Want to know how you can submit the best possible car loan application? Well we got you covered. Below we have listed the top criteria that you will need whether you are looking at car loans in Auckland, Wellington or even car loans in Christchurch.
1. You will need to be at least 18 to get a loan in New Zealand – if you are not then maybe see if your parents or guardians can help you out. However if you are younger than 18 it may not be a good idea to be applying for finance at such a young age.
2. You will need to prove you can make the interest repayments – this means that you will have to show you are earning an income that is a significantly higher than the amount of interest you will have to pay per month. If you don’t have an income then don’t bother applying – it will be much harder for you to get what you are looking for.
3. The finance company will check your credit history. This means that they will be looking for a solid history of repayment and fiscal responsibility when it comes to managing your debt. If you are already deeply in debt and do not make interest payments on time it is very unlikely you will be able to get a loan. On the other hand if you are responsible about making regular repayments then you should be able to get the car financing deal without too much trouble.
4. You should look at insurance – Although this is sometimes not a requirement it is a great idea to get insurance. Imagine if you were in a crash – you had to pay total repair costs or you even lost your car completely but you had to keep making interest repayments month after month stopping you from getting a new car until you pay off your debt from the old one. This is not a desirable situation to be in and it is recommended to anyone to get insurance to make sure you are covered.
5. You must have a full drivers license. Of course you will need one of these anyway to actually drive your car but just make sure you have one by the time you apply for finance.
Those are all the criteria that are required for applying for a car loan in NZ. Big thanks to Stadium Finance for providing this information for us.