Finance for a used Japanese import
You can finance a used Japanese import in New Zealand, and many are bought on a normal secured car loan. A lender cares about the car's age, value and history as well as your income, and imports can have thinner records than a car that has lived here for years. Nobody can promise approval, so check the car properly and know what a lender will ask before you sign.
The short answer
A used Japanese import is a used car as far as a lender is concerned. The loan is a normal secured car loan, and the car is the security. What changes is how much a lender knows about the car.
A car that has lived in New Zealand for ten years has ten years of warrant of fitness readings, owners and records. A car that landed last month has very little of that. That is why imports sometimes get more questions, and why the checks in this page matter for your wallet as well as for safety.
If your credit file has marks on it, the same rule applies as for any car: lenders look at you first and the car second. Our page on used car loans covers how that works, and this page covers what is specific to imports.
Who sold it to you matters
The words “Japanese import” cover very different transactions.
- A New Zealand dealer who has already imported the car. The car is in the country and complied, you can see it, and the dealer has legal duties. Consumer Protection says a dealer must show a Consumer Information Notice on a used vehicle, and that notice states the odometer reading and whether the vehicle was imported. It also shows any money owing.
- A private seller. There is no notice, and the consumer-rights law that covers dealers does not apply to private sales.
- An agent or importer who sources the car for you. You may be the person bringing the car in. Ask who the seller is in law, what you are agreeing to, and what happens if the car arrives in a different state from the photos.
Consumer Protection says that buying a car sight unseen and having it delivered is risky and that you should make an informed decision. If a lender is funding the car, you owe the money whatever the state of the car on arrival.
If you are buying through a dealer, our page on car yard finance explains how dealer finance works and where the dealer’s role ends.
What lenders look at on an import
A lender wants a loan it can secure against a car it can value. For an import, expect questions about these points.
Age at the end of the loan
Lenders set their own limits on the age of a car when the loan starts and when it ends. A car that is already ten years old on a five-year loan will be fifteen at payoff. Our page on the oldest car you can finance explains how this works. Because many used imports are older cars, this is often the first hurdle, and a shorter term can help.
Value
Lenders want to lend against what the car is worth, not what you paid. If the price is high against similar cars on the market, the lender may lend less than the price, and you cover the difference. Check what comparable cars sell for before you agree a price.
Condition and compliance
A lender’s guide on SUV finance says some lenders or dealers ask about a vehicle’s age, warrant of fitness status and compliance with NZTA rules, and advises checking eligibility for used or imported cars. Ask the lender, not only the seller.
History
For a recent import, history is thin. An AA guide says that recently arrived cars often have little available history, and that an independent expert should assess whether the car’s condition fits the kilometres shown. It recommends a pre-purchase inspection.
Insurance
Most lenders will want the car insured while the loan is open. Consumer Protection says the disclosure statement should cover what insurance is required. Get a quote on the exact car before you commit, because insurers can price imports differently from locally sold models.
Odometer and history checks
A lender is lending against a car’s value, and the odometer reading is a big part of value. On Japanese imports, AA advises:
- Look for an odometer verified sticker, plus the matching authorisation certificate that shows the car was inspected before it left Japan.
- Do not treat the sticker as proof forever. A sticker on a car that has been here a while does not show that the reading has not been changed since. A history report that compares readings at each warrant of fitness checks that.
- Get an AA vehicle history report or similar. AA says its report flags discrepancies between readings, shows security interests and says whether the car was imported as damaged.
- Pay for a pre-purchase inspection. An inspector can tell if the condition fits the claimed mileage.
- Compare against service records. Any records from Japan should match the stated reading.
Consumer Protection also lists inconsistent odometer readings among hidden problems to check for, along with money owing, theft and water damage. Our guide to the PPSR check covers the money owing check. If the car has a security interest registered against it and you buy and finance it, you could lose the car.
Reading an advertised weekly price
Importers and dealers often show a weekly repayment next to the car. This can be useful, but the figure hides assumptions.
One importer’s site states that its estimates are based on a 5-year term, 13.95% interest, no deposit and a $490 documentation fee. Those inputs matter. A longer term lowers the weekly figure but raises the total cost. A documentation fee adds to what you owe. A different deposit or credit history will give a different rate.
Before you compare two cars, ask for these:
- The total amount you will repay
- The interest rate and whether it is fixed
- All fees, including establishment, documentation and early repayment
- What insurance is required
Our page on dealer commission on finance explains how a dealer may be paid when you take finance through them. A second quote is a good check on any weekly figure.
Hybrids, diesels and electric imports
Many Japanese imports are hybrids, diesels or electric cars, and these have extra costs that affect the loan you can afford.
- Diesels pay road user charges. Government guidance says light vehicles that run on diesel pay RUC. A reported rate for a light diesel vehicle is $76 per 1,000 km. Confirm the current rate on the NZTA site.
- Plug-in hybrids and electric vehicles pay RUC too. NZTA says they needed a RUC licence from 1 April 2024. See our page on electric car loans.
- A petrol hybrid pays through fuel tax, like a petrol car. Our page on hybrid car loans covers hybrids.
- An import electric car has a battery question. The battery is the most expensive part. Our page on used electric car finance covers battery reports and warranty.
At 12,000 km a year, a $76 per 1,000 km charge works out to about $912. Add RUC to your running costs before you decide what repayment you can carry.
A worked example (illustrative numbers only)
Say you are buying a $9,000 imported hatchback and borrowing the full price. The rate and terms are made up to show the method. Use the calculator for yours.
| 3-year loan | 5-year loan | |
|---|---|---|
| Loan (illustrative) | $9,000 | $9,000 |
| Rate (illustrative) | 15% a year | 15% a year |
| Repayment per month (approx.) | $312 | $214 |
| Total repaid (approx.) | $11,230 | $12,850 |
| Extra cost of the longer term | about $1,600 |
The five-year loan is easier on the monthly budget, but costs about $1,600 more and leaves the car older when the loan ends. If the car is already old, a lender may only offer the shorter term anyway. Ask which term the lender would accept for this specific car.
Add a documentation fee, registration, insurance and a reserve for repairs, and compare the real monthly cost with your income.
Red flags
- A seller who cannot show the odometer certificate for a recent import.
- An odometer reading that does not match the service records or history report.
- A dealer who will not show you the Consumer Information Notice.
- A weekly price with no stated term, rate or fees.
- Money owing on the car that is not disclosed.
- A car priced well above similar cars.
- Pressure to pay a deposit for a car you have not seen. See our page on car finance scams.
- Anyone promising approval before they see your income and credit file.
Cheaper ways in
If the import you want does not fit your budget, consider a newer, locally sold model of a similar size, or a smaller import with fewer kilometres. A larger deposit reduces the loan, and our page on how much deposit you need explains how that changes a lender’s view. If you are new to credit, see first car loans with no credit history.
How Fair Finance helps
Fair Finance is a referral service, not a lender. 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. The lender decides case by case, including whether it will lend on a particular imported car. We are paid by the lender only if a loan settles, and that never changes your rate. Use the quick check to start.
Checklist
- Seller type confirmed: dealer, private or importer
- Consumer Information Notice seen, including the imported and money owing details
- Odometer sticker and certificate checked for a recent import
- History report run to compare readings
- Pre-purchase inspection done
- PPSR searched for money owing
- Car age at payoff checked against the lender’s limit
- RUC, insurance and repairs added to the monthly budget
- Term, rate, fees and total repayment in writing
General information only, not financial advice. Rules and products change, so check the official pages below.
Sources
- Consumer Protection: Buying a car from a dealer
- Consumer Protection: Before buying a used car
- Consumer Protection: Getting a loan for your car
- Consumer Protection: What lenders must do
- NZTA: Electric vehicles and plug-in hybrids to start paying road user charges from 1 April 2024
- NZTA: Road user charges
- AA Driven: Don’t buy a clocked car
Common questions
Can I get finance for a Japanese import in NZ?
Yes, used imports are financed through the same kinds of secured car loans as other used cars. Each lender sets its own rules on the car's age, value and condition, and decides case by case on your income and credit file. Nobody can promise approval.
Is it harder to get a loan for an imported car?
It can be, because a lender needs to be confident about the car's value, age and history, and a recent arrival has little local history. One lender's guide says some lenders ask about vehicle age, warrant of fitness and compliance, and advises checking eligibility for imported cars. Ask the lender before you commit to a car.
How do I check the odometer on a Japanese import?
AA advises looking for an odometer verified sticker plus the matching certificate showing the car was inspected before it left Japan. For a car already registered here, an AA vehicle history report compares readings recorded at each warrant of fitness and flags discrepancies. A pre-purchase inspection is a further check.
Can I finance a car that has not arrived in New Zealand yet?
Ask the lender before you commit. A secured loan is registered against a specific car, so lenders may not fund a car that is still on a ship or that you are importing yourself. Buying from a New Zealand dealer who has already imported and complied the car is a different transaction.
Do imported hybrids and diesels cost more to run?
Diesel vehicles pay road user charges, and plug-in hybrids and electric vehicles have paid them since 1 April 2024. A petrol hybrid does not. Confirm the current rates and rules on the NZTA site before you add running costs to your budget.
What should I look for in a weekly repayment figure on an import?
Look for the assumptions behind it: the term, interest rate, deposit and any documentation fee. One importer's site states a 5-year term, 13.95% interest, no deposit and a $490 documentation fee, so the weekly figure only makes sense once you know those. Ask for the total repayment in writing.
See your repayments, then get a fair rate.
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