In today’s busy world, having a car isn’t just nice to have—it’s pretty much a must if you want to get around easily.
But let’s be real, picking the best car finance can feel pretty overwhelming with all the choices out there.
Whether you’re buying your first car or thinking about upgrading your wheels, getting a good grip on vehicle finance is super important to help you make the best choice.
Keep reading to learn more about how to find the best car loan, including the difference between secured and unsecured car loans, getting the lowest rate, and car loans for bad credit.
Car Loan Types
When it comes to vehicle loans, there are two main loan types: unsecured and secured loans.
Unsecured car loans
An unsecured loan is a type of personal loan where you are simply given cash to spend how you like.
The benefit of this is when it comes to car shopping is that there are no restrictions on what type of vehicle you buy.
You can buy from whoever and wherever you want: TradeMe, a car dealer, privately, or at auction, it’s up to you.
You also have the benefit of being a cash buyer, which can give you more negotiation power to get a better deal.
Loansmart’s unsecured car loans offer limits of up to $75,000, with competitive rates from 11.95%.
Secured car loans
A secured car loan means the vehicle itself is used as security against the loan.
This offsets some of the risk to the lender, which means you can potentially get a better interest rate.
On the other hand, your choice of vehicle may need to be approved by the lender before you can buy it. This slows the process down, but also removes your ability to negotiate as a cash buyer.
Still, this loan type is still attractive for people who want the lowest interest rate possible. With Loansmart, you can borrow up to $150,000 with a secured loan, with interest rates starting from 9.95%.
Finding the Best Car Finance
Navigating the world of car loans can be a bit confusing, but there are a few things you can look out for to make sure you’re working with a good lender.
5-star reviews
Online reviews are a great way to make sure the company you’re dealing with is a good one.
Loansmart has more than 500 5-star reviews on Google, which is how you know we provide smart solutions that keep our customers happy.
Just check out a few recent examples:
“Great service, I dealt with Andrea, she was super efficient and made things super easy for me. Great communication. Thanks heaps, Andrea!” – Crystal
“The online application was very easy and Kelly was very helpful in her communication with me. My loan was in my bank account within 24 hours.” – Eddy
“Kalia was amazing. Such a smooth and stress free process.” – Rebecca.
Read all of our reviews for yourself and see why so many Kiwis love Loansmart’s easy and fun loan process.
Choose a responsible lender
Going with a provider who is part of the Financial Services Federation (FSF) is one way of knowing you’re dealing with a reputable company.
Loansmart is an associate member of the FSF, which means you can trust that we’ve got your back when it comes to looking out for your best interests.
Being with the FSF means we’re required to stick to responsible lending practices that ensure we do what’s right for you and your personal finances.
At Loansmart, we take the time to really get to know your situation and no matter what your financial circumstances are, we figure out how to help you out.
We’re here for you, especially during tough times, and we treat you with the care you deserve to help you take charge of your money again.
Plus, by following the FSF Code of Conduct, you know we treat everyone fairly and with total honesty.
Use a loan broker
Many traditional lenders, like banks, offer a one-size-fits-all approach that may mean you don’t get the best possible deal.
Loansmart is different: we’re a loan broker, which means we put your application in front of multiple lenders to get you the best offer.
That’s great because more lenders means more chances of approval!
It’s also good for your credit score – making multiple loan applications in a short period of time can harm your credit report, but with us you only have to make one application to get access to multiple lenders.
We only work with low-cost lenders, so you can be sure that with Loansmart, you’re getting extremely competitive interest rates.
On top of that, we’re 100% online, which means we’re super fast and efficient so you can get your loan sorted even faster.
After you complete our super quick 2-minute application form, we can get loan approval within just 1-2 hours* and have the money in your account the same day*.
Our loan advisors are on it, racing to match you with the best personal loan lenders to score you an awesome deal!
*Subject to responsible lending criteria
Best car loans for bad credit history
Need a new car but your credit history isn’t so good?
It can be tricky to get a loan with certain lenders if you have poor credit history.
The good news is, some lenders understand that sometimes people need second chances.
At Loansmart, we work with people with poor credit scores to get affordable loans that help them get back on track financially.
Our team takes the time to listen to you and your story to find out why your credit history may be patchy, and how we can help you improve it.
In most cases, if our customers have enough regular income to cover the loan repayments, there’s a good chance we can get them loan approval.
Sometimes we arrange secured car loans to help people with bad credit. Because a secured loan has collateral against the loan, the risk to the lender is reduced, so they’re more likely to say yes.
So if you have bad credit, don’t worry, just give our friendly team a call and they’ll talk through your situation with you.
