Loan Type – Vehicle Loans

Unsecured Vehicle Loans

Posted on January 19, 2019November 2, 2019 by admin

Unsecured Vehicle Loans in New Zealand

Unsecured Vehicle Loans

When shopping for a car loan, it is good to do in-depth research on different products and offers in the market. Doing prior research enables you to make sound and informed decisions. Unlike secured vehicle loans, unsecured vehicle loans in New Zealand are not easy to acquire, but they are available.
An unsecured vehicle loan is a form of car loan that is not backed by any assets as collateral. The Lender gives the loan based on the borrower’s credit history, and ability to repay the loan.

Features Of Unsecured Vehicle Loans:

No collateral needed.
Lower borrowing limits.
High-interest rates.
Hard to obtain.
Mostly short loan term.
Might need a guarantor.
Mostly fixed interest rates.

Requirements For Acquiring Unsecured Vehicle Loans

Applicant must be 18 years and above.
Should have a stable income and reasonable assets.
Must be a New Zealand resident
Should hold a valid driver’s license; either restricted or full.

Process Of Acquiring Unsecured Vehicle Loans In New Zealand

Unsecured Vehicle Loans In New Zealand

Visit your preferred lender and fill out the application form. The lender will require your credit report, payment stubs for the past few months, identification document, e.g., passport, physical address, contact details, etc. these will determine your eligibility for unsecured vehicle loans.

Due to the high risk involved, the lender has to do a lot of research on your financial situation before making a decision. If they are satisfied, they will then approve your loan application.
Upon approval, the lender will deposit the money to your account.
After the cash receipt, you will visit the dealer of your choice and make the purchase. Having the cash at hand will enable you to negotiate for the best deal possible.

Advantages Of Unsecured Vehicle Loans In New Zealand

In case you default, the lender cannot repossess your vehicle. The only way the lender gets hold of the car is through the court which can take months before they can regain their ownership.
With an excellent credit score, you can negotiate for low interest.
You can pick any vehicle you want without restrictions.
Some lenders offer re-draw facilities; this is where you pay more than you are supposed to, but in case of an emergency, the lender gives you the extra cash (surplus).
You get to decide on the type of insurance to take for the vehicle; this might save you money.
The fixed interest rate enables the borrower to plan funds as there are no uncertainties on the repayment amounts.

Disadvantages Of Unsecured Vehicle Loans.

Approval is unpredictable due to the risk involved.
The lender charges high-interest rates due to the high risk involved.
With a low credit score, it’s almost impossible to get an unsecured vehicle loan
Defaulting can tint your credit report which can be hard to obtain any credit in future.
Some lenders have penalties for an early exit. It is good to know your lender’s terms on early repayment to avoid such extra charges.
Lenders limit borrowing amount; which might not be enough to buy the vehicle you want.

When to choose unsecured vehicle loan

If your credit score is excellent: having a high credit score gives you an upper hand to negotiate for lower interest rates. Probably same as the rate for a secured vehicle loan. So you would have nothing to lose.
If you want freedom of choice: unlike the secured car loans which are restrictive on the car model, age, and mileage, unsecured vehicle loans give you the freedom to purchase any vehicle of your choice.
When you want a fast and uncomplicated process: the steps and paperwork for this loan are few. The lender will process your credit faster and disburse the money to your account even before you fully decide on the car you are buying.
When you want to reduce the chances of losing your vehicle: in case your financial status hits the rocks due to a sudden job loss or medical situation, the lender cannot take the car.
Depending on your financial obligations and capability, unsecured vehicle loans can be a great choice. However, you will end up paying a lot of money as interest due to the high rates charged.

Loan Type, Type of Loan, Vehicle Loans

Secured Vehicle Loan

Posted on January 19, 2019November 2, 2019 by admin

SECURED VEHICLE LOAN

Secured Vehicle Loan

Secured vehicle loans in New Zealand are the most common forms of car loans offered by loan providers. For the lender, this is a risk-free credit facility as they hold a lien against the vehicle. If the debtor fails to pay, the lender has a legal right to repossess and resell the car to recover their funds.
A secured vehicle loan is a form of credit that requires collateral; in this case, the vehicle you are buying.
The amount of money given as vehicle loan depends on the vehicle value. However, if the car cost is unclear, the lender provides a preapproval indicating the amount they are willing to lend.

Advantages Of Secured Vehicle Loans In New Zealand:

Low-interest rates: since the risk involved with a secured vehicle loan is minimal; the lender offers a lower interest rate compared to an unsecured vehicle loan.
A client with bad credit can obtain this loan: the risk involved for the lender is low, as, in case of default, they can recover the vehicle and resell to recoup their money. However, the interest rate charged for this is likely to be high.
Fixed interest rates: the repayment amount you pay is constant throughout the loan term; there are no uncertainties attached to a secured vehicle loan with a fixed rate.
Down payment: some lenders do not require a deposit for secured vehicle loans in New Zealand.
Clients with unstable and unpredictable incomes can get financed, e.g. self-employed: since the risk involved in secured car loan is low, the lenders can finance such clients.

Disadvantages Of Secured Vehicle Loans In New Zealand:

Vehicle repossession: in case you default the loan, the lender can legally repossess your car and resell it to recover their losses.
Limited car age and model: lenders limit the secured car loans to new vehicles and used vehicles of a certain age and model. The lender targets to finance vehicles they can easily resell to recover their funds quickly.
Fixed rates are not flexible: in case your finances get strained, some lenders do not revise the loan tenure and the monthly repayments. Meeting such obligations can be impossible for you to honour.
Early repayment penalties: some lenders charge an early-exit fee to someone who repays the secured car loan before the loan term ends. These charges end up costing you extra money.

Requirements For Acquiring Secured Vehicle Loans:

Secured Vehicle Loan Application

Even though loan providers have different terms and regulations on secured car loans, some elements cut across all lenders.
The applicant:
Must be 18 years and above.
Should have a proof for a stable income.
Should hold a full or restricted drivers licence
Must be a permanent resident in NZ.
Documents Required For Secured Vehicle Loans In New Zealand:
Identification documents: a valid passport or driver’s license
Proof of residence: utility bill in your name.
Proof of income: use your latest pay stubs for the last couple of months.

Factors To Consider When Comparing Secured Vehicle Loans In New Zealand:

Secured Loan Terms

Interest rates: Lenders offer different rates for secured Car loans. Use an online vehicle loan calculator to determine the total amount to be paid as interest. The lender whose interest amount is lowest is the best option.
Fees: compare the set-up fees among the lenders. Some lenders charge more expensive than others. Choose the one with the best offer.
Penalties: some lenders penalize a client who settles the loan before the term is over while others don’t. These penalties can cost you a lot of money; it is advisable to evade such contracts.
Repossession terms: some Lenders have strict conditions for defaulting loans. It is good to know the lender’s terms for repossession before signing any documents.
Loan tenure: some lenders offer fixed term for secured vehicle loans. Be sure to choose one that suits your budget. Also, choose a lender who is open to revising your loan term and monthly payments, in case any financial situation arises, this flexibility will come in handy.

Secured Vehicle loan in New Zealand

Acquiring secured vehicle loans in New Zealand is not complicated. With these ideas, you are equipped to make a sound decision regarding your next auto loan. Good luck!

Loan Type, Vehicle Loans

Used Vehicle Loans

Posted on January 19, 2019November 2, 2019 by admin

USED VEHICLE LOANS IN NEW ZEALAND

Vehicle loans

When you consider buying a vehicle, the first decision is whether to buy a new or used car. This decision impacts the amount of money you borrow, the interest rates, loan term etc. In case you settle on buying a used vehicle, you are in the right place!

Used vehicle loans

Used vehicle loans are credits offered by a bank, credit unions or car dealerships to individuals seeking to buy used vehicles. Most lenders limit the year of manufacture, mileage and loan terms for used cars to finance.
Used vehicle loans in New Zealand are mostly sort after by people whose budget is limited and cannot afford to buy a new car.

Factors That Affect Monthly Payments For Used Vehicle Loans

Factors That Affect Used Vehicle Loans

Car age: lenders tend to give shorter terms for used vehicle loans. The shorter the loan term, the higher your monthly payments.
Mileage: lenders offer short-term credit for used vehicles with high mileage increasing the mounts for monthly payments.
Down payment: having a substantial amount of cash for down payment reduces the loan amount hence lowering your monthly payments.
Credit rating: an applicant with a good credit score gets lower interest rates; lowering monthly payments.If your score is low, getting a newer car would be ideal as the lender will give a longer term for the loan; reducing the monthly payments.

How To Apply For Used Vehicle Loans In New Zealand

Assess your budget and establish how much you can afford to pay monthly for the vehicle. Settle on an amount that does not overstretch your finances. It is wise to consider costs such as insurance and maintenance of the car.
Use an online car loan calculator to estimate the budget for the used vehicle. Check for a term whose monthly payments fit in your budget.
Decide on the amount you need to borrow. Evaluate how much money you intend to pay as down payment for the car. It will significantly reduce the amount of loan.
Asses your credit score; the higher your score, the better your chances to get financed for used vehicle auto loans.
Shop for a preferred lender, visit banks, credit unions and finance companies to determine one that gives you the best deal for the used vehicle loans. Consider things like interest rates, loan term etc.

Applying for used vehicle Loans

Used vehicle Loan Application

Fill out loan application forms for used vehicle auto loans. The details required include your name, proof of income, physical address, contact information etc. If you qualify, the used vehicle auto loan will be pre-approved.
Visit a car dealership and shop for a vehicle. The car cost should not exceed the pre-approved amount. When shopping for the car, factor in the Lender’s limitation on mileage and age. With the pre-approval, you can negotiate a reasonable price for the vehicle. Do not shy away from negotiating with the dealer for the best price.
Sign loan paperwork to finalise the used car loan process. Before signing the final documents, ensure that there are no additional or hidden costs, proofread the documents to ensure that you understand the contract. If you are satisfied, sign the paperwork and get your newly acquired vehicle.

Factors To Consider When Acquiring Used Vehicle Loans In New Zealand

Age of the vehicle; aim to purchase a newer car as you will be able to bargain for better rates and loan tenure.
Choose a vehicle with a mileage not exceeding the lender’s limit.
Negotiate for a low-interest rate.
Target to repay the used vehicle auto loans within the shortest time possible to avoid upside down; owing more than the car is worth.
Look at the maintenance history of the car before you buy. Get a mechanic to inspect the vehicle to check for rust, oil leaks, engine condition, etc.
Get a vehicle with a good resell value.

Disadvantages Of Used Vehicle Loans In New Zealand

High-interest rates
Limited loan term
High depreciation rate

Used Vehicle Loans New Zealand

On paper, used vehicle auto loans may seem cheap. However, used vehicles are less reliable and attract unforeseen costs for repairs; making them expensive in the long run. Considering the insights shared above, you are well equipped to decide whether to buy a new or used vehicle.

Loan Type, New Vehicles, Vehicle Loans

New Vehicle Loans

Posted on January 19, 2019November 2, 2019 by admin

NEW VEHICLE LOANS IN NEW ZEALAND

New Vehicle Loans

Driving a brand new vehicle can be very exciting. You get to enjoy the latest technology and specs. However, very few people can afford to buy a brand new vehicle with cash.

New online loans enable you to acquire a car you would otherwise not have managed to obtain. There are several things to consider before taking new vehicle loans. Let’s this break these down, shall we?
New vehicle loans are forms of credits sort by individuals from banks, credit unions or car dealers to buy a brand new car.

New Vehicle Loan Application

Know your credit rating: having a high credit score will get you fast approvals and lower interests for new vehicle loans in New Zealand.
Evaluate your financial status: determine how much you can afford to pay monthly for a new vehicle. Consider other car costs like automobile registration, insurance premiums, fuel costs, etc.

Use an online vehicle loan calculator to establish how much money you intend to borrow. You will attain this figure by keying in your preferred monthly payments, interest rate and the number of months you plan to repay the auto loan. Having money for a down payment will reduce the amount of money you borrow; hence lowering the monthly payments.

New Vehicle Loan Lenders

Visit a few lenders to compare their offers on new vehicle loans regarding rates, tenure and general terms for the loans. Do not forget to check the online loans too. New vehicle loans from dealers offer convenience as everything is done by the dealers, saving you time and frustrations that come with loan applications. However, new vehicle loans from dealers are likely to charge higher interest rates.

It is good to evaluate all the possibilities before reaching a decision.
Seek a preapproval for the loan: if you qualify, the lender will give you a preapproval for the new vehicle loan. The preapproval entails the amount of money you are eligible, the loan term, type of vehicle, etc.

Visit different car dealers to negotiate the cost of the vehicle. Use the preapproval to negotiate with the dealers, this way, you will have the upper hand in the negotiation.
Once that is done, finalise on the paperwork and sign the new vehicle loan contract. The lender pays the car dealer directly. After which you are ready to drive off your newly acquired vehicle.

Required Documents For New Vehicle Loans In New Zealand

New Vehicle Loan Requirements

Identification documents: you are required to submit either a valid passport or drivers licence.
Proof of income: for salaried clients avail your payment stubs; sometimes lenders call the company to confirm if the stubs authenticity. For self-employed clients, submit contract documents and business registration papers.
Proof of physical address; present a utility bill in your name.
Bank statements; some lenders require statements for three months to determine your financial status.
A fully completed application form; ensure that you provide all the information in the application form accurately.

Advantages and Disadvantages Of Acquiring New Vehicle Loans In New Zealand

Advantages Of Acquiring New Vehicle Loans In New Zealand

A new vehicle has not experienced any wear and tear. Everything is in perfect working condition.
You get to enjoy the most recent technologies. The car technology is evolving; new vehicles have the latest safety, electronic and mechanical inventions.
Full warranty: a new vehicle has 2-3 years of warranty. In case the car develops mechanical problems, the warranty covers the cost. You will not bear unexpected costs at least for the first few years.
Better interest rates on new vehicle loans in New Zealand for individuals with good credit scores.
New vehicles have an efficient fuel consumption
Some manufacturers allow clients to personalise interiors and exterior colours for the brand new cars.
With the advanced technology, new vehicles are environmentally friendly.

Disadvantages Of New Vehicle Loans In New Zealand

Initial cost is very high; not many people can afford to buy brand new vehicles.
Insurance cost is high; insurance premiums are costly.
New vehicles incur costs for registration.

New Vehicle Loans

New vehicles have many exciting features and are very reliable. Depending on your budget and lifestyle needs, you have the freedom to choose the model that suits you best. New vehicle loans in New Zealand offer opportunities for people to enjoy the perks that come with new cars. Do not be left out!

Bad Credit Loans, Loan Type, Vehicle Loan Help, Vehicle Loans

Bad Credit Vehicle Loans

Posted on January 19, 2019November 2, 2019 by admin

VEHICLE LOANS FOR BAD CREDIT

Vehicle loans with bad credit

Auto loans are very accessible in New Zealand, especially if you have an excellent credit score rating. What if your credit score is low? You are probably wondering if you can still access an auto loan. The answer is, yes you can. Having a bad credit score is not always an indication of an inability to acquire an auto loan or any credit facility for that matter.
Vehicle loans with bad credit are facilities offered to individuals with low credit scoring. There are lenders in New Zealand who are willing to provide vehicle loans for bad credit. You only need to find the one that favours your current situation.

How Vehicle Loans For Bad Credit Work:

Lenders look at your credit history, job history, and monthly income checking for consistency; to evaluate your ability to repay their money. After which they decide whether to take the risk of funding your vehicle loan bad credit or not.

Why Do People Need A Vehicle Loan For Bad Credit?

Maybe you need a car to drop your kids to school or go to work, but your credit score rating is low. It can be affected by various circumstances such as divorce, bankruptcy, medical situation, job loss, e.t.c. However, an individual should not shy away from seeking a vehicle loan for bad credit.

Things To Consider When Applying For Bad Credit Loans In New Zealand

Check your credit rating

Check your credit rating: this is a score reflecting your debt repayment history. Credit rating agencies are specialised to issue credit rating reports.

A few examples here in New Zealand include Dun and Bradstreet, Centrix and Equifax. This rating gives the lender an estimated probability of you defaulting the loan. Reviewing your credit report can play out in your favor especially if your credit score is on the borderline.

In case of discrepancies, have the corrections made and re-establish your credit worth.

Co-sign

Co-sign: Get a trusted person with a good credit score to co-sign with you. It can be your spouse or a close family member. Your co-signer will be accepting the responsibility to be tied to your loan, giving your lender a sense of security.

Start small

Start small: you can buy a reasonable car with a bad credit loan in New Zealand. The secret is to start small and build yourself as you re-establish your credit worth. With your available cash and obtained credit, find a vehicle that meets your basic needs. Consider buying a used car with a good maintenance record and good resell value.

Disadvantages Of Acquiring A Vehicle Loan For Bad Credit

Disadvantage of Bad credit vehicle loans

High-interest rate: the lower your beacon score, the higher the interest rate. Lenders charge high-interest rates as the risk attached to vehicle loans for bad credit is high.
Frustrations: the process of getting approved for a bad credit vehicle loans can be very frustrating to the applicant.
High risk of being conned: some dealers prey on the desperation of applicants and charge them exorbitantly.

Tips For Getting A Good Auto Deal With Bad Credit Vehicle Loans In New Zealand

• Be practical with your expectations: the process of qualifying bad credit loan NZ is a nightmare especially for someone who wants large sums of money regardless of their credit rating. So keep your expectations low to avoid frustrations.

• Have a reasonable down payment amount: having at least 10% or more of the total car value enables you to get a fair price for the car. Save until you have enough money. The more the money you have, the better your negotiating power.

• Get your loan preapproved first before visiting any dealerships: having this will give you an upper hand. You will be more in control of the negotiation process. Negotiating enables you to get a better price and interest rates for the car.

• Target to repay the loan over the shortest period possible. Short-term tenure will reduce the interest rate and also the overall amount paid by the end of the loan term.

Vehicle loan with bad credit

Having a bad credit rating is not the end of the world. You can still manage to get bad credit loan NZ with the insights shared above. Be on the lookout for the predatory dealerships that seek to exploit individuals with bad credit. Before you sign any document, ensure that there are no extra fees. It would be so unfortunate to pay so much money than you should have.