There are many lenders who offer financing to all types of clients, including those with low credit scores. It does not matter whether you have a tainted credit history or not; what matters is that you have an income that can service the car loan. Since almost every car financier may be willing to finance your car purchase, you have to shop around to ensure you find the best car financing possible. During your research, you should not be in any hurry.
It is imperative you spend some time comparing the top-rated car loan lenders as this will help you make a decision that is informed. This will allow you to consider all the necessary factors that might influence your decision. Below are some of the things to look at:
i) Down Payment Required
When it comes to bad credit car loans NZ lenders usually demand huge down payments. You may be asked to pay as much as 50% deposit to secure car financing. Some lenders may be more lenient and ask for 20-40% deposit before approving the loan. By comparing the down payment requirements of the shortlisted lenders, it will be possible for you to identify the best loan for your needs.
ii) Interest Rate
Most lenders will hike the interest rate on their loans when they receive applications from people with bad credit car loans NZ. This is because people with tainted credit histories are more risky and pose a challenge. To address this increased risk exposure, lenders usually charge higher rates of interest. Please note that interest rates differ from lender to lender, so it is good you shop around before deciding to make a commitment.
iii) Terms and Conditions
The T&Cs offered by the lenders on your list must be read and understood. You do not want a car loan that you will be forced to pay fully within 12 months or 24 months on your current salary. Therefore, you must check the loan term and other conditions before deciding to make a commitment. Reading the T&Cs will enable you to make decisions that are informed.
Ideally, you should take as much time as you can spare to conduct the necessary background research as this will help to ensure you find the best car loan for your needs. Do not choose the first lender with a great car financing product because they may not necessarily be the best in the industry.