How to Best Finance Your Motor Vehicle in Greater Wellington

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When you’re ready to buy a used car, there are multiple options in Wellington car financing that you can consider.

A car financing company

You’ll first need to apply to a car financing company. Once your car loan is pre-approved and you know how much exactly you can spend, you can go ahead and choose a suitable car.

Car financing companies offer a number of payment plans to suit borrowers’ requirements perfectly. Oxford Finance, for instance, offers flexible payment alternatives and personalised support throughout the process. The payment term is also short (one to four years), which means while you pay more every month, the accrued interest and overall loan cost is less. With a structured process and Oxford Finance representative to guide you – the lending process goes smoothly.

Make sure you go through all the terms and conditions before you sign a contract. These include pre-payment, collateral, insurance and options available to you in the event that it’s difficult to meet the scheduled loan payments. Note the fees and charges applicable to consumer contracts. These include fees for account maintenance, establishment, dishonoured payments and reminder letters or text messages.

A dealership

You’ll find several used car dealerships as well as new car dealerships selling used cars in Wellington, Kapiti and Porirua – that offer financing. They usually offer a longer loan term (up to six years), so you can end up paying a substantial amount in interest. With a dealership loan, you are limited to purchasing a car from that dealer. In contrast, motor vehicle finance allows you to explore used cars from private owners, used car websites, auctions and even mechanics who may be running an ancillary business selling pre-owned vehicles.

Dealerships tend to pass on their overhead costs to customers. Keep an eye on extra costs such as ‘dealer origination’ or ‘dealer delivery’ fees, which are charged for undertaking loan paperwork.

Assess the quoted price to avoid paying more than what the vehicle is worth. Should the dealer offer a zero-interest loan, look for hidden fees and double-check that you’re not paying an unjustifiably large sum for the total cost of the car.

Last, but not the least, make sure that the car is still covered under the manufacturer’s warranty. Also appraise the retail price, which is the amount you will pay when you buy a used car from a dealership. The retail price factors in the dealership’s profit margin.

An increasing number of consumers are buying used cars online. You can check out used car websites that either provide links to dealer websites or the contact information of private sellers. Another option is an online auction or to obtain car finance online. Before signing up with an auction site, make sure you understand how an auction works.

Four tips for first-time car buyers

1. Bargain hard. Don’t shy away from bargaining. If the private seller or dealership isn’t prepared to push down the price, see if they can throw in some optional extras.

2. Negotiate on multiple cars at once. If you’re shopping at a dealership or mechanic, don’t bargain on just one car, look at four or five vehicles. Negotiating on all of them will determine where you can find the best deal.

3. Look beyond superficial features. Making a buying decision based on the sound system or leather upholstery alone may be short sighted. Delve deeper and look at safety features, fuel consumption and engine reliability.

4. Seek out extended warranties. An extended warranty extends the coverage period on a standard warranty, and is aimed at owners who intended to drive their vehicle for several years.

Let the experienced team at Oxford Finance get you the best car finance deal in Wellington. Visit to find out more.

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