Common Car Finance and Car Loan Questions

Applying for car finance in New Zealand is a big decision and there are many things to consider when choosing the right car finance lender. We have put together a list of the most common car finance questions to help you understand the process when applying for car finance in New Zealand and what options are available to you.

If you read through these and still have questions, just call CarFinance2U on 0800 003 502 and one of our helpful staff will answer any questions or concerns you have.

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What is the difference between a ‘Car Loan’ and ‘Car Finance’?

At CF2U we see car loans and car finance as being the same thing. Traditionally, car loans were provided by banking institutions whereas car finance was arranged by non-bank lenders. As NZ’s leading online brokerage we make the process of getting you into a new car as simple as possible.

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Do I have to buy my car from you?

The great thing about coming to CarFinance2U for your vehicle finance is that you are able buy your new car from online sites such as Trade Me, Autotrader, Autobase and many more. This also includes car dealers and private sellers.

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How do I obtain a car finance quote?

At CF2U we have access to over 10 lenders throughout the country. This means that we can get the leading interest rates in NZ for our customers and their specific needs.

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Once I’m happy with the quote, how do I complete the deal?

Once you’re approved and you’ve found the right car, we’ll email you your contract and all you have to do is sign and return it to your sales consultant. They’ll check to make sure everything is in order and arrange for the funds to be paid to the seller.

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How do I apply for car finance?

At CarFinance2U we operate entirely online and so this means all you need to do is fill in the online application form. One of our sales consultants will contact you and help you through the process to have you in your new car in no time.

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How much can I borrow for my car?

At CarFinance2U we can arrange lending from $5,000. The maximum loan is determined by what the customer can afford.

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Can I apply with a learner’s licence?

Yes a valid NZ learner’s licence is acceptable for starting a loan application with CarFinance2U. We will also accept a restricted licence and obviously a full licence too.

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How old do I have to be to apply for a car finance?

You will need to be at least 21 years old to be eligible for one of our car loans. If you have a guarantor, we can consider someone who is younger.

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How long will it take for a decision on finance?

Decisions can be reached within 30 minutes once we receive the information we need from you.

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Do I have to buy my car from a particular car dealer?

In short, the answer is ‘No’. We are able to finance vehicles from most car dealerships, private sellers and websites. The only conditions we have are that the car be registered in NZ and is acceptable to our finance providers.

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Where can I buy my car from?

When you get approved with CarFinance2U you can virtually choose any car from anywhere in NZ. We can even arrange delivery. Simply tell your sales consultant what you need and they will do the rest.

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How do I choose my car?

Once you’re approved, your dedicated sales consultant is there to help you through every step of the process of getting your new vehicle. If you have one in mind, just let them know. If you are unsure they can search for the right vehicle to meet your needs.

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How long will it all take once I’ve found a car?

Once you’ve been approved and have found a vehicle that meets the lender’s requirements the money can be transferred to the seller in as little as 60 minutes.

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How long does it take to find out if I’m approved?

With our online systems we can provide an instant appraisal and confirm that you’ve been approved within 30 minutes. Special cases my take longer.

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How does the car finance process work?

Our online process is really quick and simple. Complete the online application form and one of our sales consultants will contact you. Then send through 30 days of bank statements and a copy of your driver’s licence. Once you’re approved you can choose a car up to the agreed amount. We can then send you a digital contract for you to complete on your mobile, laptop, desktop or tablet. We will then arrange payment of the funds into the seller’s bank account and you can pick up the vehicle. It couldn’t be easier!

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Will I need a car finance guarantor?

A guarantor might be requested if your affordability is low or you have had bad credit in the past. Applicants under 21 may be asked to provide a guarantor to improve their eligibility.

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How long will the car finance agreement be for?

CF2U loans typically range from 3-4 years. However, as every customer is different we can often arrange finance to suit whatever length of borrowing you need.

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How often do I have to make car finance repayments?

With the majority of our funding options you can choose to make your repayments either weekly, fortnightly or monthly depending on what suits you.

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What insurance products do you provide?

CarFinance2U is authorised by a number of NZ’s leading insurance providers. Popular products include Mechanical Breakdown Warranty, GAP Insurance Cover, Payment Protection Insurance and Motor Vehicle Insurance.

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What else do I need to provide when applying?

With most cases we require a copy of your current driver’s licence along with your last 30 days’ bank statements to confirm your salary.

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What else will I need to apply for a car loan?

Each of our funders is different but at a minimum we will need 30 days of bank statements and a valid driver’s licence. In certain instances we may require proof of address and/or information on any current or historic loans you may have had.
Valid NZ driver’s licence for identity
Proof of address such as phone or utility bill
Pay slip or bank statement to show income

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Do I need to pay a deposit?

It is possible to get approved with no deposit but it will depend on your credit profile amongst other factors.

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Do you offer no-deposit car loans?

Yes, we can arrange your car loan with zero deposit.

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I have bad credit – can I still apply?

We aim to help all of our customers so even if you have already been declined for finance in the past or recently at a local dealership we will more than likely be able to help. Our panel of lenders includes several sub-prime companies that will approve those with bad credit on their file so please don’t let this put you off.

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How does a bad credit car loan work?

A bad credit car loan works in just the same way as a typical loan in that you request an amount of money for your purchase and also the term in which you wish to repay the balance. Our specialist underwriters will assess your case and ensure it is matched to the right lenders. After all, what’s the point in saying we can do something if we can’t? By ensuring your profile is right for the lender you stand a much greater chance of being approved and it also reduces the number of needless credit searches carried out on you! Previous problems are not going to get you instantly declined either as we are well aware that applicants for this type of finance will have had some problems in the past.

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What do I need to get approved with bad credit?

Once you have completed the online application form on our website we simply need you to email 30 days of bank statements and a copy of your driver’s licence.

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Can I get a car loan if I have current or previous defaults?

It might be that you had problems several years ago or that you forgot to update your contact details when you last moved address. At CarFinance2U we can usually get our customers approved even if they have defaults. Obviously it will make a difference if it was only a couple of weeks before you applied but our lenders look at the merits of each case. If you have a repayment plan in place this can help and the more information we have the better.

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I was already declined elsewhere – should I bother?

With our car loan for bad credit products, each case is different and so this means even if you have already been turned away from your bank or another lender we can still help. Our expert team can usually identify any possible questions once your application is completed. Also by working with a panel of lenders we are able to have many more options for you compared to typical car loan companies.

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I have poor credit, can you still help me get car finance?

Yes – we operate with a number of specialist funders in NZ and so are well placed to help all customers to drive off in the car of their choice.

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I have won a car auction on Trade Me – can I buy it?

Once we have you pre-approved for your car loan, the great news is you are free to choose any car you like from car dealers and private sellers. This means you are free to use Trade Me and select your car from the comfort of your own home while we take care of everything else.

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Can I apply if I have been bankrupt or through a No Asset Procedure (NAP)?

Providing you have been discharged from your bankruptcy or NAP, we stand a very good chance of getting your case approved. We have found that customers who apply actually have a better current standing than say someone with just defaults. This is because the recorded defaults have been cleared and the applicant often has no further financial commitments as a result.

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Are you similar to Aqua Cars?

No – while we can offer a very high approval rate for those with poor credit ratings we are completely different to Aqua Cars. With CarFinance2U you are free to pick your own vehicle as we are in the business of finance brokerage and not car sales.

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MTF declined me – can you still help me get car finance?

We certainly can! Many of our customers approached MTF prior to coming to us. Our panel of funders covers virtually all levels of credit so while lenders like MTF only have one option, with CF2U we can match your application to one of our many lenders.

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Do you perform a credit check on all car finance applications?

As part of responsible lending our underwriters will always require a credit check for applications. At CarFinance2U we offer a fresh-start finance approach. Your credit check is used to confirm items such as your address for security and any defaults you may have.

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I have a small loan with Finance Now – can this be paid off too?

Yes, we can arrange additional borrowing on your new car loan to help pay off current commitments such as loans with providers like Finance Now.

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Can I trade in my car from Avanti Finance?

Yes – we can simply get you pre-approved for a new loan and then once you pick your new car and a trade-in price has been agreed with the dealership, we can settle the difference owed to Avanti Finance for you.

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Where are you based? Do I need to come to your office?

Being an online business we can offer our services across NZ without seeing you face to face. We have virtual offices in Auckland, Wellington, and Christchurch. We are headquartered in Gisborne so if you’re in the neighbourhood, please drop in.

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