No Credit Check Car Loans in New Zealand

Only a few specialist financiers will approve automotive finance in New Zealand without running a full credit check, but it is sometimes possible to secure car finance in this way. This type of finance can be useful if you need a car loan, and your credit history prevents you from having other types of finance approved.

A no credit check car loan is a relatively expensive type of car finance. These kinds of loans are the most costly on the market. The interest rates are generally very high, and so are the establishment and early exit fees.

Some lenders in this specialized area additionally do not afford you full freedom to choose the vehicle you want. Often, you will pay substantially more for the car than if you secured other types of automotive finance.

Many terms and conditions often apply. For example, approval might be conditional on a certain specified level of deposit to be paid by you. This helps the lender manage the risk of the loan. Often this deposit is substantial as it basically accounts for the acquisition cost (wholesale cost) of the vehicle. The loan amount is therefore only the profit margin built into the sale, which minimises the lender’s or dealer’s risk.

Sometimes these arrangements go one step further and the lender offers the client an ‘interest free’ loan. The interest is often not free, strictly speaking, but rather built into the loan amount. Each payment the client makes is therefore profit, which is a low-risk proposition for the lender.

No credit check car loans are available, and they might be an option to consider, depending on your individual circumstances. If this is the only option available to you, you could hypothetically use it as a stepping stone on the road to repairing your credit history. A successful repayment record with a small to moderate no credit check car loan over, say, a 12-month term might help you demonstrate to a range of reputable lenders that you take your repayment obligations seriously.

Reputable lenders are willing to give people a second chance – provided you demonstrate positive changes in your financial situation and dealings. A successful discharge of a no credit car loan might be one way to show reputable, mainstream lenders that your financial circumstances have changed for the better.

Call or e-mail us now for an obligation-free car finance assessment. At CarLoans.co.nz we’re always happy to discuss your automotive finance options.