Loan term
How long you have to pay the loan back, usually one to seven years. A longer term means lower payments but more interest overall.
The loan term is the length of time you take to repay the loan. Car loans in New Zealand usually run from one to seven years.
The term changes your payments in a simple way. A longer term spreads the cost over more payments, so each one is smaller. A shorter term means bigger payments but you clear the debt faster and pay less interest in total.
- Short term: higher payments, lower total interest, own the car sooner
- Long term: lower payments, higher total interest, longer to fully own it
A very long term on an older car can also leave you in negative equity, where you owe more than the car is worth. Pick a term that keeps payments affordable without dragging on too long.
Play with different terms in the repayment calculator, then get your fair rate.
See your repayments, then get a fair rate.
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