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Can You Get a Car with Bad Credit?

Monday, 13 December 2021

Can You Get a Car with Bad Credit?

As a cautious car buyer, your primary concern is to make smarter car financing decisions. But imagine pulling your credit report, only to find that your credit rating has taken a hit. Does that mean you can’t get a car loan in NZ? The answer is a resounding NO! You can still finance your dream car even with bad credit.

However, most NZ car loan lenders will approve your financing quest on restrictive terms if your credit score falls below the required range. That’s why you need to go where a bad or less-than-perfect credit score will work to your advantage. Note that you’ll have to comply with the set terms.

Now, looking at your bad credit and keeping your affordability in mind, Kiwi Car Loans can help with smarter unsecured or secured car loan deal for borrowers like you. But before that, here’s what you need to do:


Know Your Credit History

Your credit score plays a significant role in determining your loan’s terms. When it comes to financing a car with bad credit in NZ, most lenders tend to flex their terms. Get a comprehensive report on your credit before you make a move. It helps you know where you stand in advance.

If you don’t urgently need a car loan, focus on improving your credit score with time. You can do this by paying any outstanding debts and keeping up with your monthly payments. While this won’t change the terms of your current loan, you’ll repair your credit and enjoy better rates in the future.

Some NZ companies where you can check your credit file:



Find out more information on credit score, credit history and checks from the official government website here.

Determine Your Budget 

It’s advisable to walk into a dealership when you’ve determined how much you can afford to spend on your car purchase. You ought to make your monthly payments without fail. Otherwise, you’ll ruin your credit further.

Start by figuring out how much you can afford to borrow before deciding on the car to buy. It would be a good idea to opt for a cheaper vehicle, allowing you to borrow less at favorable terms. For instance, the right budget will guarantee a shorter repayment period and a lower interest rate.


Shop Around

Once you establish your budget, compare different car loan offers and settle on the best for your credit. Often, poor credit holders assume they have limited options. But by shopping around, you’ll be surprised how many car lenders are willing to finance borrowers with good, poor, and bad credit in NZ. Ready to strike a good deal with a potential lender that’s willing to give a better financing solution than others? Kiwi Car Loans is your brilliant financing partner all the time.


Get Pre-Qualified

After identifying a lender for your credit situation, get pre-approved before you visit a dealer. With that, you’ll have the upper hand when negotiating for a better financing deal. Getting a used or new car with bad credit doesn’t mean you deserve less. When approved, most dealerships will strive to get you the best offer to win your business


Get a Co-signer

Request a close friend or relative with excellent credit to cosign for you. It’s a great idea to boost your eligibility and secure your loan on better terms. But, you must keep up with your payments to avoid placing your co-signer’s credit on the line. Some lenders will only require security before approval.

You’ve found the best offer. What next? Read the bad credit loan contract thoroughly before signing. You want to be sure you agree to all the stipulations stated in the agreement.


Kiwi Car Loan is Your All in One Financier

Are you in a situation where you can’t postpone your car purchase until you’ve improved your credit? Worry not! No matter what, Kiwi Car Loans will help you walk the car ownership journey and make everything exciting. Sounds good, right?

Apply with us today, and let’s find the best deal for your credit from our pool of lenders. We’ll also organize refinancing if necessary and financing terms that will improve your credit score. Apply with us now!


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* Interest rate is indicative range only.


10.45% 19.95%

$27,921 Apply Now

* Interest rate is indicative range only.