From the team here at Kiwi Car Loans, welcome to 2016!
2016 is shaping up to be a record year for our team with the recent opening of our three new Kiwi Car Loan’s branches in Christchurch, Hamilton and Napier. If you’re looking to purchase a new vehicle this year, our team is here to help and now available in more locations throughout New Zealand for your convenience.
We’ve put a lot of time and effort into being the best at what we do and providing our clients with industry-leading vehicle finance with access to some of the lowest finance rates available on the market. But we thought rather than telling you how good we are at what we do, we thought it best to arm you with the finance knowledge you need to make that informed decision for yourself.
How can you tell if your finance consultant is good at what they do?
The answer is simple – you need to ask A LOT of questions! There is no such thing as a stupid question in finance, because it is such a specialised field, you need to ask questions to make sure you are getting the best finance solution for your needs.
We have compiled a list of the most common finance questions and answers we receive on a daily basis below so you have a better understanding of the finance process and know exactly what to ask if you’re looking at financing a vehicle.
What are the steps to obtaining finance?
- Application – Your finance consultant will discuss your current circumstances with you, including your assets, liabilities, income and expenses.
- Supporting Documents – You will need to provide your finance consultant with various documents to support your application such as identification and depending on the type of application proof of income and residence
- Approval – Your finance consultant will obtain a finance approval based on your application and vehicle particulars. If you haven’t decided on the vehicle, that’s ok, you can still receive a pre-approval pending specific vehicle details.
- Sign up – Your finance consultant will meet with you to run through the finance contract documents, which you will need to read and sign, you will receive a full copy of these documents for your reference
- Settlement – Once you have signed the finance contracts, the contract documents will be returned to the finance company for final checking at which time the finance company will arrange for the funds to be transferred to the vehicle seller.
- Drive away happy!
Can I change the car I want after I’ve been approved for finance?
Yes! You are able to change your mind on the vehicle you want to purchase right up until you sign the finance contract, as the contract will have to list the specific car details.
Can I change the total amount of my finance after I’ve been approved?
Yes! Once you have an approval in place, if you decide to change the vehicle and it is a different price, your Finance Consultant will be able to resubmit your application to the finance company for the adjusted finance amount. Please keep in mind however, this may require an additional credit enquiry on your file depending on which finance company your loan is with.
Is there a minimum age for applying for finance?
The minimum age required to apply for credit is 18 years old.
What if I haven’t had a loan before?
You don’t necessarily need to have had previous finance for our Consultants to be able to obtain you a finance approval. Plus, you may have already established a Credit Rating if you’ve previously had utilities in your name or a phone plan. Your current circumstances such as stable residence and job history may also help. Finally, a co-borrower or guarantor may also assist in these circumstances.
Can I pay my loan off early?
Yes, you definitely can! However, depending on which finance company your approval is through, they may charge early payout fees. This is something you should discuss directly with your Finance Consultant so they can take it into account when establishing which financier best suits your needs.
How is my minimum monthly repayment calculated?
The minimum monthly repayment takes into account the loan term chosen, the total amount of finance, interest charged and any applicable monthly account fees. This is the minimum amount you will need to repay each month towards your loan. However, as previous stated, you are most welcome to pay more than the minimum repayment amount. Not only will this help you pay of your loan in a shorter time frame, it may also save you a considerable amount of money on interest.
What is a balloon or residue value?
A balloon or residue value is a lump sum payment outstanding at the end of a loan term. For example, a $50,000 loan with a 20% balloon means that the loan repayments will payout $40,000 during the term of the loan and the 20% balloon, which equates to $10,000 will be payable as a lump sum at the end of the loan term. So under what circumstances could a balloon or residue value be a viable option? The main benefit of having a Balloon or Reside Value is that it reduces the minimum monthly repayments on a loan. In the case above, because you are only paying $40,000 over the term of the loan with a $10,000 balloon, the monthly repayments on $40,000 will be significantly less than the minimum repayments due on a $50,000 loan. However, keep in mind that the remaining $10,000 balloon value will still be payable as a lump sum at the end of the term. A balloon or residue value may be worth considering to increase loan affordability, increasing the maximum loan size available, assisting you to maintain cash flow or if you intend to trade in or upgrade your vehicle at the end of the loan term.
For our full list of common questions and answers, please visit our Frequently Asked Questions section on our website.
Get Your Finance Quote in Just 60 Seconds
For more information on our finance products or to discuss your finance requirements, please contact our friendly Finance Consultants on 0800 008 888. Or get an Online Finance Quote in Just 60 Seconds.
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