Need more help with car finance in Auckland or in other cities? Look no further than Instant Finance. Apply online now or get in touch with one of our local branches to learn more about our car loan options.
What is car financing?
Car financing is borrowing money to purchase a new or used car. There are multiple ways to do this. In New Zealand, you can finance a car through a car loan, hire purchase agreement, or lease. This is usually done through a dealership, a bank, or other financial providers. One of the most popular methods to finance a car is to take out a car loan, as it allows you to spread the cost of the purchase over a longer period of time.
Car finance can be used for both new and used vehicles and can be tailored to your financial situation and needs. It is possible to finance the entire cost of the vehicle with some providers. It’s important for you to understand the costs associated with car financing and the different types of loans available to make an informed decision when taking out a car loan in NZ.
Different types of car loans in NZ
There are two main types of car loans in NZ – fully secured and partially secured. A fully secured loan means the value of the vehicle registered against the loan would cover the full amount of the loan. Available security may influence how much you can borrow.
A partially secured loan is one where the value of the vehicle registered against the loan is less than the loan offered. Partially secured loans can impact the amount you are able to provide and may have higher interest rates. Therefore, it’s essential to research and compare the different types of loans available in NZ to ensure you get the best deal.
At Instant Finance, we offer both secured and unsecured personal loans with personalised interest rates to help you get behind your new set of wheels. Our team of experts will work with you to find a car loan plan tailored to you. Don’t let financial barriers stand in the way of your dream car. Get in touch with us today to discuss your needs!
Tips for finding the best way to finance a car in NZ.
With so many car loan options and lenders available, make sure you take the time to research and compare your options for car finance in Auckland or beyond. Below are some tips for getting the best car loan for you. From interest rates to pre-approvals, we’ll cover everything you need to know to find the best way to finance a car in NZ.
Tip 1: Compare interest rates.
Interest rates can vary significantly between lenders, so it’s important to look around and compare rates to find the best deal. A lower interest rate can generally save you money in the long run.
Tip 2: Check your repayment options.
Consider the repayment options available to you. For example, some lenders may offer flexible repayment options, such as making extra payments or paying off the loan early with no fee or a small charge.
Tip 3: Be aware of any additional fees.
Make sure you read the fine print and understand any additional fees or charges associated with the loan, such as application fees or early repayment fees. These can add up and affect the total cost of the loan.
Tip 4: Check your credit score.
Your credit history and other factors can affect your ability to get a loan and the interest rate you’ll get. So, check your credit score and financial history before you look for car loans in NZ. However, if you have a bad credit score, don’t worry! Unlike many other loan providers who may turn you away, we may be able to help you finance your car here at Instant Finance. Read more on how we can help you take out a personal loan to finance your car when you have a bad credit score.
Tip 5: Get pre-approval before you buy a car.
Getting a pre-approval on your loan can give you a better idea of how much you can afford to borrow and what type of loan is right for you. It can also speed up the buying process. You’ll be in the same position as a cash buyer so you can negotiate a better deal at the car dealership. If you’re looking for a second-hand car, check out Easy Driver. Easy Driver has over 100 quality used vehicles in stock, and our friendly staff with over 15 years’ experience in the industry will be sure to find the perfect car for you.
Tip 6: Look into insurance.
Found your dream car? Have you thought about your car insurance? Most lenders will require you to have car insurance as a condition of the loan. Consider the cost of insurance when budgeting for the loan. There are many different types of insurance, such as mechanical breakdown insurance, third-party insurance, and comprehensive insurance. Discuss your options with your lender to see if they meet the lender’s requirements.
Common car loan mistakes to avoid.
Now that you’re all clued up about what to look for when applying for a car loan in NZ, here are some common mistakes people can make when taking out a loan.
Here are some common mistakes to avoid:
- Not considering the total cost – It’s important you understand all costs associated with a loan, such as set-up and administration fees. You could also consider the cost of insurance, annual car service, and any add-ons you might want to buy for your car, like mud flaps, ski racks, etc.
- Choosing the wrong loan term – It’s important you understand the different loan term options available to you, and what this means for your regular repayments – generally speaking, shorter term loans will have higher regular repayments. Here at Instant Finance, you can use our handy online loan calculator (insert link) to look at different term options and what this might mean for your regular payments.
- Borrowing more than you can afford – Borrowing more money than you can afford can negatively impact your financial situation and credit history if this leads to you missing repayment dates or defaulting on the loan. Calculate how much you can pay upfront to determine how much you’ll need to borrow to get the keys to your dream car. As a responsible lender, Instant Finance will work closely with you to make sure you understand your regular repayment options and ensure these are within your means before any loan agreement is entered into. And if your circumstances do change during the loan term, our friendly team will work with you to get things back on track.
Talk to a car loan provider today!
At Instant Finance, we are proud to offer a range of car loan options to suit your financial history and needs. We can even help if your credit score and finances aren’t in good standing. So don’t hesitate to contact us online or visit us at one of our branches. We can’t wait to help you find the best car loan in NZ for you!