Car finance hub

Car finance in New Zealand, whatever your situation

Most car finance pages are written for people with clean credit and a steady salary. This hub is for everyone else: defaults on your file, a discharged bankruptcy, a benefit, a new visa, no deposit or no credit history at all. Pick your situation and you'll get a straight answer on what lenders look at and what to do next.

By the Fair Finance Editorial Team·Updated 9 July 2026

How car finance works in NZ, in one minute

A car loan in New Zealand comes from a bank, a finance company, a credit union or a dealer's finance partner. Every one of them is bound by the Credit Contracts and Consumer Finance Act (CCCFA), which means they must check that the repayments are affordable for you before they lend. That rule is why no honest lender can promise approval before seeing your application, and why any offer that skips the credit and affordability checks deserves suspicion.

What decides the answer is usually four things: your income and how steady it is, your regular expenses, your credit history (recent and unpaid problems matter more than old, paid ones), and the car and loan you're asking for. A deposit, a cheaper car or a shorter history of problems can each move a "no" to a "yes". Fair Finance is a referral service, not a lender: one application and one soft credit check reach our panel of approved lenders. See how it works and our disclosure.

Who lends car finance in NZ

You can borrow for a car from several types of lender, and they suit different people.

Banks. Often the lowest advertised rates, but usually the strictest about credit history, income and the age of the car. A good fit if your file is clean.
Finance companies. Specialist lenders such as MTF Finance and UDC Finance focus on vehicle loans and will often consider a wider range of situations. They usually take the car as security.
Credit unions and building societies. Member-based lenders that can be flexible if you already bank with them.
Dealer finance. Convenient, because it is arranged where you buy the car, but the dealer's finance partner may only offer one or two options. See dealer finance vs a broker vs a bank.
Brokers and referral services. One application is passed to several lenders. Fair Finance is a referral service, not a lender: we do not make the lending decision, and we only receive a fee from the lender if a loan settles.

Car loan interest rates in NZ

Rates vary a lot from person to person. As at 9 November 2026, UDC Finance advertises personal car loan rates from 9.05% to 11.95% p.a. on its car loans page, and Harmoney lists secured car loans from 7.89% to 21.79% p.a. on its secured loans page. These are published ranges, not offers. Your rate depends on your credit history, income, the loan amount, the term and the car. Lenders change their rates, so check the lender's own page for the current figure. For how rates are built up, read car finance interest rates explained.

New car or used car finance

New car loans often carry lower rates because the car holds more value as security. Used car finance is widely available in New Zealand, including for imports. Lenders look at the age, price and mileage of a used car, and very old or cheap cars can mean a smaller loan or shorter term. You can also finance a car from a private seller or Trade Me: read how to finance a private sale and run a PPSR check first.

Secured vs unsecured car loans

A secured loan uses the car as security, so the lender can repossess it if you stop paying. That usually means a lower rate and bigger amounts. An unsecured personal loan has no security over the car, but rates are typically higher and the amount smaller. Our secured vs unsecured guide lays out the trade-offs, and joint and guarantor loans explains the options if you need someone else on the loan.

Apply for a car loan online: what you need

Photo ID, such as your NZ driver licence or passport, and proof of your address.
Proof of income: recent payslips, or bank statements and tax records if you are self-employed. Benefit income can count too.
Recent bank statements, so the lender can check your regular spending (they must check the loan is affordable under the CCCFA).
Details of the car if you have chosen one: make, model, year and price.

The full checklist is in what you need to apply. Timing depends on the lender and how complete your documents are, so be careful of anyone quoting a fixed turnaround. Getting your paperwork ready first helps, and pre-approval lets you shop for a car knowing your budget. Worried about your credit file? Read whether applying hurts your credit. When you are ready, start your application.

Car finance near me

You do not need to find a lender down the road. Fair Finance works online across New Zealand, so someone in Gisborne or Gore applies the same way as someone in Auckland. What changes locally is the work available, the distances you drive and the dealers around you, which is why we have city pages below. Brokers and lenders with local offices can be useful if you prefer a face-to-face meeting, but a local office does not change the lending rules.

How to compare the total cost

A low weekly payment can hide an expensive loan. Compare offers on the total you will repay: the loan amount plus all interest and fees over the full term. Check the establishment fee, PPSR fee, any monthly account fee and any charge for repaying early, then ask whether the rate is fixed. Use the repayment calculator to test different terms and deposits, and read the early repayment guide if you plan to clear the loan sooner. A lender must give you the full cost of borrowing before you sign.

Find your situation

Bad credit, defaults and judgments

Defaults, missed payments, a low score or a past repossession. What lenders weigh and what you can fix first.

After bankruptcy or a No Asset Procedure

Only once you're discharged or your NAP has ended. Timelines, what shows on your file, and what lenders ask.

On a benefit or WINZ

Jobseeker, Supported Living, Sole Parent Support and more. Cheaper options first, then lenders that accept benefit income. See the full benefit and WINZ hub.

Work visa and new to NZ

No NZ credit history yet? How visa length, your job and your overseas history are read.

First car and young drivers

18, no credit file, restricted licence. How to make a thin file work for you.

No deposit or a small deposit

When 100% finance works, when it costs you, and how a trade-in can stand in for cash.

Uber, courier and casual work

Income that changes week to week. How to show lenders it is steady enough.

Buying, leasing and other vehicles

Leasing versus a loan, EVs and hybrids, utes, motorbikes, trucks and motorhomes, family cars, selling with finance owing, and how to tell a real deal from a dressed-up one.

Low income

Affordability, not a minimum salary, decides it. Budgets, realistic cars and what helps.

Car finance by city

The rules are the same nationwide, but local work, distances and dealers differ. These pages cover what changes where you live.

Before you apply anywhere

Get your free credit reports from Centrix, Equifax and Experian (formerly illion) so you know what a lender will see. Our guide to credit scores explains how.
Work out what you can afford with the repayment calculator, then add rego, WoF, insurance and fuel (the real cost of a car).
Run a PPSR check on any used car before you pay.
If money is tight right now, free help from a budgeting service through MoneyTalks (0800 345 123) comes first.

Common questions

Can I get car finance in NZ with bad credit?

Often, yes. Lenders look at how recent the problems are, whether they're paid, and whether the new repayment is affordable on your income today. Some specialist lenders work with defaults and past insolvency. Nobody can promise approval, and you should be wary of anyone who does.

Is Fair Finance a lender?

No. Fair Finance is a referral service. We pass one application to a panel of approved New Zealand lenders, and the lender makes its own decision. We're paid by the lender only if a loan settles, and that never changes your rate.

Does checking my options affect my credit score?

The first check is a soft credit check, which other lenders don't see and which doesn't change your score. A hard check only happens if you choose to go ahead with a specific lender.

Can I get car finance while I'm bankrupt?

Not while you're an undischarged bankrupt. Borrowing $1,000 or more without telling the lender you're bankrupt is an offence under the Insolvency Act, lenders very rarely say yes, and we don't refer current bankrupts. Once you're discharged, or your No Asset Procedure has ended, lenders will consider you.

See your repayments, then get a fair rate.

One application, one soft credit check, no obligation. We match you to the lender most likely to give you a fair go.

Start my application Check repayments first