Driving your own car is a great feeling, but finding the right car that fits your budget and motive is not such an easy task. After having your own house buying a new or used car for sale is the biggest decision in life. It therefore makes sense to consider a used car rather than a new one if you lack behind in monetary terms. This is especially true keeping in mind the associated charges, consequent expenditure, and depreciation value. A used car will save you from burning a hole in the pocket as well as from compromising on the quality.
Today, the used-car market in New Zealand is flourishing, thanks to their affordability and easy availability of second hand car finance. The arrival of organized car finance companies in the market has augmented people’s preference in used cars as they ensure that the used cars are certified and well-maintained.
How to Get a Used Car Loan in New Zealand?
Availing second-hand car finance is simple and convenient. You must check eligibility criteria before having a second hand car.
Benefits of Used Car Loan from reputed car finance company
- High Loan Amount
To buy a second hand car, you may avail a loan of higher amount with reputed finance company after checking your credit score and eligibility. - Unmatched Interest Rates
Though interest rates for used cars are higher owing to the risks associated for both the buyer and the lender. Compare interest rates offered and choose the best - Flexible Terms
It offers flexibility as it lets you decide on your loan amount, loan tenure and EMI period. You can also opt for a payment method as per your convenience. - Minimum Paperwork
For a used car loan, almost the entire process can be conducted on the online platform. Besides, you get speedy approvals once the application and document have been verified.
New cars might smell great; however, from the initial value to the long-term spending to loan availability, buying a second hand car is the best economical option you can avail.
Must avoid some common Car loan mistakes
Among all the efforts one has to put, finding the right financing option or the car loan is very significant. Cars are always costly so are the mistakes of car loans. Choosing the wrong financing partner or being unaware of terms and conditions may hurt your pocket in times to come. In this article of car loan we have also summarized some common mistake points that you should avoid before opting a car loan.
- Not checking the Credit Score
Must check your credit score before applying for car finance.
- Not comparing the loan options
Always compare the interest rates and terms & conditions of different institutions.
- Keeping the tenure of repayment loan too long
The car value, especially the new car value depreciates very soon. So keeping the tenure longer will hurt in two different ways. Firstly, the cost of borrowing will be higher because of the compound interest rate and secondly, by the time you end up paying the EMIs, the value of the car will depreciate to great extent in the market.
- No Downpayment
Zero Down payment is sometimes burdening your interest amount heavy, so try to give some initial amount.
- Financing for add-ons and luxury attachments of car
The car needs a number of add-ons such as parking sensors, car body cover, seat cover, music system etc to make car more luxurious and comfortable. But adding on them without prior finance calculations cat over burden your pocket or loan amount.
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