Car Loans in New Zealand | Top 5 Car Loan Rates
Car Loans in New Zealand is a type of a personal loan which is specially designed to purchase a car. This type of loans in New Zealand are issued by banks, car dealerships or private lenders.
Buying a new or used car by using a car loan in New Zealand is related to your purchase power.
Naturally, having a knowledge about the interest rates and fees that firms and institutions are providing a car loan is important. A proper comparison is really the key point of getting a car loan because most of the time car finance process is happening after you have found the car which you like.
That leads you to decide immediately then creates difficulties to make a good comparison while the “deal is on the table”. Therefore, understanding the market before talking about finance with a car dealer or seller is significant.
Applying Car Loans in New Zealand
Borrowers use the amount they receive to buy the vehicle they want and make weekly, fortnightly or monthly repayments plus interest until they become debt-free.
Lenders decide the loan amount, the interest rate and the repayment term considering the borrower’s personal circumstances. It’s essential for loan seekers to shop among the lenders to find the most suitable loans in New Zealand deal for them.
Interest Rates for Car Loan
A general car loan term usually lasts 48 months or less. The total amount that you have to pay usually decreases with the shorter term loan since you will be required to pay less interest. Almost every bank has a calculator for each payment term and interest rate which helps you to find out details about your loan online.
How To Get a Car Loan in New Zealand?
Anyone who is older than 18, lives in New Zealand, has a driver’s license, is currently employed or have a stable income can apply for a car loan in New Zealand. Borrowers who have clean credit histories, stable employment, who can pledge an asset and prove their repayment ability would have higher chance of being approved for a car loan instantly.
Borrowers also need to submit necessary documents including:
- Proof of address
- Proof of employment of income
- Photo identification
- Driver’s License
Banks For a Car Loan
The loan providers are mainly consisting with banks, credit unions and finance companies.
- ASB, Co-operative Bank
- Heartland Bank
are most popular banks that are giving vehicle loans with different properties.
For example, Kiwibank offers car loan with a range of interest rates from 12.99% p.a. to 18.95% p.a. This interest may be changed due to the amount of borrowed money, term, and customers’ credit rating. Also, ASB is providing a car loan with a fixed interest rates range from 12.95% p.a. to 19.95% p.a.
Credit Unions For a Car Loan
First CU, NZ Firefighters CU, NZCU Auckland, NZCU Baywide and Police CU are the most known credit unions which offer car loan. The interest rates are mainly between 9.90% to 13.90% almost for all of the credit unions as mentioned above.
Finance Companies For a Car Loan
There are many financial companies in New Zealand which offer a car loan but some general ones can be written as; AA Finance, Admiral Finance, Quick loans, Lending Crowd, Zooma and Swoosh, etc.
To illustrate, Lending Crowd Car Loans’ interest rates are within the range of 6.69% p.a. to 18.20% p.a. Car loan amount range is from $2000 to $200000 with loan term 3 to 5 years. Fee range is altering accordingly with the amount of borrowed money from minimum $250 to $1450.
Top 5 Car Loan Rates
- Lending Crowd: Borrowers can receive from $2,000 up to $200.000 to repay within 3 or 5 years with a fixed interest rate starting from 6.69% p.a. Borrowers will also charge an application fee ranging between $250 and $1450 depending on the Car Loans in New Zealand amount but there are not any early repayment fees.
- Zooma: Borrowers can receive from $5,000 up to $30.000. Repayment within 3 years with an interest rate ranging between 19.97% and 34.97% p.a. Borrowers will also charge an application fee of $21.23.
- AA Finance: Borrowers can receive from $5,000 up to $50.000. Repay within 5 months or 5 years with an interest rate ranging between 9.95% and 15.95% p.a. Borrowers will also charge an application fee of $212 ($262 for non-members).
- Admiral Finance: Borrowers can receive from $1,000 up to $50.000. Repayment within 5 years with a interest rate ranging between 13.95% and 23.95% p.a. Borrowers will also charge an application fee ranging between $125 and $595 depending on the loan amount.
- QuickLoans: Borrowers can receive from $1,000 up to $20.000 to repay within 5 years. Car Loans in New Zealand with an interest rate ranging between 9.95% and 23.95% p.a. Borrowers will also charge an application fee ranging between $95 and $595 depending on the loan amount.