Car finance for disabled people and carers in New Zealand

The short answer

You can apply for car finance in New Zealand if you have a disability, and a lender will assess you the way it assesses anyone: can you afford the repayments, and what does your credit history show? The Human Rights Commission explains that the Human Rights Act protects people from discrimination on grounds that include disability when they are getting goods and services. If you think you were treated unfairly, you can contact them.

There are two things that are specific to disability and worth knowing before you borrow:

1. Funding may exist for your vehicle modifications. It is run through an assessment process, and it works best when you start it before you buy.
2. A mobility vehicle can cost more than an ordinary car, so the loan, the term and the deposit need more careful planning.

This page is general information. It does not replace advice from an occupational therapist, a financial mentor or the agencies named below.

Start with funding, before the loan

Disability Support Services, part of the Ministry of Social Development, funds vehicle modifications for some disabled people. Accessable delivers it in Auckland and Northland and Enable New Zealand delivers it everywhere else, so the occupational therapist will send your application to the right one.

According to the Disability Support Services page on vehicle modifications:

• You must be a New Zealand resident living in New Zealand, with a long-term disability that is not covered by ACC.
• An occupational therapist assesses your needs and checks whether you are eligible. The therapist then submits the application.
• The assessment looks at your disability needs and your ability to drive, or to learn to drive. Recommendations can include hand controls, seating, ramps or hoists, and safe wheelchair transport.
• The purpose needs to be to help you work or study, or to care for someone who depends on you.
• Funding to buy a vehicle that will then be modified is possible in a small number of cases. It depends on your financial situation and why you need the vehicle.
• Once approved, work starts when funding is available, which may be sooner or later depending on how urgent your need is.

Work and Income says the same support can help with buying or modifying a vehicle, and that the amount depends on the cost of the vehicle or modifications, your and your partner’s earnings, and any money or assets you and your partner have. Check the current rules with Work and Income or Disability Support Services, because details change.

Why the order matters

If you are going to borrow to buy a vehicle and have it modified, talk to the occupational therapist before you sign a purchase agreement. They can tell you what suits your needs, which can save you buying a vehicle that cannot be modified the way you need. The service also checks whether public transport, mobility taxis or grants have been considered, so be ready to talk through the options.

A low-interest loan option for physical disability

Paraloan, the trading name of the Paraplegic and Physically Disabled Foundation, says it may offer a low interest loan for a vehicle, housing, self-employment or another purpose to people with a physical disability who meet its eligibility criteria. Its site does not list rates or amounts on the pages we could read, and eligibility sits on a separate criteria page, so check with Paraloan directly. It can be worth comparing against a lender quote, whichever way it goes.

Other support that can reduce what you need to borrow

None of these buy a car, but some reduce running costs or help with transport.

• Total Mobility scheme. A subsidy on some taxi and transport trips for people who have a disability that stops them using public transport safely. It is run by regional councils and Auckland Transport, and rates change, so check govt.nz or your council.
• Disability Allowance. A weekly payment from Work and Income for ongoing disability-related costs, such as medical visits, medicines and travel. It is not taxed and does not need to be repaid. You do not have to be on a benefit to qualify, but income limits apply if you get NZ Superannuation or no main benefit, and a health practitioner has to confirm the costs. Check the current rules.
• Carer Support. Funding for relief for full-time carers. It does not pay for a car or other purchases.
• Community grants. The Disability Support Services pages mention grants from organisations such as the NZ Lottery Grants Board as other options an assessor may raise.

If you are on a benefit, our page on car finance on Supported Living Payment and the guide to lenders that accept benefit income cover how that income is treated. Work and Income helps with some car repairs, not buying a car. See will WINZ help me buy a car.

What lenders look at

Under the Credit Contracts and Consumer Finance Act, a lender has to make reasonable inquiries to check the loan is suitable and affordable for you. That is true whoever you are. In practice:

• Income. Wages, a benefit, superannuation, ACC payments or a mix. Lenders want to see that it is regular and that it covers the repayments after your living costs. See does a benefit count as income.
• Spending. Rent, bills, disability-related costs, childcare and other debts.
• Credit file. Missed payments, defaults and judgments. See low credit score car finance.
• The vehicle. Age, value, condition and whether it has any money owing on it.

If your income is lower, a lender may offer a smaller loan, a bigger deposit or a longer term. Our page on low-income car finance goes through that.

Financing a mobility or wheelchair accessible vehicle

An accessible vehicle can be a van converted for ramp or lift access, a car with hand controls, or a vehicle with a wheelchair hoist. A few points that apply to the finance side:

• The cost can be higher. Modification work and conversions add to the price. Our van finance page covers how van loans are assessed.
• Ask whether modifications can be included. Lenders may treat modifications differently when they value the vehicle as security. Ask the lender, and do not assume.
• Get itemised quotes. If part of the work is funded and part is not, you need to know exactly what you are paying for.
• Check the vehicle. Do a PPSR check and get an independent inspection, especially if you are buying a used converted vehicle. Dealers must provide a Consumer Information Notice with the history, odometer reading and any money owing. A private sale gives you fewer protections.
• Think about insurance. Many lenders ask for comprehensive cover while the loan is open. Get a quote for the exact vehicle, including the modifications, before you commit.

Worked example

These numbers are made up to show the maths and are not a quote. Say you buy a used accessible van for $28,000, put $4,000 down and borrow $24,000 at an illustrative 15% over five years.

Loan	$24,000
Rate (illustrative)	15%
Term	5 years
Monthly repayment (approx.)	$571
Total repaid (approx.)	$34,300
Interest (approx.)	$10,300

If funding paid for part of the modifications, the loan could be smaller, and the repayments would fall with it. If it did not, a larger deposit or a lower-priced vehicle would be the levers. The repayment calculator will let you test your own numbers.

For carers

Many carers ask about car finance because the car is how the person they support gets to appointments and the community. The same lending rules apply. A lender looks at your income and spending, not at your caring role.

• If you work, your wages count in the usual way. If you get a benefit, see the pages linked above.
• Carer Support is for relief care and does not fund a car.
• Our page on Working for Families and car finance explains how that income is treated.
• If you are a sole parent, see car finance on Sole Parent Support.

If you are caring for a disabled child who lives with you, the occupational therapist assessment also covers passenger safety needs, such as seating, restraints, ramps or hoists.

Red flags

• Pressure to buy a vehicle before you have had it assessed.
• A lender or dealer who will not give you the rate, fees and total repayment in writing.
• Add-ons bundled into the loan that you did not ask for. Ask for each price separately.
• A mobility vehicle sold with no history or inspection.
• Anyone promising approval before they have seen your income and credit file.

If you have been treated unfairly because of your disability, you can contact the Human Rights Commission. If a lender has not followed the rules, complain to the lender and then to its financial dispute resolution scheme. See making a car finance complaint.

How Fair Finance helps

Fair Finance is a referral service. It is not a lender, a broker or a financial adviser, and it does not give personalised advice. One application and one soft credit check go to a panel of approved New Zealand lenders, so you can see options without a hard check at each one. Each lender decides case by case. Fair Finance is paid by the lender only when a loan settles, and that never changes your rate. The quick check is where to start.

Checklist

• Talked to an occupational therapist before choosing a vehicle
• Checked eligibility for vehicle modification funding
• Looked at Total Mobility, Disability Allowance and other support
• Worked out a full monthly budget, including insurance and running costs
• Asked the lender whether modifications can be financed
• Itemised quotes for the vehicle and the modifications
• PPSR check and independent inspection
• Rate, fees and total repayment in writing

General information only, not financial advice. Funding rules and amounts change, so check the official pages below.

Sources

• Disability Support Services: Vehicle modifications
• Paraloan: Paraplegic and Physically Disabled Foundation
• Enable New Zealand: DSS funding for vehicles
• Work and Income: Vehicle modification funding
• Work and Income: Disability Allowance
• Disability Support Services: What people can buy with disability funding
• govt.nz: Total Mobility scheme
• Human Rights Commission