Compare the best car finance NZ has to offer
Empowering you to make sound financial decisions.
We’ll help you secure the best car finance agreement for your financial situation.
What we do
We help educate kiwis looking for car finance in New Zealand.
Whether you are trying to find the lowest car finance interest rate, who the best car finance companies in NZ are, or simply trying to educate yourself on how to apply for car finance in new Zealand we can help you make an informed decision on everything car finance.
3 things to consider when looking for the best car finance deals in New Zealand
Your car finance budget
Know your budget! Sounds silly, but too many people walk away from their local car dealership with a car finance solution that is beyond their income means. Write up a budget and see what you can afford in weekly/monthly repayments.
If you had an unexpected bill could you still make your car repayment? What will car insurance cost for the type of car you are wanting?
Try our free car finance calculator to see what your car repayments would be.
Car finance interest rates and fees in NZ
Your car finance interest rate will determine how much money you will pay back on top of your loan amount. This isn’t the only fee to be aware of when looking for the best car finance deal however.
Before you signup for car finance make sure you know what the establishment fee is, late payment fee and any early repayment fees.
And remember, add-ons add up! Income protection, guaranteed asset protection etc can all raise your repayments. Make sure you take these into consideration when signing up for car finance.
Looking for more advice? Check out our top tips when buying and financing a car.
A car finance deposit will save you money
Save some cash! Try and save before you apply for car finance. The more you can save the less you will need to borrow and your interest rate will likely be lower. A desposit is proof you can save money and have disposable income to meet your car finance repayment obligations.
To see the difference a deposit makes to your repayments, try our free car finance calculator and add in a deposit amount. Then compare the repayments with no deposit.
See if you qualify for an Interest Rate of 5.99%
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Have questions about Car Finance? Here’s everything you need to know about Car Finance in New Zealand
What car loan interest rates are available in New Zealand?
Car loan interest rates in New Zealand range from 5.95% up to 29.95%
The car loan interest rate you receive will vary depending on your situation. How much income you earn, your weekly expenses, if you have a deposit, your credit history and more.
Interest rates can also vary if the loan is secured or unsecured.
How does car financing work?
If you don’t have the cash to purchase a car you want outright, you can buy your car using finance. This means there is a credit agreement between you and a lender. Over a certain period of time, you will pay the financed amount back to the lender with interest.
So your $15,000 car may cost you $17,424 over 36 months at an interest rate of 10%. This gives you monthly repayments of $484.
This is the basic explanation of a car finance agreement. There can be additional factors involved, which are covered below and also on our top tips when buying and financing a car page.
Finding the best car loan interest rate in NZ
You can easily compare car finance interest rates in New Zealand using our car finance calculator.
This will give you a good visual on what your weekly/monthly repayments will be and what your total repayment will be for different interest rates.
How will you know what your personal car finance interest rate will be though? Well, there are several varying factors that come into play when lenders assess your application and decide on your interest rate. Unfortunately, you won’t know what your rate is until you apply.
Lenders will look at your credit history, income, expenses/debts if you have a deposit, the loan amount and loan term.
So as a general rule, the better your credit history and the more you earn (minus expenses) the lower your car finance interest rate will be.
Ways you can reduce your monthly repayments
There are ways you can reduce your monthly car finance payments and secure a better rate from the lender.
Before you apply for finance you should make sure any debts are paid off and you have no existing bad debts. If you can show you have the ability to complete debt payments you’ll be less of a risk to the lender.
If you have the time, you can also build your credit history by purchasing one or two low-cost goods and paying them off successfully. This will show you can commit and complete the finance agreement.
Save for a deposit. The larger your deposit the less you need to pay off and the better you will look to the lender. A larger deposit equals less risk and your interest rate will be better.
Shop around for your car finance. Try 2-3 different lenders and see what rates they offer you for car finance. Remember to make sure you know what fees are additional to your rate and include them with your total costs. Low-interest rate car finance isn’t always the best option in the long term.
Car finance with bad credit
There are many lenders throughout NZ who will approve car finance if you have bad credit. You are best to shop around and get quotes from a few lenders so you can try secure the best car finance interest rate you can for someone who has bad credit.
In general, bad credit car finance in New Zealand always has a higher interest rate compared to standard finance. Any one considering car finance with bad credit should make sure they know exactly what they are getting into because they don’t want to end up in a worse financial situation.
You can read our bad credit car finance information page here for more information.
No credit check car loan
If you have bad credit or if you have no credit history at all you may be looking for a no credit check car loan. A no credit check car loan usually comes with restrictions, high fees and high interest rates and you should take your time in evaluating one if you do find a lender who will offer you one.
A no credit check car loan is probably not the best idea if you have had struggles in the past financially and have a bad credit rating. You can read our no credit check car loan information page here for more information.
What you need when applying for car finance
We’ll list the common requirements for lenders when you apply for car finance in New Zealand. Lenders may require additional information depending on your situation and information provided.
For most lenders you’ll need:
- Drivers license
- Proof of Income/Income status
- Property status (rent/own/board etc)
- How long at your current address
- Residential status
- Number of dependants
- Employment status
- Marital status
- 3 months of bank statements
New Zealand Car Finance Providers
Get car finance quotes from multiple lenders and compare your interest rates. Your quotes from these lenders won’t affect your credit score so shop around and find the best rate for your financial situation