How to arrange your car finance or loan deal

Choosing the right car can often take months of research, involving endless comparisons between different manufacturers and their models.

Yet when it comes to sorting out a car finance loan deal to buy that vehicle, would-be buyers often get it wrong. Research shows that while they haggle for the best deal on a new or used vehicle and will even haggle over an extra half a tank of petrol, they sign up for the first car finance loan deal they are offered.

NZ New has a number of car finance options suitable to balance your lifestyle and cash flow whilst maintaining a strong focus on reducing the overall debt. The options are available whether you source the vehicle through NZ New or not. In other words you don’t have to buy a vehicle through NZ New to get one of our great finance loan deals.

Here are some options in which NZ New Cars can facilitate on your behalf:

• Standard Car finance loan (Hire Purchase)
• Finance Lease Loan
• Operating Lease loan
• Car Finance loan with residuals or balloons
• Sale and lease back loan

For competitive quotes on any car or motor vehicle contact your nearest NZ New broker by calling 0800 NZ NEW Cars (0800 69 63 92)

We are also able to provide extended warranties on most makes and models through leading warranty companies with the push of a button. Contact us now for an extended warranty on your new car purchase or if your current vehicle warranty has expired.

Hire Purchase

Hire Purchase is a sensible approach for any one that needs to either upgrade or acquire a new or used motor vehicle. Funding your vehicle by way of Hire Purchase allows you to utilise your capital for other purposes.

Just consider these advantages of hire purchasing a car or vehicle:

• Tax Advantage - Where the vehicle is used for income producting purposes, interest charges and depreciation on the vehicle may be tax deductible.
• Flexible Instalments - By selecting the term and the residual value, you can tailor your monthly repayments to suit your lifestyle.
• Further Flexibility - An alternative line of funds from existing sources, e.g. banks and building societies, thus providing greater flexibility.

Suitable for New and used for both private and businesses.

Finance Lease

Finance Lease makes some of the benefits of leasing available to private and business customers. With a Finance Lease, the monthly repayments are fixed and are based on the original amount financed less the residual value of the vehicle at the end of the lease term. Acquiring your vehicle by way of a Finance Lease allows you to utilise your capital for other purposes.

Just consider these advantages of finance lease:

• GST claim - If you are GST registered, you can claim the GST content in the monthly payments.
• Flexible instalments - By selecting the term and the residual value, you can tailor your monthly repayments to suit your lifestyle.
• Further Flexibility - An alternative line of funds from existing sources, e.g. banks and building societies, thus providing greater flexibility.
• Tax advantage - If your vehicle is for business use, you can select the term of the lease to enhance your tax position. Less than 45 months your monthly rentals are a tax expense. Greater than 45 months you can also claim depreciation and interest costs.
• Security - The motor vehicle is the only security. Although, in some circumstances, a guarantee may be required. Suitable for New and used for both private and businesses.

Operating Lease

The lessor gives the lessee the exclusive right to possess and use the leased asset for a specific period and under specified conditions, but retains almost all risks and rewards of the ownership. The full amount of lease payments is charged as an expense on the lessee's income statement but no associated asset or liability (other than the liability of the accrued lease payment or rent) appears on the lessee's balance sheet. For this reason, operating leases are also called off balance-sheet financing. And, since the maintenance of the leased asset is usually the responsibility of the lessor, they are called also maintenance leases or service leases.

Suitable for New and used for businesses - Limited options for private buyers.

Car Finance loan with residuals or balloons (hire purchase)

Having a balloon allows you to reduce monthly cashflow and secure that vehicle that may have been out of reach. A 'balloon' payment is a sum that is usally at the end of the term but may be structured during the term if you have lump some moneys due at a particular time. You can make the balloon payment and keep the car - or part exchange it, using any surplus amount after making the final repayment, towards a deposit on your next vehicle.

Suitable for New and used for both private and businesses.

Sale and lease back loan

If you are a business that own your vehicles or are under finance and you need cash to put into the business then NZ NEW can assist with brokering sale and lease back. NZ New will facilitate one of our lease companies to purchase your vehicles and lease them back to you over a period of time. Speak to one of our brokers today about this sale and lease back option.