Car loans

Buying a new or used car is a major purchase and you should understand the fees and interest rates you will pay if you finance the purchase.

Firms offering such finance have a duty to disclose all the necessary detail.

The problem is that most car finance conversations happen after you have found the car you want, and the disclosures then make it hard to gracefully do a proper comparison when the 'deal is on the table'.

This page will help you understand where the market is before you talk about finance with a car dealer or seller.

Car loan interest rates always seem higher than home loans, and the temptation is to add to your mortgage for the car. But remember a mortgage can last for decades, whereas a car loan is usually 48 months or less. The shorter the loan term, the less total interest you are likely to pay (despite the interest rate). Use our calculator here to compare.


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Institution Product Plan Notes Interest rate %
ASBPersonal LoanSecured by car14.95
Co-operative BankVehicle LoanSecuredfrom12.95
KiwibankVehicle LoanSecured by carfrom $3,00012.99
WestpacPersonal LoanSecured by car13.65

Credit Unions

Institution Product Plan Notes Interest rate %
First CUCar LoanSecured9.99
NZCU BaywidePersonal LoanSecuredfrom13.95
Personal LoanSecuredpremium rate from9.90
Police CUPersonal LoanSecured9.95

Finance Companies

Institution Product Plan Notes Interest rate %
AA FinanceCar LoanSecuredfrom10.95
Boat LoanSecuredfrom10.95
Avanti FinanceCar loansSecuredFrom15.95
Basecorp FinancePersonal LoanSecured16.00
Finance DirectCar / Boat LoansSecured by carless $20,00011.95
Car / Boat LoansSecured by carmore $20,0009.95
FinancepointCar/Boat LoanSecuredNew12.95
Car/Boat LoanSecuredUsed13.95
Financial Holdings Vehicle LoanSecuredfrom12.95
GE Money Car LoanSecuredfrom12.99
John Deere CreditTractorsSecured4.75
Medical SecuritiesVehicle Loan (Membership Criteria Apply)Secured9.95*
MTFVehicles loanSecuredfrom10.95
NZ LoanCar and Boat LoanSecuredFrom12.95
Paraloanfor people with physical disabilitiesSecuredFrom6.60
UDC FinanceStandardSecured$5,000 to $25,000 from12.95
StandardSecuredAbove $25,000 from11.95