A lender is a financial institution, usually banks, or private entities that offer loans directly to the consumer. They set their own interest rates, manage the entire lending process, and bear the risk if the borrower defaults. Lenders are essentially the source of your finance.

On the other hand, a broker acts as an intermediary between you and the lender. They don't lend money directly. Instead, they have a broad network of lenders, and they work to match you with the best lender based on your individual financial circumstances.

The key difference between a broker and a lender is in the choice they offer. When you approach a lender directly, you're limited to their products, their rates, and their lending rules, which might not always be the best fit for your situation.

On the contrary, a broker gives you access to a multitude of lenders, each with different products and rates. This access increases your chances of finding a suitable car finance deal because the broker does all the hard work of comparing different lenders on your behalf. It also decreases the likelihood of having numerous credit checks, which can negatively impact your credit score.

Brokers are regulated by the Financial Conduct Authority and offer fully transparent service. They discuss your requirements, check your affordability, and provide you with a no-obligation quote.

In conclusion, while both lenders and brokers play essential roles in the car finance industry, your choice between the two depends on your needs and circumstances. If you want more choices, a personalized service, and a potentially better deal, a broker might be the way to go.