Has a new car caught your eye? A boat got you dreaming about weekends on the water? Or maybe a campervan has popped onto your radar?
If you’re thinking about buying a new vehicle, you may have considered taking out a loan to help.
Vehicle finance can be a great way to get behind the wheel, on the water or on your bike.
Here’s what you need to know about making vehicle finance work for you.
In simple terms, vehicle finance refers to the process of borrowing money to buy a vehicle, whether that’s a car, van or motorbike.
You borrow a lump sum and repay the money to the lender, plus interest, over an agreed period of time.
That means that rather than having to save up the money to buy the vehicle outright, vehicle finance lets you buy it now and make a series of smaller, manageable repayments. This makes it a popular option with many New Zealanders – particularly those who are itching to get on with a purchase!
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There are lots of reasons why you might think about vehicle finance if you’re planning a purchase.
It may give you access to a wider range of vehicles because taking out a loan may give you more flexibility in the amount you can afford to spend.
You may be able to get a newer, more reliable or just better-quality vehicle without having to tap into your savings. This could even save you money in the long run if it means less maintenance is required.
Loans can usually be tailored to individual budgets, with different payment terms to suit your needs.
Get ready to dream big - there is a wide variety of vehicle types that New Zealand residents can finance.
Here are a few of them.
Whether you want a family-friendly SUV or an eco-friendly EV, or a mix of both, vehicle finance can help get you there.
Motorbikes are a popular option for commuters as well as enthusiasts who like to get out on the open road on the weekend.
Your vehicle doesn’t have to be one that’s travelling on the road. You could also finance a boat.
Are you dreaming of a getaway? Financing a caravan or motorhome could give you access to some amazing trips, taking in New Zealand’s stunning landscapes on your own terms.
Jet skis: Just up for some fun? Financing a jet ski will set you up for summer adventures.
If you haven’t applied for vehicle finance for a while – or maybe ever – you may be wondering how to go about it.
The good news is, at better finance™️, we are here to help you every step of the way.
Research: Before you begin, we’ll take some time to understand your situation and your needs. Not all lenders are the same, and we can help you to understand what your options may be
Make your application for finance: We’ll help you gather the documentation you need for the lender, such as proof of income, proof of address, identification and the details of the vehicle you want to buy.
Approval process: The lender will then assess your application. They’ll do a credit check and consider whether you have sufficient income, compared to your expenses, to cover the loan. They’ll let us know the outcome of this process, and we will work with you through the next steps.
Repayment terms: We’ll help you ensure you fully understand the terms of your loan, such as the interest rate you’ll pay, the term over which you’ll repay the loan and the payment structure.
Ownership: When a loan is in place, you’ll own the vehicle, but your lender may register an interest and have the vehicle as security until you repay the loan.
Vehicle finance is a significant decision, so it’s important to make it carefully.
Here are a few things to ponder to make sure that any loan is a good fit for you.
Interest rates and total loan cost: The interest on a vehicle finance loan usually means you end up paying more for the vehicle than the initial sticker price. Make sure you understand the interest rate you’re agreeing to pay and the likely total cost of the loan.
Loan terms and flexibility: Are you able to pay your loan back more quickly should you want to? What would happen if you needed to refinance the loan to a longer term to reduce the repayments? We can help you to work out how much room to move there may be with any lender you’re considering.
Insurance: It’s likely that you will need to insure any vehicle that is financed, at least until the loan is paid off.
Keep your vehicle finance budget-friendly: Your loan needs to fit within your budget, so make sure your repayments are realistic. You can use online loan calculators to check what the repayments might be and talk to us about your options.
Is a potential lender a good match? Here are a few ways you might be able to tell.
Check reviews: Online reviews can give you a good idea of what any vehicle finance lender might be like to deal with.
Know the fees you will pay: You’ll often pay a few additional fees beyond the advertised interest rate. We can help you to understand what these are.
Preapproval helps: If you can get preapproval for a certain amount, this will give you a good guide to what you can afford to spend on your new vehicle and help you to budget more effectively.
We’re here to help: Finance is our thing, so if you have any questions about any part of the process, let us know. We’re happy to help.
What is vehicle finance, and how does it work?
Vehicle finance refers to the process of borrowing money to buy a vehicle. The lender often uses the vehicle as security, and you repay the loan amount, plus interest, in smaller repayments over a set term.
What types of vehicles can I finance?
There are many types of vehicles you could finance, from cars and SUVs to bikes and jet skis.
What are the repayment options for vehicle finance?
We can usually help you to work with a lender to determine the best repayment structure for you. Loan terms are often anything from one to five years, although longer and shorter loans can be available. You might choose weekly, fortnightly or monthly repayments – and you can ask what the process might be if you want to make an extra repayment from time to time or pay the loan off early.
Is vehicle finance available for used vehicles?
Yes, you can usually use vehicle finance to buy used vehicles.
If you’re ready to get on the road – or water – a great place to start is by exploring your vehicle finance options with the team at better finance™️.
If you need more information, get in touch with us. We can help you to explore what’s available and what will get you where you need to be.