Advice on Getting car Loans

Getting a car loan in New Zealand can be stressful and complicated. We have put together some for the basics tips that will be of some help to you in your quest to getting car finance in NZ.

Only borrow what you can payback:

When getting a vehicle finance, only borrow what you can payback. If think the repayments will be bit too much then consider buying a cheaper car until your are confident enough to meet the weekly or monthly repayments.

Car loans from Finance Companies :

Getting finance to buy a car in NZ is OK as long as you read all the terms and conditions in the agreement. Make sure you read the small print and clarify everything before you sign the car loan agreement.

Most of the finance companies offer good loan rates but are little bit higher then the bank car loan rates. If you have no options but to get loans from finance companies make sure you compare interest rates and find a reputable car loan lender with the best car loan rate.

Preapproved  Car loans :

Once you have decided to buy a car in New Zealand and know what sort of money you want, then getting a pre approval is the best option. Having cash will help you in negotiating with the seller to get the best deal.

Additional cost Involved with Car Loans

Car Insurance : When getting a loan for a car you will have to take insurance as well. So make sure you have enough money to cover the insurance cost as well

Maintenance Cost : you will be required to maintain the car on regular intervals ans failing to do that might void your guarantee if any. The car loan providers will ask you to maintain the vehicle according to the maintenance scheduled. So make sure you have enough to cover the service cost. 

Warranty Cost : You can buy warranty  when buying a secondhand vehicle in New Zealand. There are quite a few companies that offer mechanical warranty and these can be quite costly. If you don't know much about fixing cars then it pays to have it as if something goes wrong with the car, you will be out of pocket and with no car. So make sure you have enough to cover warranty cost.