The Complete Guide to Getting Your First Car Loan – Fast!
Friday, 07 May 2021
While owning a new set of wheels is exciting, acquiring it may be challenging for many, especially when relying on vehicle financing for the first time. But one big question remains: why is it that some people get approved for vehicle loans NZ faster than others?
The reality is getting a car loan doesn’t have to be hectic. As a first-time car buyer, you can fast-track your car loan approval by following this complete guide to getting your first car loan. Let’s find out more!
Have the Right Documentation
There is more to getting car loan finance approval than getting your signature on that agreement. The finance company wants to validate your ability to repay. Ensure you have proof of your income, like an employer’s contract or a computerized pay slip accompanied by proof of identity like your driver’s license or passport. Lack of proper documentation can delay the approval process.
Estimate Your Down Payment
In rare cases you may have to out a down payment towards the loans to finance a car, it will be good to determine this amount. You should also consider if there may be any fees to process the motor vehicle finance. Some auto finance companies or dealers may need you to pay some fees besides the down-payment. Reach out to your preferred car loan provider or Kiwi Car Loans in advance to confirm the requirements.
Establish How Much You Are Eligible For
Your monthly income and current debts will influence your car finance eligibility. Often, you will need to take 20-40% of your monthly income for the monthly car loan repayment. Seek to know the applicable percentage from your lender’s car loan calculator and determine what you qualify for.
Car loan calculator:
Know Your Credit History
Your credit score will determine your loan approval and the terms placed on your financing. Knowing your credit score in advance will help resolve the proper steps when securing the loan. For instance, if you don’t have credit, opening a bank account earlier and keeping your account healthy will increase your eligibility and land you excellent car finance deals. Alternatively, you may have to save more for the car. We at Kiwi Car Loans will have to do only one credit check to determine which lender to go with, if you have multiple credit checks done by going to different lenders it can affect you credit score.
Settle on the Right Financier
With the above parameters in check, shop around for a lender and be keen enough to spot a good offer. You want a loaner that suits your budget and offers you affordable rates. But remember, lower rates alone don’t define a good deal. Analyze other factors attached to the loan, like the repayment term, down payment, among others. If they are convincing, get on board. Kiwi Car Loans can help you get the best rates in the market as per your affordability and financial standing.
Maximize Your First Car Loan Experience with Kiwi Car Loans
Auto finance companies work with different financing terms and processes. Us at Kiwi Car Loans, make the process to getting your finance approval seamless and hassle-free. We work with the most reputed lenders in the market. As our specialist finance brokers can determine which lender would suit you best you may even get your application approved the same day of application!
Ready to finance a car and find the best rates in NZ? Talk to us today for a fast loan approval process!