Car finance is something, that in general, people don’t spend enough time researching. We all spend hours looking into every option when it comes to the car we’re looking to buy, but we then just spend minutes getting the finance sorted to buy those new wheels.
As with everything financial there are many NZ car finance companies that will be interested in lending you money and there are a number of things to consider when you compare car finance loans.
At NZ Compare we pull together details on a range of different car finance options. You can look at specialist car finance lenders or take a loan with the purpose of purchasing the car.
- Secured or Unsecured loan. There is a major difference between these types of loans. You can read an in depth explanation here but simply put an unsecured loan has no collateral held against it and is based purely on your credit history and the lender simply trusts you to make your repayments and the consequence of a missed payment is that they chase you for the money, eventually with legal means. A secured loans holds the debt over an asset, usually the asset that borrowing is for, like a car. Stop paying back the loan and the lender can seize the car or asset to recover the value of the loan by selling it.
- Options for borrowing money to buy a car do vary and it is important to pay as little interest and set up fees as possible because this will reduce the overall cost of the purchase. At NZ Compare we partner with companies that make it easy to compare interest rates and fees, and help you get the best deal on your car loan or car finance to keep the ongoing car repayments low.
- So if you need to buy a car and don’t have the cash readily available to buy it outright and upfront you will need to borrow and that is where you should compare car loan options and consider car finance.
- Before you start anything… consider how much you can AFFORD to repay each month… not what type of car you want. The repayment amounts each month / fortnight are what will ascertain how much money you can borrow and then the type of car you can purchase.
Now let's see what you can afford and go get those new wheels! Vroooooooooooom!