When you’ve saved up a chunk of money, it’s tempting to hand it all over for your next car. No debt means no interest, right? Not always. In fact, in many cases, using a car loan in NZ can be a smarter move than draining your savings.
At Loansmart, we help Kiwis make borrowing decisions that are fast, fair, and financially smart. Here’s why keeping your cash and using a Loansmart car loan might be the better option.
1. Keep Your Savings Safe
Paying cash can wipe out your savings in one go. That’s risky if life throws you a curveball — like urgent home repairs or a sudden change in income.
With a car loan, you keep your emergency fund intact and spread the cost of your car over manageable repayments. Loansmart offers flexible terms from 6–84 months, so you can choose repayments that fit your budget.
2. Drive a Better Car, Sooner
If you’ve saved $8,000, you might have to settle for an older used car. But with a competitive-rate car loan, you could afford something newer, safer, and more fuel-efficient now — without waiting another year to save up.
Newer cars can mean fewer repairs, lower running costs, and added safety features. With rates starting from 9.95%*, Loansmart helps you get the car you actually want.
3. Save Money in the Long Run
A reliable car with a warranty and better fuel efficiency can save you hundreds (or even thousands) over the years. Those savings can offset the interest you pay on your loan.
Because Loansmart compares offers from multiple lenders, we help you find the best deal — so you’re not overpaying for your finance.
4. Build Your Credit Score
Making regular, on-time loan repayments builds a positive credit history. That can help you get better rates for future borrowing, whether it’s for a home loan, renovations, or travel.
Paying cash for a car doesn’t boost your credit score — but a well-managed car loan can.
5. Flexible Repayment Options
With a car loan, you can spread the cost over months or years, making smaller repayments that work for you. With Loansmart, a $10,000 loan could cost you as little as $68 per week!
We offer repayment terms of up to 84 months and a quick, 100% online application process.
Many of our loans are approved in 1–2 hours* and can be paid out the same day*, so you can hit the road faster.
6. Interest Rates Can Be Low
Some people avoid loans because they assume the interest will be too high — but that’s not the case with Loansmart. We get your application in front of multiple low-cost lenders so you can compare offers and pick the best one.
If you have a good credit score, you could get an unsecured car loan from just 11.95%* interest, or a secured car loan from 9.95%*.
Credit score not so flash? That’s ok! Poor credit history isn’t a deal breaker for us. We can arrange bad credit car loans for people whose credit scores have taken a hit. You may pay a higher interest rate, but it can be a great opportunity to rebuild your credit profile.
7. Pay Off Early if You Want
Many of our loan options allow early repayment without heavy penalties. If you get a bonus or extra cash, you can clear your debt faster and save on interest.
Why Choose Loansmart for Your Car Loan in NZ?
- Quick applications — Apply online in 2 minutes.
- Fast approvals — 1–2 hour approvals* for many loans.
- Same-day payouts — Get your funds and your car faster*.
- More options — Compare multiple lenders for the best deal.
- Fair and caring — We focus on what works for you.
At Loansmart, we make getting a car loan in NZ quick, easy, and fair. We’re all about taking the hassle out of applying for loans. Our 100% online process is straightforward and easy to understand. We jump through hoops so you don’t have to! Get in touch today to find out why so many of our customers just love the outstanding service they get from Loansmart.
*Standard lending criteria apply. Approval times and payment speeds may vary.
