it in writing before you sign. If you are not satisfied, use the broker's complaints process set out in its credit guide, then AFCA. If you have already signed, our guide on cancelling a car loan after signing explains what options remain at each stage. For a wider view of channels, see dealer finance vs a broker vs your bank, or start with the basics on our car loans page.
