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Car loans are typically considered personal loans, meaning that you are borrowing the money from a lender. You will own the car however the vehicle is usually held as security against the loan.

You will have a repayment schedule. Under a repayment plan you will make regular payments (usually matching your pay frequency) that cover both the cost of the loan and the interest and any associated fees you need to pay.

Should you miss any payments or fall behind, the lender has the right to sell the car to recover their money. This is an extremely rare occurrence as most borrowers fulfil their repayment obligations. Once the loan is paid off, full ownership of the vehicle is transferred.

Usually, you can choose the length of the loan. Whether you want to pay off the car in 1 year, 3 years or 5 years, you can decide this when you apply.

You can apply for finance with us if you’re at least 18 years of age, a New Zealand citizen, New Zealand resident or hold a valid New Zealand work visa.

You will need to hold a New Zealand drivers licence or if you have entered New Zealand in the last 12 months, an overseas licence is most often accepted.

You will also need to provide proof of address and will usually need to provide your last three months of bank statements.

Often, other documents are requested such as a copy of your most recent payslip, employment contract etc.

When it comes to bad credit a vehicle loan does help mitigate some of the risks from a lender when providing finance as there is collateral to claim against if the loan is unpaid.

Although being offered finance is not a given, a vehicle loan does open more options when there is a vehicle to use as security.

We need to gather all the correct information upfront before we can assess whether the application will be approved. The more information we get up front the faster it will be.