Top 5 Auto Financing And Car Loan Options According To Kiwis Online

Date Feb 11, 2022
Blog category car loans
By Staff writer
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Auto financing is a big commitment, especially if you’re planning to put it towards an expensive new car. Ideally, conversations on budgeting like fees and interest rates should have occurred before looking for the desired vehicle. It’s always best to ask these lenders for the details before even securing the car deal that’s on the table.

To help with this, we’ve browsed to see which providers and lenders New Zealanders recommend, and the reasons behind them. From banks to specialised car financing institutions, here are some of NZ’s recommended lenders for auto financing.

Simplify

For car loans, Simplify offers competitive rates and good deals with other financial institutions. For one, they allow users to negotiate their terms in order to get a good rate. Reddit user u/Heavy_Bend_6109 shared that they were able to get around with 5% less interest than a comparable quote from MTF. That's Around 9.5% compared to 14.5%.

Simplify also talks about its no-effect credit check, allowing interested users to see if they’re eligible for a loan without necessarily affecting their credit score as checks often do. Once they are shown to be eligible, customers can then use their hassle-free application process online, leveraging Simplify’s technology in order to easily compare rates from major lenders.

UDC

If you’re looking specifically to go electric and purchase an EV for your next ride, then UDC can be a good fit for you. As one of NZ’s leading financers for electric cars and vehicles, the loans they offer can be quite competitive, starting at $10,000 with interest rates from 7.45% p.a. To 7.95% p.a. They will even include your home charger in the costs.

UDC offers flexible loan terms starting at 1 to 5 years alongside weekly, fortnightly, or even monthly repayment options. They also have a pre-approval process which can help set your budget when choosing which vehicle to buy.

Heartland Bank

If you’re interested in getting auto financing from a bank, then you can look at Heartland Banks’ financing options. It is possible to get the lowest rates from them as they offer around 8.45% p.a. and 15.45% interest rates, with no hidden fees and zero-deposit finance options available.

You can easily apply online and get a response within minutes. You can also get a quick estimate by making use of their auto financing calculator here. With the help of Heartland, you can get behind the wheel immediately, completing all of the necessary requirements online.

MTF

For getting secured auto financing online, MTF can be a good option for you. MTF Finance personalizes your loan interest depending on specific factors, while also letting you choose a term that suits your needs, for up to 60 months. Reddit user u/chefguy831 reports that they were able to get around 10% interest rate when getting a car loan from MTF, which isn’t too unusual. Typical rates from MTF ranges from 8.70% p.a. to 20.70% p.a. based on your personal credit rating.

Keep in mind that loans from MTF Finance have upfront and ongoing fees such as:

  • Establishment fee of up to $376
  • Personal Property Securities Register fee of $10.35
  • A monthly maintenance fee of up to $8.50

In case you decide to pay off your loan earlier than the due date, you will also be charged a $28 early repayment fee. Like Heartland, you can get an estimate on your auto financing online by visiting MTF Finance’s website here.

You can also add optional extras like a Payment Waiver which when approved, can waive your repayments in case of an unexpected life event. They also offer Mechanical Breakdown Insurance, which covers electrical and mechanical problems as well as AA Roadservice.

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Co-operative Bank

Co-operative Bank also provides a good option for car loans in NZ, with floating interest rates ranging from 6.99% p.a. to 19.99% p.a. Ultimately, how much interest rate you’ll get is based on your credit history as well as other factors. Fortunately, Cooperative Bank doesn’t charge any additional fees or costs for paying extra for every repayment, or if you pay it off in full.

Co-operative Bank also offers Loan Plus. This provides additional cover in an unexpected life event such as death. They also have Loan Instalment Care, providing cover up to a maximum loan repayment of $1,500 per month in the event of injuries or illness. Likewise, you can also apply for a top-up for buying a new set of wheels in the event you already have an existing loan.

In terms of the fine print, Co-operative bank’s lending and insurance criteria, fees, interest rates, and even its Standard Facility Terms and Conditions are subject to change. You can also check an estimate of your auto financing online at their website here.

Other car loan tips from NZ Reddit

Other users on Reddit have also suggested buying a good secondhand car with cash aside from just looking at a new car purchase via auto financing. Of course, you should perform thorough checks on the vehicle when going down this route so as not to end up with a shoddy car that you might replace in six months' time. 

When opting for a car loan from a lender, user u/Luluraine reminds users to read the fine print as well. Don’t feel too complacent when you see like 0% finance for a certain number of months, since the lender can easily ping you at a higher rate if you don’t pay up on time or if you default on the terms. 

Compare auto financing options

Whether you choose a bank or a specialised car lender, it always pays to shop around and do your due research for the best deal. Sometimes, additional factors like where you live, how often you drive, and even what kind of car you drive, can greatly influence the rates you can get from any particular provider.

Now you can easily compare all the best car loan options on one page. Use glimp's FREE car loans comparison tool. Simply enter a few details about your needs, and we’ll sort out all the relevant loan options for you. Happy car shopping!

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