Ready to buy a new car in New Zealand? Before the excitement of choosing the make, the model, and the colour, one of your first steps should be choosing a car loan. While researching and applying for a car loan may sound tedious and tricky, there are a few easy steps that can simplify the process and make your search for a perfect car more enjoyable.
- First, it’s time to take a look at your finances. Before you can choose a car, you need to know how much money you can afford to spend. Review your current budget with care and determine what you can afford before looking into your car finance options in NZ. Your car loan should be able to fit into your normal budget without having to change it drastically. Reviewing your budget can also help you identify expenses that you can reduce, or cut out completely, allowing for a little extra in your car loan budget.
Take a look at your weekly coffee expenses, lunch outings, and after-work excursions as a place to start for cutting back expenses. Additional ideas to help you save even more are located here. Even small expenses like these can add up quickly, and eliminating them can help get you to your dream car.
It’s also important to think about the future when reviewing your budget. Your car loan will be a part of your budget for some time, and it’s a good idea to factor this in when looking at your long term budget plans.
- Along with your budget, it’s important to review your credit rating so there are no surprises when applying for a car loan in NZ. You can get your credit score report by visiting the website annualcreditreport.com. If you’ve got some flexibility in your timeline to buy a car, knowing your credit rating ahead of time can allow you to raise your score prior to applying for a car loan. The higher your score, the better car financing options you’ll have.
Even if you do not have flexibility and are looking to purchase a car right away, it is still helpful to know what to expect when applying for a car loan. A low credit score does not always mean you cannot qualify for great car financing options, but a few things you can do to help widen your options is to make your credit card payments on time, pay down your balances as much as possible, and close any unused credit accounts. These simple fixes can help quickly raise your credit score to help you get the best car loan. You may also want to review this list of additional tips for increasing your score.
- Next, start researching your options for loans. Car loans in NZ can come in many different forms, and you will want to determine which fits best with your budget.
The main difference in car loans is the repayment terms. Most terms run one to three years, but there are many options available to you depending on your needs. This is why it is important to know what your current and future budget is when deciding your loan term. A shorter term loan will mean a larger payment, but will result in less interest paid over the long run. Longer term loans may mean more paid in interest, but can accommodate a smaller budget and buyers with a lower credit rating.
Oxford Finance, located in Wellington, is a company known across NZ as a leader in the car finance industry, and can help you easily find the car loan that you are looking for and the repayment term length that fits your needs. Oxford Finance makes it incredibly easy to apply and be on your way to an exceptional car finance rate in NZ.
You should also know what interest rates you qualify for. This is where knowing your credit rating comes in handy. Your credit rating is correlated with the rate you can expect to qualify for, and knowing your approximate interest rate will ultimately help you in determining your budget. You can receive fast and accurate interest rate information from Oxford Finance to help you plan. Visit their website at www.oxfordfinance.co.nz to make an enquiry today.
You may also want to consider pre-arranging your car finances with Oxford Finance. Pre-arranging means that you are equipped with knowing the exact amount of money you have to work with. It also eliminates the possible disappointment of finding the car you’re looking for, only to realise your finance options don’t match up with the price of the car.
Finally, remember to keep these few additional tips in mind:
- Have an open mind about the type of car you want to buy, especially if your credit rating or your car loan budget is not as flexible as you would like. New cars may have lower interest rates, but if you have done your research, it is quite possible to find a great deal on a used car as well.
- Take your time reviewing the fine print and make sure you really understand the car loan. It is always best practice to be fully informed before making a big decision such as buying a car. Oxford Finance is always there to walk you through your application, and is happy to provide exceptional and personalised client care to ensure you are comfortable and informed about your car loan.
Buying a car in NZ is exciting and should be an enjoyable experience, and it can be when prepared with the few simple steps outlined in this article. Determine your budget, cut back on expenses, check out your credit score, and review your loan options and interest rates, and you’ll be more than ready to move on to choosing the perfect car.