Family car finance in NZ: 7 seaters, people movers and the real cost of a big car

The short answer

The right vehicle for a bigger family is rarely the cheapest one. It is the one that fits everyone safely, can be paid for every week and does not leave you short when something breaks. A seven seater or people mover usually costs more at every step: the purchase price, fuel, tyres, insurance and servicing. So the first job is to work out the full weekly cost, then see what a lender will consider.

Fair Finance is a referral service, not a lender, a dealer or a financial adviser. One application and one soft credit check go to a panel of approved New Zealand lenders. We are paid by the lender only when a loan settles, and that never changes your rate. Lenders decide case by case, and nobody can promise approval.

Do you need seven seats or just more room?

Seven seats are useful if you regularly carry five kids and two adults. If you only need them a few times a year, a large wagon or SUV with a roomy boot might do, and you may find hiring or borrowing a van for the occasional trip is cheaper than running one every day.

Questions to ask:

• How often do all seats get used, in a normal month?
• Are the third-row seats usable for older kids and adults, or only for small children?
• Is there boot space when all seven seats are up?
• Will you need to fit two or three child seats across one row?
• Do you want sliding doors for tight car parks?

Write the answers down before you start looking. It keeps a dealer from steering you to the biggest vehicle in the yard.

Safety ratings and car seats

Safety deserves as much attention as price. The Rightcar website shows safety ratings for many vehicles sold in New Zealand, and it also lets you compare energy economy. Check the ratings for the specific make, model and year, because standards and features differ between model years. Many popular imports are older, and an older people mover can have fewer safety features than a newer one.

For car seats, NZTA’s rules say children must use an approved child restraint until their seventh birthday. If a restraint is available in the vehicle, they must keep using it until they turn eight, and NZTA recommends a booster until a child is 148 cm tall. Before you buy:

• Take your actual seats to the car and fit them.
• Check how many top tether and anchor points there are, and where.
• Look at whether the third row has proper belts, not only lap belts.
• Think about whether kids can climb in and out safely.

A child restraint technician can check the fit if you are unsure. Our guide on what a car really costs to own covers the rest of the running costs.

What a bigger vehicle costs to run

Here is an illustration with round numbers. Compare a five-seat hatch at $15,000 with a seven seater at $22,000. Both are borrowed over four years at an illustrative 14 percent a year.

	Five-seat hatch	Seven seater
Weekly repayment	about $95	about $139
Total interest	about $4,700	about $6,850
Fuel per week	about $50	about $80
Insurance, rego, WoF, servicing per week	about $40	about $55
Total per week	about $185	about $274

The seven seater costs about $89 more every week, around $4,600 a year. Whether that is worth it depends on how much you need the seats. These are made-up figures, so use the repayment calculator and get real insurance and fuel economy numbers for the models you are considering. Hybrids can lower the fuel line, and our hybrid car loan page explains how they are financed.

Working for Families and household income

If you receive Working for Families tax credits, you may wonder whether a lender will count them. Practices vary, and lenders still need to see that the payments are regular. Our page on Working for Families car finance explains what to prepare. Other child-related payments follow the same idea: lenders look at what comes in steadily and what goes out.

Household costs matter just as much. Lenders must make reasonable inquiries and be satisfied you can afford repayments without substantial hardship. Childcare, school costs, after-school activities, food and rent all count. A budget that works for two people may not work for six.

If one partner earns and one is caring for children, a joint application can show both incomes and both credit files. Both people would then be fully responsible for the loan. Our page on whānau car finance explains co-borrowers and guarantors, which apply to any family.

Choosing the vehicle: what to check

• Age and kilometres. Lenders may be more cautious about older, high-kilometre vehicles because the car is the security for the loan.
• Service history. A thick service book is worth more than a low price.
• Money owing. Do a PPSR check so you do not buy a car that still has a loan against it.
• Imports. Check the odometer history and what a model costs for parts in New Zealand.
• Sliding doors and seat belts. Make sure every seat that carries a child has a proper belt.
• Running costs of tyres. Larger vehicles often use larger and more expensive tyres.

If your credit file has marks on it

Defaults or missed payments can make finance harder, but lenders look at how recent they are and what has changed. Our pages on car finance with defaults and low credit score car finance explain what to expect. Check your own report with Centrix, Equifax or Experian (formerly illion) before you apply. If you are a current bankrupt, Fair Finance cannot help until after discharge or after a No Asset Procedure has ended.

Free help if the numbers are tight

• MoneyTalks is a free helpline run by FinCap. A mentor can look at your budget with you.
• Work and Income may help families on low incomes. It does not help buy a car, but it may help with repairs. Read whether Work and Income will help you buy a car.
• Sorted has free car loan guidance and budget tools.

How Fair Finance helps

Complete one online application and we run one soft credit check, which does not affect your score. We pass your details to our panel of approved lenders and show you those that could fit. You can shop at any yard or buy privately. Lenders decide case by case, and nobody can promise approval. Try the quick check for a first look.

Checklist

• Decide how often you really need seven seats
• Look up the model’s safety rating on Rightcar
• Try your car seats in the vehicle
• Get an insurance quote for the exact vehicle
• Work out the weekly total: loan, fuel, insurance, rego, servicing
• Gather three months of bank statements and proof of any tax credits
• Run a PPSR check on the vehicle

General information only, not financial advice. Rules, rates and local services change, so check the official pages below.

Sources

• Rightcar: vehicle safety and energy economy ratings
• NZTA: Child restraints
• Consumer Protection: What lenders must do
• Sorted: Car loans