Posted in Loan Rates, Vehicle Loan Help

Understanding Vehicle Loan Rates


Understanding vehicle loan rates

Owning a vehicle in New Zealand is easy. There are lots of options for you to choose from depending on your financial ability, such as buying by cash, seeking an auto loan or even trade-in if you want an upgrade. Before attempting to borrow money to buy a car, you need to understand vehicle loan rates in New Zealand.

Vehicle loans Interest rates nz
Vehicle loan Interest rates nz

Vehicle Loan Rates

A vehicle loan is a form of credit given to a borrower by a car dealer or financial institution to buy a car. The car may be new or used.
Vehicle loan rates are the fees charged to a debtor for borrowing money. The vehicle loan interest rates here in New Zealand vary. It is wise to do thorough research so that you get the lowest and the best vehicle loan rates possible.

How is the vehicle loan calculated?

An automobile loan calculator is used to estimate the amount of money you will be paying for the loan. Whether weekly, bi-weekly or monthly depending on your preference. You key in the amount of money you intend to borrow, the duration of borrowing (in months), and the interest rate.

Please note that the car loan calculator will only give you an estimated figure. The vehicle loan calculator does not consider some charges which affect the overall amount paid at by the end of loan term. These charges include taxes, documentation fees and registration fees.

How is the vehicle loan calculated?

Understanding Vehicle Loan Rates for New and Used Cars

Used vehicle loan rates

Used vehicle loan rates: are rates charged on loan given to an individual seeking to buy a used car. The amount of the money financed is usually lower, but this is not always an advantage to the borrower.

The interest rates charged for vehicles on used car loans are very high.  Used cars are considered to be a liability to the financier. Due to their high maintenance attracted by frequent breakdowns and the need for spares. It is likely to be very expensive for the debtor and may cause them to default altogether.

For this reason, the lender will charge high vehicle loan rates on the used cars to cover themselves. Lenders in New Zealand usually prefer to give 2 or 3 years on used vehicles, and some can give up to 5 years but not more than that.

New vehicle loan rates

New vehicle loan rates: are rates offered on loan to buy a new vehicle. While the amount of money borrowed may be higher, the new cars are less of a liability to the lender as the new cars have 2 or 3 years of warranty.

It covers the lender from the risk of losses as in case of default, as they can sell the vehicle and recover the amount owed. For this reason, the vehicle loan rates charged on new vehicle loans is lower compared to the used one.

New Vehicle Loans

Factors that affect vehicle loan interest rates:


Factors that affect vehicle loan interest rates:

Loan term: this is the duration the loan tenure will last. Usually counted in months. Longer term attracts higher interest rates for vehicle loans.
Loan amount: this is the amount being borrowed to purchase a car. The more the loan, the higher the vehicle loan interest rates. If your loan amount is high, it is advisable to pay a substantial down payment to bring down the loan amount.
Credit score: the higher your credit score, the better chances for you to get lower interest rates for the vehicle loan.

Tips to getting lower interest rates for vehicle loans:

Research: various lenders in New Zealand offer different interest rates for vehicle loans. Doing research can help you land low-interest rates for vehicle loan hence saving you money.
Down payment: settling a substantial amount of money as down payment reduces your overall vehicle loan rates on borrowed amount and the monthly payments.
Take short-term loans: Short loan period attracts high installments, but in the long run, saves you a lot of money.

Vehicle Loan NZ

How to ensure you get the best deal.

The best and easiest way is to check the total cost of the loan. You will achieve this by adding establishment fees + origination (broker/dealer) fees + total payments + termination fees (if any). This sum will give you the total amount of money you will have paid at the end of the loan tenure.

Make comparison for three or four lenders and the one with the lowest figure will be the cheapest and the best.

Vehicle loan rates in New Zealand

Vehicle loan rates in New Zealand can be very affordable and manageable; all you need to do is find the right lender to lend you the money. Now that you have vast knowledge on vehicle loan rates, you are ready to start shopping. Good luck!

Posted in Loan Rates

Vehicle Loan Rates

New Zealand Vehicle Loan Rates

Vehicle Loan Rates

If you are looking to get a vehicle loan in New Zealand, then getting the best vehicle loan rate is crucial. Getting a low interest rate can save you thousands of dollars in the long run, so make sure to go for the lowest interest rates when getting a vehicle loan. Do your research and find out who is offering the best car loan rates before getting the loan. 

Vehicle loan Interest rates nz
Vehicle loan Interest rates nz

Current Vehicle loan Rates

Here at vehicle loans we have done some research and found out some of the best vehicle loan providers in New Zealand and got their interest rates. All the rates are subjected to change and depends on your financial situation. Be sure to check the loan rates with the loan providers before getting the loan. 

Vehicle Loan Interest Rates





Personal Loan

From 12.95%

Co-operative Bank

Vehicle Loan

From 9.90%

Heartland Bank

Car Loan

From 9.75%


Vehicle Loan

From 12.99%


Personal Loan

From 14.00%


Personal Loan

From 13.39%

Lending Crowd

Personal Loan

From 13.28%

Advanti Finance

Car Loan

From 13.95%

AA Finance 

Car Loan

From 9.95%

Finance Direct 

Car Loan

From 14.00%

Finance Now

Car Loan

From 12.95%


Car Loan

From 12.99%


Car Loan

From 9.75%

MTF Finance

Vehicle Loan

From 9.75%

NZ Vehicle Finance

Car Loan

From 8.90%


Car Loan

From 9.35%

Loan Rates and Fees

"Make sure to find out the total cost of the loan before you sign any paperwork. Find out the fees, rates and any additional loan cost before agreeing to the loan. "
James May
Loan Specialist
Posted in Loan Calculator, Loan Rates

Vehicle Loan Calculator


Vehicle Loan Calculator in New Zealand

Before visiting a loan provider, it is good to know your financial position. Having a clear picture of how much you can afford prepares you mentally for what to expect when applying for a vehicle loan.

Vehicle loan calculators available online; they are efficient easy to use. Loan providers in New Zealand have various types of vehicle loan calculators, but all their concepts are the same.
A vehicle loan calculator is an online tool used to estimate loan amounts and monthly repayment amounts.

Vehicle loan calculator New Zealand

How vehicle loan calculator works:

Depending on the estimate you require, online vehicle loan calculator performs two primary functions:

  • To calculate your monthly payment: for this function, key in the vehicle price, the number of months for repayment, interest rate, and payment plan (weekly, fortnightly or monthly) then make the calculation. The figure you obtain will be the estimated amount you will pay as instalments.

  • To calculate how much you can borrow: this function is convenient for someone who knows how much they can manage to pay monthly but do not know how much they are eligible to borrow. Input the preferred monthly payment, the number of months to repay the loan, interest rate and payment plan (weekly, fortnightly or monthly) then make the calculation. It will give you an estimated amount of credit you could afford to borrow.

How To Calculate Vehicle Loan Using Vehicle Loan Calculator:

  • Determine how much to borrow; negotiate the price of the car you intend to buy.

  • Visit at least three car dealers to ensure you get the best price for the vehicle you are buying.

  • Evaluate how much cash you have at hand to pay as down payment. Paying a down payment will reduce your loan significantly; hence decreasing your monthly payments.

  • After you establish these two steps, deduct the amount of down payment from the negotiated car cost. The difference will be the amount you need to borrow (principal amount).

  • Once you obtain the principal amount; open an online vehicle loan calculator to proceed with the calculations. Key in the principal amount, loan tenure (in months), and interest rate (quoted in the preapproval) then make the math. You will establish how much money in total you will pay at the end of the loan term, the total amount of money paid as interest at the end and how much you would be paying each month.

Some calculators offer amortization schedule which clearly shows you how the payment reduces until the term is over. Amortization schedule is a detailed illustration showing how payments are spread evenly over the loan term.
How is the vehicle loan calculated?

What Is Involved In The Calculation Of Vehicle Loans:

Co-sign Vehicle Loans

Calculation Of Vehicle Loans

Apart from the interest rates, there are fees that vehicle loans attract. The lender discloses these charges upon request for the loan.
Some of these charges include:

  • Taxes: tax is the amount of money charged by the government upon purchasing the vehicle. Add tax to your principal amount to determine the actual loan amount to be paid. The tax affects the loan amount but does not change the interest rate.

  • Dealer fees: also known as documentation fee. Is the amount of money dealers charge for the paperwork involved in loan preparation and filing.

  • Application fee: is a charge paid upon opening your vehicle loan. Also known as set-up fee.

  • Late fee: an amount of money charged on top of your monthly payments for failing to pay on time.

  • Monthly loan servicing fee: is a fee charged for the sake of managing the vehicle loan and keeping payment record.

These are just a few of the fees charged on loans. Make sure that your lender discloses all the fees charged on your vehicle loan. It is advisable to ask for clarifications on the charges you do not understand before signing the documents.

Vehicle loan Calculator

When using a vehicle loan calculator, it is important to specify whether you are estimating for new or used vehicle loans; as these have different rates.
This article is a guideline on how to calculate vehicle loan. It is important to note that vehicle loan providers in New Zealand have different terms and regulations. The vehicle loan calculator also does not give accurate figures as it does not factor in fee charges.

Posted in Loan Rates

How To Calculate Vehicle Loan Interest Rates

Latest Vehicle Loan Interest Rates

Loan Rates

One of the most important factors that affect vehicle loans is the loan interest rates. This will determine how much extra money you have to payback when paying back your car loan. A small percentage diffrence could mean thousands of dollars over time. Fins out more on how to get the best deals on vehicle loan interest rates in New Zealand

Interest Rates Vehicle Loans

Current Interest Rates

Find out the latest interest rates offered by the leading vehicle loan providers in New Zealand. We have sourced out their current loan rates for you to compare and find the best rate and lender to choose. Find out more on the latest car loan rates now and get the best deals to suit your needs. 

How to Calculate Vehicle Loan Rate

"Vehicle loan rates will differ from one lender to another. Make sure to compare all the rates from different lenders before getting the loan "
James May
Loan Specialist