Vehicle Loan Help – Vehicle Loans

Vehicle Loans FAQ

Posted on January 26, 2019November 2, 2019 by admin

FREQUENTLY ASKED QUESTIONS (FAQs) ON VEHICLE LOANS

What is a vehicle loan?

A vehicle loan is a form of credit given to an individual for the sole purpose of purchasing an automobile. Vehicle loans are offered for both used cars and new cars, depending on the client’s budget and preference.

Where can I get a vehicle loan in New Zealand?

You can seek a vehicle loan from:
banks,
credit unions,
car dealerships,
Other credit companies.

Why do people need a vehicle loan?

Buying a vehicle in cash is very expensive and not many people can afford. Getting a vehicle loan enables one to acquire their desired car. You pay manageable instalments over a period until they finish repaying the loan.

Vehicle Loan Interest Rates?

An interest rate is a fee charged to a debtor for borrowing money. It is a percentage on the outstanding loan amount. Meaning, as your loan decreases, so does the interest you pay for the loan.

What is APR?

APR is Annual Percentage Rate; is interest rate translated as a yearly rate.

What are the factors that affect the interest rate charged on my vehicle loan?

Interest rates are affected by several factors, namely:
The loan tenure: this is the duration you take to repay the vehicle loan. The longer the loan term, the higher the interest rate.
The loan amount: this is the principal amount borrowed. The higher the loan amount, the more interest you pay.
Credit rating: if you have a high credit score, you are likely to get a low-interest rate, as the risk for lending you is minimal, compared to someone with a low score.

How can I estimate my monthly payments?

Use an online vehicle loan calculator. Key in the loan amount you intend to borrow, the duration of the loan (months), and the interest rate, then make the calculation. You will be able to get an estimated figure of how much you would be paying monthly.

What is a credit score?

A credit score is a scale used to determine an individual’s creditworthiness. The scale runs from 0-1000. It is usually measured by how you pay your credit card bills, utility bills, mortgage, etc. if you pay these on time, your credit score is high.

Where do I obtain my credit report in New Zealand?

The bureaus in NZ include:
Dun and Bradstreet
Equifax
Centrix

How does credit score affect my vehicle loan?

The higher your credit score, the better your chances to get financed for a vehicle loan and also the better your bargaining power on the interest rate.

Can I get a vehicle loan with no credit in New Zealand?

Yes, but the lender will require a guarantor to co-sign for the loan. That way they will be covered of any risk, should you fail to repay the loan. The co-signor can be your spouse or close family member with an excellent credit rating.

Can I get a vehicle loan with bad credit?

Yes, you can. Bad credit can be a result of circumstances like divorce, bankruptcy, etc. the lender will decide whether to lend you the money. However, you are likely to pay a high-Interest rate for the loan.

What documents do I require to apply for vehicle loan 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 stub.
What is the minimum age requirement to apply for vehicle loan in New Zealand?
You should be at least 18 years.

What is the difference between a secured vehicle loan and unsecured vehicle loan?

Secured vehicle loan: this is whereby the vehicle you are purchasing is the collateral for the loan you are acquiring. The loan provider holds the ownership of the car until you finish repayment. The interest charged on the secured auto loan is lower as the risk involved is minimal.
Unsecured vehicle loan: Is a car loan without collateral. The interest rate charged on the unsecured auto loan is high as the risk is high.

Understanding Vehicle Loan Rates

Posted on January 26, 2019November 2, 2019 by admin

VEHICLE LOAN INTEREST RATES IN NEW ZEALAND

Understanding vehicle loan rates

Owning a vehicle in New Zealand is easy. There are lots of options for you to choose from depending on your financial ability, such as buying by cash, seeking an auto loan or even trade-in if you want an upgrade. Before attempting to borrow money to buy a car, you need to understand vehicle loan rates in New Zealand.

Vehicle Loan Rates

A vehicle loan is a form of credit given to a borrower by a car dealer or financial institution to buy a car. The car may be new or used.
Vehicle loan rates are the fees charged to a debtor for borrowing money. The vehicle loan interest rates here in New Zealand vary. It is wise to do thorough research so that you get the lowest and the best vehicle loan rates possible.

How is the vehicle loan calculated?

An automobile loan calculator is used to estimate the amount of money you will be paying for the loan. Whether weekly, bi-weekly or monthly depending on your preference. You key in the amount of money you intend to borrow, the duration of borrowing (in months), and the interest rate.

Please note that the car loan calculator will only give you an estimated figure. The vehicle loan calculator does not consider some charges which affect the overall amount paid at by the end of loan term. These charges include taxes, documentation fees and registration fees.

Understanding Vehicle Loan Rates for New and Used Cars

Used vehicle loan rates

Used vehicle loan rates: are rates charged on loan given to an individual seeking to buy a used car. The amount of the money financed is usually lower, but this is not always an advantage to the borrower.

The interest rates charged for vehicles on used car loans are very high. Used cars are considered to be a liability to the financier. Due to their high maintenance attracted by frequent breakdowns and the need for spares. It is likely to be very expensive for the debtor and may cause them to default altogether.

For this reason, the lender will charge high vehicle loan rates on the used cars to cover themselves. Lenders in New Zealand usually prefer to give 2 or 3 years on used vehicles, and some can give up to 5 years but not more than that.

New vehicle loan rates

New vehicle loan rates: are rates offered on loan to buy a new vehicle. While the amount of money borrowed may be higher, the new cars are less of a liability to the lender as the new cars have 2 or 3 years of warranty.

It covers the lender from the risk of losses as in case of default, as they can sell the vehicle and recover the amount owed. For this reason, the vehicle loan rates charged on new vehicle loans is lower compared to the used one.

Factors that affect vehicle loan interest rates:

Loan term: this is the duration the loan tenure will last. Usually counted in months. Longer term attracts higher interest rates for vehicle loans.
Loan amount: this is the amount being borrowed to purchase a car. The more the loan, the higher the vehicle loan interest rates. If your loan amount is high, it is advisable to pay a substantial down payment to bring down the loan amount.
Credit score: the higher your credit score, the better chances for you to get lower interest rates for the vehicle loan.
.

Tips to getting lower interest rates for vehicle loans:

Research: various lenders in New Zealand offer different interest rates for vehicle loans. Doing research can help you land low-interest rates for vehicle loan hence saving you money.
Down payment: settling a substantial amount of money as down payment reduces your overall vehicle loan rates on borrowed amount and the monthly payments.
Take short-term loans: Short loan period attracts high installments, but in the long run, saves you a lot of money.

How to ensure you get the best deal.

The best and easiest way is to check the total cost of the loan. You will achieve this by adding establishment fees + origination (broker/dealer) fees + total payments + termination fees (if any). This sum will give you the total amount of money you will have paid at the end of the loan tenure.

Make comparison for three or four lenders and the one with the lowest figure will be the cheapest and the best.

Vehicle loan rates in New Zealand

Vehicle loan rates in New Zealand can be very affordable and manageable; all you need to do is find the right lender to lend you the money. Now that you have vast knowledge on vehicle loan rates, you are ready to start shopping. Good luck!

Loan Providers, Vehicle Loan Help

Vehicle Loan Providers

Posted on January 26, 2019November 2, 2019 by admin

VEHICLE LOAN PROVIDERS

Vehicle Loan Lenders

There are many Vehicle loan providers in New Zealand. Each provider has their terms and conditions. Depending on your needs, each provider has something to offer. A few of the vehicle loan providers in New Zealand include; AA Finance, kiwi car loans, NZCU Baywide, MARAC and MTF Finance.

LOAN PROVIDERS

AA FINANCE

AA Finance has been in operation for over 20years.

What They Offer:

Fixed annual rates between 9.95% to 15.95%
Online vehicle loans; applying loans is easy; you can access credit from anywhere in New Zealand.
Simplified process: fill in the online application or speak to a representative on the phone to help you with the process.
Quick loan approval: takes an hour or a few hours for preapproval decision to be made.
Tailored terms to suit your specific needs and requirements.
Loan term of up to five years.
Easy-to-use online calculator.
The minimum loan amount is $5,00

Requirements:

You must be 18years and above
Must hold a valid driver’s license
The vehicle is the security for the loan.

AA finance provides an easy-to-follow vehicle loan application process.
Learn all about the fees for AA finance: https://bit.ly/2u9qpRS
To contact AA Finance visit: https://www.aa.co.nz/contact-us/

KIWI CAR LOANS

Kiwi car loan was founded in 2012 to offer various car finance options to clients. These include: secured, unsecured and private sale car loans. Secured vehicle loan, the car is the security for the loan. Unsecured vehicle loan has no security; hence the interest charged is higher. Private sale vehicle loan is for purchasing a vehicle from directly an individual, not dealerships.

What They Offer:

Loan term of up to 5 years
Offer insurance solutions
Down payment is not a must
Fast loan preapprovals
An easy-to-use online calculator

To learn more about kiwi auto loans, please visit: http://www.kiwicarloans.co.nz/
Contact information: http://www.kiwicarloans.co.nz/contact

NZCU BAYWIDE

NZCU Baywide is a credit union. It has been in operation since 1971.

What They Offer:

Interest rates from 9.9%p.a. for secured car loans and 11.9%p.a. for unsecured vehicle loans.
Minimum loan amount of $2, 000.
An easy-to-use online calculator.
Tailored rates to suit your financial needs

NZCU Baywide requires you to answer a few questions before proceeding to the main application. Your answers will determine if you qualify to advance to the next stage of loan application.

To learn about fees for NZCU Baywide, use this link: https://bit.ly/2zu7Vkb
Contact information for NZCU: https://nzcubaywide.co.nz/contact-us/contact

MARAC

MARAC was founded in 1952 and has a link to Heartland Bank. MARAC offers competitive rates from 9.75%p.a. to 19.95%p.a.

What They Offer:

Simple and clear online application form.
Loan terms of up to 5 years
Fast vehicle loan approvals.
Excellent client service.
Tailored repayments to suit your needs.

Requirements:

The vehicle is the security for the loan.
Applicant must be 18 years and above
Must be a holder of a valid driver’s license
The vehicle to have full insurance.

MARAC has a default interest fee of 6%p.a above the initial rate. Other charges can be found here: https://www.marac.co.nz/net/legal/fees.aspx
For more information about MARAC visit: https://bit.ly/2zxi0Ni
The contact information for MARAC: https://www.marac.co.nz/net/contact-us.aspx

MTF FINANCE (Motor Trade Finance Limited)

MFT has been operating since 1970 with an aim to help car dealers to offer vehicle loans directly to their clients.

What They Offer:

Quick vehicle loan preapproval.
Calculator with two options: calculating the monthly payments or calculating how much to borrow.
Gives you the freedom to choose car dealer
Tailored loan repayment plan for your specific needs.
Minimum amount to borrow is $2,000

Requirements:

Must be 18 years and over.
New Zealand resident.
Must have an account with MTF finance.
Hold a valid driver’s license.

MTF has a network of over 400 dealers, giving clients a wide variety.
To learn more about MTF terms and conditions visit https://www.mtf.co.nz/terms.html
Contact information: https://www.mtf.co.nz/contact.html

Vehicle Loan Providers

When comparing different loan providers, the main comparison points should be interest rates, loan terms, and terms and conditions. Whatever your needs, Vehicle loan providers in New Zealand have the solutions.

Online Vehicle Loans, Vehicle Loan Help

Online Vehicle Loans

Posted on January 25, 2019November 2, 2019 by admin

Online vehicle loans in New Zealand

Understand Online vehicle loans

Applying for credit is a complicated process; it is tedious and energy draining when you have to go back and forth to the lenders. With internet access, you can ease the process by acquiring vehicle loans online in New Zealand. You can apply for online vehicle loans from anywhere.

Online vehicle loans are credit facilities offered by banks, credit unions or other lending companies to an individual seeking to buy a car.

How Online Vehicle Loans Work

Banks, credit unions and other credit companies offer online vehicle loans. They aim to give quick and reliable loans.
Research on the kind of vehicle you want and its cost. Use an online vehicle loan calculator to get an estimate of your monthly payments. Ensure that you settle on an amount you can comfortably pay.

Online application form

Fill out the online application form; this requires details such as name, physical address, mailing address, social security number, employment details, annual income etc. read and agree to the terms and conditions then submit your application. You will receive a notification after your loan has been pre-approved.

A representative will call you to confirm the details on your online application form. You will then be required to visit the car dealer. Identify, negotiate and close the deal for the car that you want and finalise on the paperwork. Proofread the contract before signing. The dealership will forward the paperwork to the lender who in turn releases the money. Now that the process is complete you pick your vehicle.

Requirements For Online Vehicle Loans

Online Vehicle Loan Requirements

Should be 18 years and above.
Should hold a full or restricted drivers licence
Provide proof of income; avail your latest pay stub.
Applicant should have a valid identification Document such as a passport.
Should be a New Zealand citizen and permanent resident

Advantages Of Online Vehicle Loans

They are convenient: you can apply at any time and anywhere as long as you have internet access.
Flexible payment schedule; applying for vehicle loans online in New Zealand enables you to negotiate for a suitable payment plan.
Competitive rates: due to the high competition among lenders, the interest rates charges for online vehicle loans are relatively low.
Faster comparison: unlike the traditional loan application process, the online application enables you to visit different websites concurrently.
Allowing you to make conclusive comparisons on; interest rates, loan terms, monthly payments, terms and conditions for various lenders.
Quick loan processing: the process of acquiring vehicle loans online in New Zealand is speedy and efficient.
Auto loan calculators are readily available online: you can estimate the amount of money you want to borrow and monthly payments you are likely to pay.
Fewer frustrations: the process of acquiring online vehicle loans in New Zealand is straightforward, unlike the traditional loan application process.

Disadvantages Of Online Vehicle Loans

Fraudulent websites: canning individuals set up malicious sites to con non suspecting clients. It is advisable to deal with reputable lending companies.
Small lending companies have a high risk of going out of business.
Lack of direct interaction with representatives makes it hard to trust the process for some people.
Predatory companies: some lenders prey on desperation of clients with poor credit score rating. They offer loans at very high rates.
Some lenders have a restrictive list of dealerships; which limits your options.

Online vehicle loans

Online vehicle loans have gained popularity in New Zealand. Many people prefer applying for loans online as the process is quick and the chances of getting approved are high. Be cautious of malicious websites. When applying for vehicle loans online in New Zealand, stick to reputable lending companies.

Vehicle Loan Help, Vehicle Loans

Vehicle Loans

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

VEHICLE LOANS

Vehicle Loans in New Zealand

A vehicle loan is a loan that an individual takes out in order to buy a vehicle. It is a type of secured loan in which the lender loans the borrower the cash to purchase the vehicle and in return the borrower has to pay back the amount of the loan plus interest by keeping their valuable item or the vehicle that is purchased as a collateral.

The loan is paid off in fixed instalments. If the borrower is unable to pay the loan amount, the lender has a right to seize that collateral and sell it in order to recover losses. Once the loan is paid off then lender abolish ownership over the collateral.

Basic building blocks of a vehicle loan:

Loan Cost: The principal and the interest are two basic parts of the cost of loans for vehicle. The principal amount is the decided cost of the vehicle and the interest is the total amount of the costs accrued during the life of the loan. It is based on the principal amount and the fixed interest rate.

Interest rates: It is the charged amount expressed in terms of percentage of the principal amount by a lender to a borrower for the use of assets. Interest rates are fixed.

Down Payment: It is an amount that is paid by the borrower at the time of vehicle purchase. It is also expressed in terms of a percentage of the total price.

The terms: Most of the car loans are fixed at 36, 48 or 60 months. There are different terms of loans for different credit history borrowers.

The vehicle loan process:

Following are the basic steps to follow in the process of securing loans for vehicle:

Determine what you can afford: If you are planning to take a vehicle loan then work on a realistic budget that helps you to recognize what you can afford in terms of a monthly payment. Then go to the amount of loan that you can repay. Then next the amount of down payment, you plan to make. This can help you which type of vehicle you can afford to purchase.

Check your credit score: Before talking to lenders, it’s important to know where you stand in regard to credit score. Generally, lenders depend on credit scores and reports when determining loan interest terms and rates. The higher your credit score, the better position you will secure at a lower rate.

Shop around the best loan deal: It is the most important thing to do as terms and rates can vary, sometimes depends on lenders. It is always recommended to look for the best loan before dealing for the vehicle loan.

Get Approval: Getting pre-approved for a loan means you have set your limits before setting foot in the dealer’s showroom. The best places to look for a pre-approved loan are credit unions and banks.

Shop for your vehicle: After approval, you can now visit your near auto dealer’s showroom and can purchase the exact vehicle that you want. Your lender only needs to know about the model, year and vehicle identification number.

Buying a Car

Acquire a preapproval for the vehicle loan

Negotiate for the car

visit a few dealers and negotiate for the vehicle that you want. Settle on the dealer with the lowest price. The preapproval gives you an upper hand in negotiations. If you are buying a used vehicle, ensure the warrant of fitness is still valid, get a mechanic to do a full inspection of the car and finally take the car for a spin. There is no better way to know the state of the car than driving it yourself!

Alert the lender

with the dealer information, car model, year of manufacture, mileage etc., so that the lender can finalise on your loan processing. After this, you need to sign the paperwork; ensure you understand every clause of the agreement before you append your signature.

Pros and Cons of Vehicle Loans

Advantages Of Vehicle Loans

You can afford to buy your dream car.
Small monthly payments are more manageable and have less pressure compared to paying a lump sum.
You enjoy using the vehicle while still paying for it.
At the end of the loan term, you automatically gain full ownership of the vehicle.

Disadvantages Of Vehicle Loans

You pay extra costs in the form of interest.
You get lots of conditions from the lender, especially for secured vehicle loans.
Choosing a long-term loan for a used vehicle can easily cause you to have an upside down; where you owe more than the car is worth.
In case your financial status flops for secured vehicle loans, the lender can repossess your vehicle.
Some lenders charge an early exit fee, which incurs unnecessary cost in the event where you want to clear the loan.

Vehicle loans in New Zealand

Vehicle loans in New Zealand are very competitive, reliable and easily accessible. Doing in-depth research on the loan providers, rates, loan tenure and terms and conditions, will enable you to make the best decision that could save you time and money. Happy shopping!

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.