Guide To Used Car Financing In NZ

Oct 28, 2021
Car Insurance
By Staff writer

Learn how to apply for used car financing in NZ with this guide.

What is Car Financing?

Car financing is the process of agreeing to pay for a vehicle over a period of time. You can choose to apply for a loan directly from a bank or any finance company, or you can work directly with the dealership. The dealership may still retain the contract but they typically sell it to a bank, finance company, or credit union — called an assignee, or the service that will collect your payments.

Once you qualify for a car loan, your car financing is then coursed through a lender, so you just need to pay them the amount you borrowed for the vehicle. Do note that opting for car financing adds to the total cost of the car since you’ll be paying associated costs and interest. 

What are my options for used car financing in NZ?

Of course, there are several layers to learn about purchasing a vehicle via car financing. For one, you do have some options as to what kind of financing you wish to use:

Personal Contract Purchase (PCP)

This is a common option when it comes to financing vehicles for used cars. It’s one of the more complicated schemes but it still shouldn’t be too difficult for first-time buyers to grasp.

Under a PCP scheme, you first make a deposit on a certain percentage of the car’s value. After that, you'll need to make a series of monthly payments. At the end of the agreement, you get an optional balloon payment that will allow you to finally own the vehicle. If you opt out of this balloon payment, then you can hand the car back and part ways with your chosen finance provider.


Hire Purchase or Conditional Sale

This is a bit more straightforward. Under this scheme, you just need to pay a monthly amount for a fixed period. At the end of the agreement, you now own the vehicle. It’s often a lot more expensive than a PCP scheme per month but this can be a better option for those who are set on the car they’ve chosen to buy.

Personal Contract Hire (PCH) or Leasing

This is similar to the hire purchase scheme but in this case, you’re merely leasing the car like you would do with a hire arrangement for a vehicle you use over the holidays, but on a much longer term. You don’t own the car itself; you’re only paying to use it and you will hand it back at the end of the term.

This may seem counterintuitive to the concept of car ownership but it can be a good option if you’re the type who wishes to change vehicles after a certain amount of time. It is often the cheapest option depending on where you ask. However, one thing to keep in mind is that this option may not always be available at used car dealerships.

How to apply for car financing in NZ

While the process can vary depending on your chosen provider, applying for car financing usually takes three major steps:

  • Start the application by going to your chosen financing provider either online, by phone, or visiting in person.
  • Work out a loan or payment scheme that suits your needs
  • Get approved by providing the necessary documents and your provider should start processing the application. They will then help you with the actual car purchase from the dealership.

Sometimes, your financier may already have an approved vehicle dealer they work closely with. This can help you find a vehicle that best suits your own preferences and budget. Always check with your provider to ensure a smooth purchase process.

Required Documents:

Applying for car financing typically requires you to bring the following documents:

  • Valid NZ Driver’s License
  • Proof of Address
  • Bank Statements that show the last 90 days

You'll need to be an NZ resident or Visa holder over 18 years of age, and show proof of regular income.

Financing Used Cars for Sale

Of course, most car financing options meant for new vehicles can also apply for used vehicles as well. Note that you need to be extra careful when choosing a used vehicle. Take a closer look at its components and history. See if it’s a private transaction, and how trustworthy the seller is.

Companies that offer used car finance deals in NZ:

Used Cars - Auckland

Go Car Finance

Go Car Finance promises a long-term commitment to their clients, with most of their deals tailored towards helping people attain car ownership. With this, they can even help with other needs such as managing car repairs and maintenance, licenses, insurance, and more. Their prebuilt and tailored car financing ensures that their clients have all the options they need to make a decision.

Kiwi Car Loans

With a variety of finance options for both new and used cars in Auckland, Kiwi Car Loans work in partnership with other respected lenders for faster turnaround times and hassle-free process. Their team ensures great service all around, starting from consultation up until you get your vehicle, as well as its associated warranties and insurance.

Motor Vehicle Finance

Motor Vehicle Finance offers flexible repayment plans and comprehensive end-to-end solutions for your next car purchase. Their interest rates are very competitive, even offering to deduct $500 from your loan repayment if you find a cheaper provider. 

Max Loans

Building strong lender-borrower relationships, Max Loans makes it a point to work closely with their clients, ensuring that they get the financing options for their next car purchase. By helping their clients get their budget approved ahead of time, they can better figure out their maximum limits, avoiding the disappointment that comes with pursuing a vehicle that’s way out of budget. Whether you’re looking to buy from a dealer or a private seller, Max Loans can provide a competitive option for you.

Rides2Go Ltd

Rides2Go helps clients with all their car financing needs. They can help with used car financing even with bad credit without immediately turning them down. This makes them a good option for people who may have some difficulty getting their credit scores sorted out. Their quick turnaround time makes the process easier, so you can get the vehicle you want in no time.

Logic Finance

From home loans to business financing to vehicle financing, Logic Finance is not only a good place to check for car financing, they’re also able to help with other vehicle types like boats and yachts. Their car financing options are aimed at helping you find the most acceptable rates for your budget. Their terms are very flexible, so you can easily adjust if anything comes up.

Used Cars - Wellington 

NZCU Baywide Wellington

With their easy application process, NZCU ensures your dream vehicle is just within reach. They offer competitive car loans starting at 13.95% for a secured loan, with the purchased vehicle as collateral. When you choose to finance your vehicle with NZCU, you get a dedicated car lending consultant and a selection of repayment terms, making your car financing hassle-free.

Used Cars - Christchurch


With a huge number of car dealerships and showrooms, you are sure to find a model that works for you. CarPow provides easy, hassle-free car financing options and car loans that cover the whole Christchurch region. They’re capable of providing you with a lending decision within an hour or so, along with an accurate repayment amount for your approved loan.

Other Providers:


Simplify true to their name, makes getting a car financing option easy. They offer interest rates for as low as 6.25%. They’ve helped thousands of Kiwis get their dream car without dealing with the hassle of sorting through the financing process. They’re proud of their smart technology that enables them to provide their clients with a super fast approval process when you apply online.

Lending Crowd

Expect low fixed rates with no hidden fees. The Lending Crowd has positioned itself as one of the best ways to borrow money for car financing. You may apply online, and the Lending Crowd will deposit the money straight to either your seller, or your own bank account once approved.

Compare used car finance deals and options

Of course, only you can determine which provider is best for your needs. When it comes to buying used vehicles, take your time to check all the components, history, and other important factors to ensure that the process is going to be easy and fair.

Use glimp's FREE car loans calculator to get the best car loan rates in NZ.

Shane Egan (Popup) , 2023-07-10

Excellent service. Responsive and easy to deal with. Got me an awesome deal on Broadband. Well worth calling to see what they can do. 👍

Jamie Martin , 2023-06-18

Really great service, helped us save about 30% on power plus a free $100 sign up bonus. Very fast and efficient.

Kat W , 2023-06-20

Very helpful and informative. Lovely chatting with them on the phone, helped me find a power supplier, pretty simple and straight forward

Dee Painter , 2023-08-08

So easy to use, very helpful and got a great deal with my power and gas