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.

Loan Rates

Vehicle Loan Rates

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

New Zealand Vehicle Loan Rates

Vehicle Loan Rates

If you are looking to get a vehicle loan in New Zealand, then getting the best vehicle loan rate is crucial. Getting a low interest rate can save you thousands of dollars in the long run, so make sure to go for the lowest interest rates when getting a vehicle loan. Do your research and find out who is offering the best car loan rates before getting the loan.

Current Vehicle loan Rates

Here at vehicle loans we have done some research and found out some of the best vehicle loan providers in New Zealand and got their interest rates. All the rates are subjected to change and depends on your financial situation. Be sure to check the loan rates with the loan providers before getting the loan.

Vehicle Loan Interest Rates

Lender

Loan

Rate

ASB

Personal Loan

From 12.95%

Co-operative Bank

Vehicle Loan

From 9.90%

Heartland Bank

Car Loan

From 9.75%

Kiwibank

Vehicle Loan

From 12.99%

Westpac

Personal Loan

From 14.00%

Harmoney

Personal Loan

From 13.39%

Lending Crowd

Personal Loan

From 13.28%

Advanti Finance

Car Loan

From 13.95%

AA Finance

Car Loan

From 9.95%

Finance Direct

Car Loan

From 14.00%

Finance Now

Car Loan

From 12.95%

GEM

Car Loan

From 12.99%

MARAC

Car Loan

From 9.75%

MTF Finance

Vehicle Loan

From 9.75%

NZ Vehicle Finance

Car Loan

From 8.90%

UDC

Car Loan

From 9.35%

Loan Rates and Fees

"Make sure to find out the total cost of the loan before you sign any paperwork. Find out the fees, rates and any additional loan cost before agreeing to the loan. "

James May

Loan Specialist

Loan Calculator, Loan Rates

Vehicle Loan Calculator

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

VEHICLE LOAN CALCULATOR

Vehicle Loan Calculator in New Zealand

Before visiting a loan provider, it is good to know your financial position. Having a clear picture of how much you can afford prepares you mentally for what to expect when applying for a vehicle loan.

Vehicle loan calculators available online; they are efficient easy to use. Loan providers in New Zealand have various types of vehicle loan calculators, but all their concepts are the same.
A vehicle loan calculator is an online tool used to estimate loan amounts and monthly repayment amounts.

How vehicle loan calculator works:

Depending on the estimate you require, online vehicle loan calculator performs two primary functions:

To calculate your monthly payment: for this function, key in the vehicle price, the number of months for repayment, interest rate, and payment plan (weekly, fortnightly or monthly) then make the calculation. The figure you obtain will be the estimated amount you will pay as instalments.
To calculate how much you can borrow: this function is convenient for someone who knows how much they can manage to pay monthly but do not know how much they are eligible to borrow. Input the preferred monthly payment, the number of months to repay the loan, interest rate and payment plan (weekly, fortnightly or monthly) then make the calculation. It will give you an estimated amount of credit you could afford to borrow.

How To Calculate Vehicle Loan Using Vehicle Loan Calculator:

Determine how much to borrow; negotiate the price of the car you intend to buy.
Visit at least three car dealers to ensure you get the best price for the vehicle you are buying.
Evaluate how much cash you have at hand to pay as down payment. Paying a down payment will reduce your loan significantly; hence decreasing your monthly payments.
After you establish these two steps, deduct the amount of down payment from the negotiated car cost. The difference will be the amount you need to borrow (principal amount).
Once you obtain the principal amount; open an online vehicle loan calculator to proceed with the calculations. Key in the principal amount, loan tenure (in months), and interest rate (quoted in the preapproval) then make the math. You will establish how much money in total you will pay at the end of the loan term, the total amount of money paid as interest at the end and how much you would be paying each month.

Some calculators offer amortization schedule which clearly shows you how the payment reduces until the term is over. Amortization schedule is a detailed illustration showing how payments are spread evenly over the loan term.

What Is Involved In The Calculation Of Vehicle Loans:

Calculation Of Vehicle Loans

Apart from the interest rates, there are fees that vehicle loans attract. The lender discloses these charges upon request for the loan.
Some of these charges include:

Taxes: tax is the amount of money charged by the government upon purchasing the vehicle. Add tax to your principal amount to determine the actual loan amount to be paid. The tax affects the loan amount but does not change the interest rate.
Dealer fees: also known as documentation fee. Is the amount of money dealers charge for the paperwork involved in loan preparation and filing.
Application fee: is a charge paid upon opening your vehicle loan. Also known as set-up fee.
Late fee: an amount of money charged on top of your monthly payments for failing to pay on time.
Monthly loan servicing fee: is a fee charged for the sake of managing the vehicle loan and keeping payment record.

These are just a few of the fees charged on loans. Make sure that your lender discloses all the fees charged on your vehicle loan. It is advisable to ask for clarifications on the charges you do not understand before signing the documents.

Vehicle loan Calculator

When using a vehicle loan calculator, it is important to specify whether you are estimating for new or used vehicle loans; as these have different rates.
This article is a guideline on how to calculate vehicle loan. It is important to note that vehicle loan providers in New Zealand have different terms and regulations. The vehicle loan calculator also does not give accurate figures as it does not factor in fee charges.

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.

Loan Type, Type of Loan, 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

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!