YOU’LL NEED TO FIND CAR FINANCE IN NZ 2022.

Unless you have an unlimited budget and can pay the price of a car in one go, you’ll need to find car finance. Even if you have all that cash ready to go, it makes sense to see whether or not there are cheaper deals out there. There are lots of different types of car finance available. Some require a deposit, some do not. So what type of car finance doesn’t require a deposit? Let’s take a look…

NO DEPOSIT CAR FINANCE

If you can find a no-deposit car finance deal, then you don’t have to put any money down at all to make that purchase. However, you will still be committing to making a set monthly payment for the term of your loan. And remember, with no deposit in car finance, you’ll still be responsible for paying any interest that is charged on the loan. You may also be expected to pay other fees and charges, such as admin costs. Although you won’t be paying any cash up front, the total amount you’ll have to pay for the car will be the same as someone who does have to put down a deposit. You may find that some car finance providers will only offer no deposit car finance to people who have a very good credit score. So you may need to improve your credit rating before you can find a deal that doesn’t require a deposit.

CAR FINANCE WITH A GUARANTEE EQUIVALENT TO A DEPOSIT

Car finance providers are businesses, after all, so you can expect them to aim to make as much money out of every deal as they can. There are lots of different types of car finance available. Some require a deposit and some do not. But what if there is no deposit car finance available? Well, you may be able to negotiate a guarantee equivalent to a deposit. This guarantee is a promise that you will pay the car finance provider back if you don’t make the payments on time. As with a deposit, the car finance provider will use your vehicle as security. If you don’t make the payments, they can take your car as payment instead. Like a deposit, you’ll need to make sure that the car finance provider is recorded as a secured creditor on your credit file. This makes sure that if you don’t keep up with your payments, they will be first in line to try and recoup the debt. If you can prove that you have a steady income and a history of making your payments on time, you may be able to get a car finance deal with a guarantee equivalent to a deposit. This will let you get the car you want without having to put down a deposit.

Source: https://highbeamcars.co.nz/what-type-of-car-finance-doesnt-require-a-deposit-can-you-get-car-finance-if-you-are-blacklisted/