dealership car financing in New Zealand

Dealership Car Financing

Beginner Guide to

Dealership Car Finance

Dealership car financing in New Zealand is a great way to get the vehicle you need. There are many dealerships that can offer you financing options, so finding the right one for you can be a challenge. Here are some tips to help you find the best dealership car financing in New Zealand.

Should You Get A Car Loan From The Dealer?

There are many things to consider when purchasing a car, and financing is one of the most important. There are a few different options for financing a car, and one is to get a loan from the dealer. There are a few things to consider before doing this

  • The first thing you need to do is research the different dealerships in your area. You can do this by searching online or by asking friends and family for recommendations.

  • Once you have a list of potential dealerships, you can start to narrow down your choices by looking at the interest rates they offer and the terms of their financing.

  • It is also important to consider the down payment you will need to make. Most dealerships will require a down payment of 20 percent or more.

  • If you have a trade-in, this can be used as your down payment. You should also consider the monthly payments you can afford.

  • Once you have found a few dealerships that you are interested in, you can start to negotiate the terms of your financing.

  • Be sure to get all the information in writing so there are no surprises later on.

  • You should also make sure you understand the total cost of the loan, including any fees and charges.

  • If you are not comfortable negotiating your own financing, you can always use the services of a car broker. A car broker can help you find the best interest rates and terms for your car financing. They will also be able to negotiate with the dealership on your behalf.

  • When you have found the perfect dealership and financing option for you, be sure to read all the fine print before signing any paperwork. This includes the interest rate, the term of the loan, and any other fees and charges that may apply.

By following these tips, you can be sure to find the best dealership car financing in New Zealand for your needs. With a little bit of research and patience, you can get the vehicle you need without breaking the bank.

The Pros and Cons of Car Financing In New Zealand

The Pros and Cons of Car Financing In New Zealand :


1. You can potentially get a lower interest rate than if you finance through a traditional lender.

2. The process is often quicker and easier than going through a bank or other traditional lender.

3. You may be able to negotiate a better deal on your car purchase if you finance through the dealership.


1. You may be required to make a larger down payment than if you finance through a bank or other traditional lender.

2. The interest rates offered by dealerships are often higher than those offered by traditional lenders.

3. You may be required to pay more fees when financing through a dealership.

The Five Most Important Things to Know about Car Financing In New Zealand

1. The interest rate is important, but it’s not the only factor to consider when financing a car.

2. You can get a lower interest rate by shopping around and comparing offers from different lenders.

3. The size of your down payment will affect your monthly payments and the total amount of interest you pay over the life of the loan.

4. The length of the loan term will also affect your monthly payments and the total amount of interest you pay.

5. You should consider all of these factors when choosing a car loan that’s right for you.

How to get the best deal on dealer finance

Dealer finance can be a great way to finance your new car, but it’s important to make sure you get the best deal possible. Here are a few tips:

1. Know your credit score Your credit score is one of the most important factors lenders will consider when determining your interest rate. The higher your score, the lower your rate will be. So, before you start shopping for a new car, check your credit score and report so you know where you stand.

2. Shop around When it comes to dealer finance, it pays to shop around. Talk to multiple dealerships and compare interest rates, terms and conditions before making a decision.

3. Negotiate Just because a dealer offers you finance doesn’t mean you have to take it. If you’re not happy with the interest rate or terms, don’t be afraid to negotiate.

4. Read the fine print Before signing any finance agreement, make sure you read and understand all the terms and conditions. Pay close attention to things like the interest rate, repayment schedule and any fees or charges that may apply.

3 Things to always remember when negotiating dealer finance

1. The dealer is not your friend. They are there to make a profit, and they will often try to do so by offering you a higher interest rate than you could get elsewhere.

2. Always negotiate the interest rate. The dealer will usually start high, so don’t be afraid to counter with a lower offer.

3. Don’t be afraid to walk away if the dealer won’t meet your terms. There are plenty of other dealers out there, and you don’t need to finance through one that isn’t willing to work with you.

What to look for in a dealer finance agreement

When you’re taking out dealer finance, it’s important to keep an eye out for any unfair terms and conditions in your contract. If you’re unsure about anything in your agreement, make sure you ask the dealer to explain it to you. You should also:

  • Check the interest rate on the loan and make sure it’s the same as what was advertised.

  • Check the length of the loan and make sure you’re happy with it

  • Make sure there are no hidden fees or charges in the contract

  • Make sure you’re happy with the terms of the early repayment fee If you’re not happy with the dealer finance agreement, you can always walk away from the deal.

5 Traps to avoid when taking out dealer finance.

While dealer finance can be a cost-effective way of funding a new car purchase, it’s important to consider the various fees and charges that can apply. Here are five traps to avoid:

1. Balloon payments Most dealer finance contracts include a balloon payment, which is a lump sum payable at the end of the loan term. If you can’t afford to make this payment, you may have to refinance or sell the car at a significant loss.

2. GAP insurance GAP insurance is designed to cover the difference between the balance of your loan and the market value of your car should it be stolen or declared a total loss. While this cover can provide peace of mind, it’s important to compare the cost of the premium with other providers to ensure you’re getting good value for money.

3. Extending the loan term If you extend the loan term, you’ll end up paying more interest over the life of the loan. While this may make your monthly repayments more affordable, you’ll pay more in the long run.

4. Making only the minimum repayments If you make only the minimum repayment each month, you’ll end up paying more interest and taking longer to repay the loan.

5. Making late repayments If you make a late repayment, you may be charged a late fee. This can add to the cost of your loan and make it more difficult to repay.

7 Questions to ask before signing a dealer finance agreement.

1. What are the interest rates?

2. What are the monthly payments?

3. What is the term of the loan?

4. What is the balloon payment?

5. What are the dealer fees?

6. What is the total cost of the loan?

7. What are the consequences of defaulting on the loan?

Dealership Finance In NZ

Dealership car finance can offer lower rates and better terms than what is typically available from other lenders. However, it is important to compare offers from multiple dealerships and lenders to ensure you are getting the best deal possible. Be sure to read the fine print and ask questions so you understand all the terms and conditions before signing any paperwork.

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