Finding the Best Car Loan Interest Rates

Interest rate is the amount of interest you pay on your loan. Interest rates on car loans in New Zealand vary tremendously so make sure you shop around before you choose. Lower interest rates are expected if the loan is secured by your car. This means that if you are unable to meet your repayments the car loan company or lender can sell your car to recover their damages. Due to this advantage lenders can offer you very less rates as compared to the market rates.

Another way to get cheap interest rates is if you have an existing relationship with the employer.

Checking the Fee and Charges for Car Loans in New Zealand

Every car loan you get has some fees and charges attached to it. The document the lender will provide you will have all the details mentioned in it.

The Car loan interest rates and charges in Auckland may vary  from Christchurch and according to every lender. They may advise you to pay a loan establishment fee or take out optional warranties or insurance fees.

1. Make sure to ask your lender to tell you all the car loan rates and fee you have to pay and the term of repayment. You will be given one dollar figure of all the charges you are required to pay.
2. It is wise to compare the car loan interest rates and fees you are paying to what you are buying. In some cases these charges may exceed the amount of interest you are paying on a different loan.

Car Loan Repayment Insurance

Some lenders also offer car loan repayment insurance. This means that if you die the lender will be given the amount due to him. Also if by any accident or illness you lose your income your repayments will be covered by the insurance for the time specified in the policy.

Repayment Insurance on Car Loan in New Zealand can be expensive and you have to pay the premium along with the interest and other charges and fee. It may also be unnecessary to include in this cost if it is absolutely not required.

Disclosure Statements

According to law the following information must be provided with the ‘disclosure statement’:

1. All the charges and fees to be paid.
2. What will happen if you are unable to make payments.
3. The interest rate that will be charged.
4. How is the car loan interest rate is calculated?

It is always wise to ask for the disclosure statement from the lender. Read it carefully and make sure you understand it before you agree to all terms and conditions. Get a friend or family member to go through the car loan agreement before you sign on the dotted line. Make sure to understand what the car loan interest rates going to be and any fees for loan agreement. Don’t get caught out read the small prints

• Car Loan interest Rates and Fees

July 22, 2014