News | Personal Finance
29 Mar 2024 23:24
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business > Features > Personal Finance

    Car loans – look before you buy

    There is a lot to think about when you buy a car – fuel efficiency, safety, reliability and, of course, the cost. Buying a car can be a big expense.


    How much you spend on a car and how much you choose to borrow to pay for that car are decisions that may have a big impact on your future net worth (the difference between what you own and what you owe).

    These tips from the web site www.sorted.org.nz can help you make the decision that is right for you.

    Set your budget
    Work out how much you can afford to spend on a car before you go out shopping – and don’t forget to include annual running costs, insurance and maintenance in your budget.

    Know your options
    To find a car loan that doesn’t cost the earth, look at all your finance options before you go near the car yard.

    Banks and credit unions offer pre-approved loans which let you know in advance what you can spend. You may also be able to adapt a loan you already have to include finance for your car.

    If you’re a homeowner, you may be able to extend your mortgage or tap into your revolving credit loan. But if you do extend your mortgage, it’s a good idea to make additional repayments to get the car-related debt paid off faster.

    Finance companies offer a wide range of loans including hire purchase and credit sale agreements sold through dealers. You may be able to apply for loans directly with the finance company. Otherwise you will sign up through the car dealer.

    Find the best interest rate
    Interest rates on car loans can vary widely so it’s best to shop around.

    You may find it easier to get access to cheaper loans if you have an existing relationship with the lender.

    Check the fees and charges
    There are always fees and charges to pay when you organise a loan and the documents you are given should show these clearly.

    By law, lenders must provide you with a ‘disclosure statement’ outlining all the fees and charges, what will happen if you can’t make payments, what interest rate you will be charged and how interest is calculated. Make sure you ask for a copy of the disclosure statement and read it carefully before signing up for a loan.

    Take your time
    Most of all, take your time to decide. When you’re borrowing money a rushed decision can be costly.

    To find out more about car loans and managing debt, visit the Retirement Commission’s free and independent website www.sorted.org.nz. Sorted is packed with information, tools and calculators to help you manage your money.

    © 2024 Sorted.org.nz, NZCity

     Other Personal Finance News
     10 Sep: Spring clean your finances
     13 Aug: Plan ahead to give yourself a debt-free Christmas!
     10 Jul: Wise up to clear credit card debt
     07 May: Ways to prepare for the unexpected
     30 Mar: Time for a financial progress check
     10 Feb: Studying up on NZ Super
     10 Jan: Managing the back-to-school bills
     Top Stories

    RUGBY RUGBY
    The Chiefs are backing young first-five Josh Jacomb to step up in tonight's Super Rugby clash against the Crusaders in Christchurch More...


    BUSINESS BUSINESS
    New Zealand Food Safety is supporting Matakana Smokehouse in its recall of a specific batch of two of its salmon products because of the possible presence of Listeria More...



     Today's News

    Rugby League:
    NRL Good Friday: Bulldogs take on desperate Rabbitohs, Broncos renew rivalry with Cowboys 23:07

    Law and Order:
    Gisborne Police have charged three people with graffiti vandalism and have identified a fourth suspect after the city's rainbow crossing was defaced with white paint earlier this week 21:57

    Entertainment:
    Heidi Klum would've "loved" a role in 'Griselda' 21:53

    Law and Order:
    Police have left the scene of a party that erupted into a disturbance on Auckland's Princes Wharf 21:37

    Entertainment:
    Tom Schwartz "made out" with Scheana Shay 12 years ago 21:23

    Entertainment:
    Mel B vowed she would never marry again following her split from Stephen Belafonte 20:53

    Entertainment:
    Eva Mendes has branded her mum "incredible" for retaining her sense of humour during her battle with cancer 20:23

    Entertainment:
    Katie Maloney doesn't "hang out" with her 'Vanderpump Rules' co-stars 19:53

    Entertainment:
    Jessica Chastain found it "difficult" to film 'Mothers' Instinct' with her showbiz pal Anne Hathaway 19:23

    Rugby:
    The Chiefs are backing young first-five Josh Jacomb to step up in tonight's Super Rugby clash against the Crusaders in Christchurch 18:57


     News Search






    Power Search


    © 2024 New Zealand City Ltd