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New car loans

Find the right finance to get on the road in a new car for less.

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If you’re looking to buy your first car or upgrade to a new one, a car loan can help you finance your new purchase. A variety of different car loans are available from banks, credit unions and dealerships. By comparing your options and knowing what features to look for, you can find the best deal for your situation. Find out all about new car loans in our guide below.

Better® - Secured Vehicle Finance

Better® - Secured Vehicle Finance

From

6.95 % p.a.

rate

  • Secured loans at low rates

Better® - Secured Vehicle Finance

Apply today and get a fast decision on a secured vehicle loan up to $250,000.

  • Interest rate from: 6.95%
  • Min loan amount: $3,000
  • Loan term: 12 - 60 months
  • Fees: Establishment fee: $195 - $695 depending on lender
  • Monthly service fee: $0 - $10 depending on lender
  • Personalised interest rates based on your circumstances
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New car loans comparison

Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee
The Lending People Car Loan
6.99% - 26.99%
$2,000
$75,000
1 to 7 years
$50 - $695 depending on lender
Eligibility: Be 18+, an NZ citizen or permanent resident, in employment and earning at least $500 per week.
Secured and unsecured car loans of up to $75,000 from a variety of reputable lenders.
Kiwi Car Loans Secured Loan
6.85% - 23.95%
$3,000
$500,000
1 to 5 years
$195 - $995 depending on lender
Eligibility: Be 18+, an NZ citizen, permanent resident or have a work visa, and have an income of least $500 per week.
100% online secured car loans from $3,000.
Motor Vehicle Finance Secured Vehicle Loan
6.95% - 23.95%
$3,000
$150,000
12 - 60 months
$195 - $695 depending on lender
Eligibility: Must be 18+, be an NZ citizen/permanent resident, and have an income of least $400 per week.
Secured vehicle loans from $3,000.
Better® Secured Vehicle Finance
6.95% - 23.95%
$3,000
$250,000
12 - 60 months
$195 - $695 depending on lender
Eligibility: Must be 18+, be an NZ citizen/permanent resident, and have an income of least $400 per week.
Secured vehicle loans from $3,000.
Max Loans Secured Vehicle Loan
8.35% - 27.90%
$1,000
$100,000
1 - 7 years
$195 to $1,500 depending on lender
Simplify Secured Car Loan
6.50% - 12.50%
$5,000
$500,000
12 - 60 months
$276
Eligibility: Must be 18+, a New Zealand resident or permanent citizen and have an income of at least $500 per month.
Secured vehicle finance from $5,000 to $500,000.
MTF Finance Secured Car Loan
8.45% - 20.45%
$2,000
$100,000
3 - 60 months
$376
Eligibility: Must be 18+, be an NZ citizen, resident or have a work visa, and have a regular source of income.
Secured car loans from $2,000.
LoanSpot Secured Vehicle Loan
6.95% - 23.95%
$3,000
$100,000
12 - 60 months
$195 - $695 depending on lender
Eligibility: Must be 18+, be an NZ citizen/permanent resident, and have an income of least $400 per week.
Secured vehicle loans from $3,000.
Pioneer Finance Secured Car Loan
11.95% - 27.95%
$1,000
$100,000
Up to 7 years
$270 - $780 depending on size and security
Eligibility:Be 18+ (may need a guarantor); be a NZ citizen, resident or have a relevant work visa; have a regular source of income.
Secured vehicle loans from $1000 - $100,000.
Lending Crowd Secured Car Loan
6.49% - 16.78%
$2,000
$200,000
3 or 5 years
$250 - $1,450 depending on the amount borrowed
Eligibility: Be an 18+ NZ permanent resident, have a good credit history and collateral/security.
Borrow $2,000 to $200,000 for your chosen vehicle. 100% online with no paperwork or early repayment fees.
CarFinance2U Car Loan
8.95% - 23.95%
$5,000
N/A
1 - 5 years
N/A
Eligibility: Be at least 22 years old, have a valid NZ driver's licence and be and NZ citizen or permanent resident.
With a CarFinance2U secured or unsecured car loan you could get pre-approval for your next car in 30 minutes.
CarPow Secured Car Loan
8.95% - 23.95%
$3,000
$100,000
N/A
Up to $495
Eligibility: Be 18+, hold a New Zealand Driver’s licence, and earn at least $500 per week.
Secured car loans from $3,000.
Nectar Unsecured Car Loan
8.95% - 29.95%
$1,000
$20,000
6 months - 4 years
$240
Eligibility: Must be 18+, an NZ citizen or permanent resident, have an income of $400 per week or more (after tax) and a stable credit history.
Unsecured car loans from $1,000 with payouts made within one day of approval. Applications entirely online.
Stadium Finance Secured Vehicle Loan
7.95% - 19.95%
$3,000
$100,000
Up to 60 months
Varies
Eligibility: Must be 18+ and must have disposable income of $300 per week
Secured loans from $3,000 and funds paid within one day of approval.
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Compare up to 4 providers

How new car loans work

The majority of new car loans are secured loans, meaning the lender has the right to repossess the vehicle if you default on the loan. While this is a steep price to pay, it also means you get a lower interest rate. Getting a new car loan doesn’t mean you have to buy a car from a dealership, as the majority of lenders accept a vehicle up to two years old from a dealer or a private sale.

When you apply, you and your car need to pass eligibility criteria. Depending on how strict the lender is, you may need to use the entire loan amount on the vehicle, although some lenders may allow you to borrow some extra money to cover the costs that come with buying a new car. You need to repay the loan over the specified loan term.

Types of new car loans

  • Secured car loan.
    With a secured car loan, the bank can use the new car as security if you default on your payments. The interest rate is lower than the one you would get with an unsecured loan because there is less risk for the lender.
  • Unsecured car loan.
    An unsecured loan works a little differently, as the bank or loan company does not hold the new car you are purchasing or any of your assets as security. If you default on your personal loan repayments, the bank has little power to do anything about it, except send reminders, or when the default becomes serious, send a debt collector to try and obtain the money. Your assets are safe, but the lender could take you to court.
  • Variable rate car loan.
    A variable rate means the interest rate fluctuates according to the Reserve Bank of New Zealand’s cash rate, while a fixed rate remains the same for the length of the loan’s term. The variable rate might be cheaper now, but it can and will fluctuate with market interest rates, which means your repayments increase if the rate goes up. Your payments may also come down if the rate starts to fall.
  • Fixed rate car loan.
    By comparison, a fixed rate loan might initially be a bit higher than the variable rate, but you know your repayments won’t change throughout the loan term. If the rates increase over the next few years, it is possible that the fixed rate may end up being lower than the resulting variable rate.
  • Bad credit car loan
    If your credit file isn’t quite as stellar as you’d like and you still need a new car, you can consider a bad credit secured car loan. These loans come with a higher rate of interest due to the increased risk factor.

How to compare new car loans

Listed below are the standard factors you should consider when comparing new car loans.

  • Interest rate and comparison rate.
    You need to compare rates to check how competitive a loan is. The comparison rate includes additional costs, such as application fees; the cost of the car valuation; legal fees and any other yearly or monthly charges that the loan could include.
  • Other fees and charges.
    Some charges are excluded from the comparison rate, such as early termination fees. The loan company should inform you of all possible costs before you finalise your loan agreement.
  • Redraw facility and extra repayments.
    These extra features can help you repay your loan earlier than expected. However, be mindful that costs related to redraw fees or early repayment fees and any cost savings, including fee waivers, are not part of the comparison rate and could have an influence on the loan’s overall cost.
  • Eligibility and suitability.
    Are you eligible for the new car loan and does your car meet the criteria set by the lender? You should check the minimum, and maximum loan amounts on offer as well as the loan terms to ensure the loan is right for your needs.

The benefits and drawbacks of a new car loan

  • It helps you make your new car purchase.
  • New cars are typically easier to finance so you may find a lender easily.
  • The price of the car is often higher than the resale value of the car because all loans attract interest and new cars can lose market value quickly.

Things to be aware of with new car loans

  • Once you decide to take out a new car loan, it is essential that you establish all the costs associated with the car loan with the provider. The obvious one is the interest rate, but there are other costs. These may vary depending on the lender.
  • Fixed interest rates are prevalent among car loan companies, and they do not change throughout the loan period. If you choose a variable interest rate, the loan provider could alter the interest rate at any time depending on the Reserve Bank rates.
  • You should negotiate early repayment fees and redraw fees with the loan provider just in case your situation changes during the loan period.

Frequently asked questions about new car loans

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