Auckland is a great place to buy a car – it’s a big place and there are so many options to choose from, so you’re sure to find the perfect vehicle in no time. Securing car finance is an essential step in this process for many people, but what’s the best way to get a car loan?
For individuals looking to finance a car, Auckland has an extensive range of options available. Keep reading to learn more about the different ways you can get car finance, including tips for getting the best deal, and how to apply for a car loan.
Understanding Car Finance Options
When it comes to car loans in Auckland, there are several options available to potential buyers:
Dealership Finance
Many Auckland car dealerships offer in-house financing options. This can be convenient as it allows you to handle everything in one location. It often means you can drive away with your car that day – very tempting!
However, it’s vital to review the terms carefully to ensure you’re getting a fair rate. Dealer financing can be more expensive, but because you may be less inclined to shop around after finding a car you like, you may not realize just how much more expensive it is.
This is why you should always compare like-for-like offers by checking rates and building the overall cost of finance into the purchase price of the car. Suppose you get a great deal on a car you love, but when you add up the cost of the finance, that car may not be such a great deal.
Bank Loans
Traditional banks are a common choice for car finance in Auckland. But don’t assume that because a bank is providing them you are getting the best deal. Some banks outsource their personal lending arm to other finance companies, while others only offer one interest rate – so you could end up paying more than you need to.
Moreover, banks usually enforce stringent criteria for loan approval. Individuals with imperfect credit histories may find it challenging to obtain a loan through a bank. On the other hand, finance companies and online lenders tend to be more flexible in their lending practices and are often willing to provide loans to those with difficult credit backgrounds.
It is likely that car loans through a bank will be secured loans, which means the bank will hold the car as security.
Personal Loans
Personal loans can also be used to finance a vehicle purchase. They can be sourced from banks, credit unions, or even online lenders. The great thing about a personal loan is you generally have more freedom to buy the car you want. If you want a competitive interest rate, choose an online loan broker, like Auckland Loans. We use our network of low-cost lenders to get you the lowest rates on fair terms.
Unsecured and Secured Car Loans
When you’re looking to finance a car in Auckland, it’s essential to understand the difference between unsecured and secured loans.
Unsecured Loans
Unsecured car loans do not require any collateral, meaning you don’t have to pledge an asset against the loan. Instead, lenders assess your creditworthiness based primarily on your credit score, income, and repayment history.
The advantage of unsecured loans is the absence of risk to your assets; however, they generally come with higher interest rates because of the lender’s increased risk. You also have the freedom to shop as a cash buyer. If you have a solid credit score and a stable income, this option could be beneficial for you.
Secured Loans
On the other hand, secured car loans require the borrower to put up an asset—often the vehicle itself—as collateral. This collateral reduces the risk for lenders, and as a result, secured loans usually carry lower interest rates. However, it’s crucial to keep in mind that if you default on your loan, the lender has the right to seize the asset.
For borrowers who may not have an excellent credit score, secured loans can offer an opportunity to access finance at more favorable rates, provided you’re comfortable with the associated risks.
How to get the best car loan in Auckland
The best car loan is usually the one that costs you the least, and has the fairest terms. So, how do you find the best deal? This is where a loan broker comes in.
Auckland Loans is an online loan broker that arranges fair, affordable loans for Aucklanders through our network of low-cost lenders.
How does the process work?
We make borrowing fun and easy – you’ll enjoy getting a car loan through us! All you have to do is take 2 minutes to complete our simple online application form and we’ll take it from there. We’ll be in touch to get some more information from you before we put your loan application in front of multiple lenders. Within 1-2 hours* we’ll come back to you with some options, and you choose the deal that’s best for you! After you sign the loan contract online, we’ll arrange payout the same day*.
How do you do it so fast?
Our process is 100% online, so we’ve done away with things that slow the process down like annoying paperwork and face-to-face appointments. You can do everything from wherever you are, and it’s all electronic so everything you sign is done online. That frees you up to get on with your day, and lets us get down to the business of finding you a great deal on a car loan!
How much can I borrow?
You can borrow up to $75,000 unsecured, or $150,000 secured. Not sure which is right for you? Just get in touch with one of our friendly loan advisors – they’re happy to discuss your financial situation with you to help you work out the best path forward.
Best Bad Credit Car Finance Auckland
Navigating the world of car finance can be particularly challenging for individuals in Auckland with a bad credit history. If your credit score is less than great, you may be worried about your chances of getting a bad credit car loan.
There’s no need to fret, because Auckland Loans helps people with bad credit get loans everyday. We believe in second chances, which is why we give people the chance to rebuild their credit scores by offering fair car finance.
As long as you have regular income and can afford the monthly repayments, there’s a good chance we can find a positive solution for you. Give our friendly team a call to discuss your situation.
