Car finance NZ: what it costs
See what a car loan costs each week and all up, then have a licensed broker check yours.
$155 a week
$40,214 paid back in total
Estimate for a $30,000 car over 5 years at UDC Finance's 11.95% fixed rate with its $249 fee, checked 21 Oct 2026. Fees and conditions are below.
What will a car loan cost me in total?
Put in the car price and the rate you've been quoted. You'll see each payment, what you pay back all up and how much of that is interest. Run the dealer's quote next to a loan you arrange yourself to see what the dealer's finance adds.
For extra repayments or a full schedule, use the full car loan calculator. Nothing you type goes anywhere unless you send the enquiry form.
How does car finance work in NZ?
Car finance is a loan to buy a car, paid back over anything from 6 months to 7 years. Which kind you take changes your rate:
- A secured car loan uses the car as the lender's security, so the lender can take it back if payments stop.
- An unsecured personal loan leaves the car yours outright, at a higher rate. At Harmoney, 7.89%–21.79% p.a. secured becomes 7.99%–24.99% p.a. unsecured.
- Dealer finance is arranged at the yard, through the dealer's finance company.
If you're unsure which suits you, a broker can go through it with you.
What are NZ car loan rates in October 2026?
Car loan rates run from 7.89% to 29.99% p.a. at the 13 lenders Compare Loans checked. Where you land depends mostly on your credit history and whether the car secures the loan. On $30,000 over 5 years, that is the difference between paying back $36,510 and $58,748.
| Lender | Rate (p.a.) | Fee | Each week | Paid back in total |
|---|---|---|---|---|
| Harmoney7.89%–21.79% p.a. | 7.89%–21.79% | $150 | $140–$191 | $36,510–$49,556 |
| Finance Now8.25%–29.95% p.a. | 8.25%–29.95% | $215 | $143–$226 | $37,126–$58,748 |
| Toyota Finance7.95%–14.30% p.a. | 7.95%–14.30% | Up to $550 | $143–$165 | $37,134–$42,949 |
| Marac8.95%–13.95% p.a. | 8.95%–13.95% | $249 | $144–$162 | $37,555–$42,064 |
| Gem by Latitude8.99%–28.99% p.a. | 8.99%–28.99% | $240 | $145–$221 | $37,570–$57,345 |
| UDC Finance9.05%–11.95% p.a. | 9.05%–11.95% | $249 | $145–$155 | $37,776–$40,358 |
| AA Money9.40%–12.15% p.a. | 9.40%–12.15% | $249 | $146–$156 | $38,072–$40,530 |
| Westpac (EV or hybrid)9.99% p.a. | 9.99% | $0 | $147 | $38,170 |
$30,000 over 5 years, lender's fees included, the cheapest 8 of 13 lenders. Rates from each lender's website, checked 21 Oct 2026.
See which lenders would consider meHow much is a $30,000 car loan per week?
$155 a week over 5 years, and $40,214 paid back all up, at UDC Finance's top rate of 11.95% p.a. A lower rate or a shorter term brings that total down.
A longer term makes each payment smaller and costs you more overall: $30,000 is $35,732 all up over 3 years and $44,309 over 7 years. Choose the shortest term your budget can carry comfortably.
| Loan at 11.95% p.a. | Each week | Paid back in total |
|---|---|---|
| $10,000 over 5 years | $51 | $13,294 |
| $20,000 over 5 years | $102 | $26,589 |
| $30,000 over 3 years | $229 | $35,732 |
| $30,000 over 5 years | $153 | $39,883 |
| $30,000 over 7 years | $122 | $44,309 |
| $50,000 over 5 years | $256 | $66,472 |
Estimate only, not a quote or an approval. Your rate depends on your credit and the lender. Rates checked 21 Oct 2026.
Ask a broker what my rate would beShould I arrange finance before the car yard?
Yes, if you can. Walking in with your own approval gives you a rate and a total to hold the dealer's offer against. Dealer quotes can cost more, through a higher rate and add-ons rolled into the loan. In this example, those two things add $6,331 to what you pay back.
UDC Finance and AA Money approvals last 30 days, and Oxford Finance's last 14.
| Finance | Rate (p.a.) | Add-ons | Each week | Paid back in total |
|---|---|---|---|---|
| Arranged before the yard11.95% p.a. | 11.95% | $0 | $155 | $40,214 |
| Dealer quote14.95% p.a. | 14.95% | $0 | $165 | $42,992 |
| Dealer quote with add-ons14.95% p.a., $2,500 of add-ons | 14.95% | $2,500 | $179 | $46,545 |
$30,000 over 5 years with UDC Finance's $249 fee added. The 14.95% dealer rate and $2,500 of add-ons are examples, not lender offers.
What fees and add-ons come with car finance?
Expect up to five fees on top of the interest, from a one-off set-up fee to a charge for paying off early. You may also be offered add-ons when you sign: mechanical breakdown insurance, payment protection, or GAP, which covers what you still owe if the car is written off.
Add-ons are optional, and a lender can't make you buy one unless it's reasonably needed. Rolling $2,500 of them into the loan costs you $3,326, or $826 more than paying upfront. Car insurance is different: AA Money and Oxford Finance require it.
| Fee | When you pay it | What it costs |
|---|---|---|
| Set-up fee | Once, added to the loan | $0–$550 |
| PPSR fee | Once, on a secured loan | About $7–$10 |
| Account fee | With each repayment | $0–$8 a month |
| Early repayment fee | If you pay off early | $0–$25, plus any loss |
| Default interest | On overdue amounts | Your rate plus 5%–6% p.a. |
Fees at the 13 lenders checked 21 Oct 2026.
Does a deposit or a balloon change the cost?
A deposit lowers what you pay back. A balloon lowers each payment and raises the total. You pay no interest on the money you put down, though you don't need a deposit to get a loan: UDC Finance, AA Money and Marac can lend the full price if you're approved.
| Deposit on a $30,000 car | Borrowed | Each week | Paid back in total |
|---|---|---|---|
| $0 | $30,249 | $155 | $40,214 |
| $5,000 | $25,249 | $129 | $33,567 |
| $10,000 | $20,249 | $104 | $26,920 |
A balloon is a lump sum you owe with the last payment. On a $45,000 ute, a 30% balloon saves you $166 a month and costs $3,569 more in interest. If the ute sells for less than $13,500 when it's due, you cover the difference.
| $45,000 ute | Each month | Due at the end | Paid back in total |
|---|---|---|---|
| No balloon | $1,000 | $0 | $59,992 |
| 30% balloon | $834 | $13,500 | $63,561 |
Estimate only, not a quote or an approval. Your rate depends on your credit and the lender. Rates checked 21 Oct 2026.
Can I cancel car finance after signing?
Yes. You get a short cooling-off window once you receive the loan paperwork:
- 5 working days if it's handed to you;
- 7 working days if it's emailed;
- 9 working days if it's posted.
Tell the lender in writing. You repay the money, plus reasonable costs and interest for the days you had it. If you bought on dealer credit and keep the car, cancelling ends only the loan, so you'd still pay the cash price within 15 working days.
What if I can't keep up the repayments?
Talk to your lender straight away and ask for a hardship change. Missed payments add default interest of an extra 5% to 6% p.a. If it ever comes to repossession, the lender must follow strict rules. You get:
- a warning notice at least 15 days ahead, unless the car is at risk;
- collection only from 6am to 9pm, Monday to Saturday, never on a public holiday;
- a notice within 14 days, then 15 days to catch up, settle or bring a buyer;
- a statement within 7 days of any sale (you owe what the sale didn't cover);
- reasonable notice before a device stops the car remotely.
MoneyTalks (0800 345 123) is free and can help you make a plan.
Who can get a car loan in NZ?
If you're 18 or over, live here and earn enough to cover the repayments, most car lenders will look at you. Each then sets its own rules on residency, income and credit history.
| What they ask | UDC Finance | Harmoney | MTF Finance | Oxford Finance |
|---|---|---|---|---|
| Minimum age | 18 | 18 | Over 18 | 18 |
| Residency | Citizen or resident visa | Citizen or permanent resident | Resident or visa holder | Citizen or resident visa |
| Income | Assessed by UDC | Paid employment | Regular income | Over $30,000 a year |
| Credit file | Assessed by UDC | No defaults | Sets your rate | Assessed by Oxford |
From each lender's page, 21 Oct 2026. Oxford Finance asks applicants under 21 for a co-borrower.
Applying takes five steps:
- 1
Get a quote first. Harmoney and Gem quotes don't touch your credit score.
- 2
Apply with ID, proof of address and bank statements.
- 3
The lender checks you can afford it and looks at your credit file.
- 4
Read the disclosure statement: the rate, the fees, any add-ons and the total to repay.
- 5
Sign, and the lender pays the seller. Gem pays within 24 hours of your signed contract.
Can I finance a private sale or Trade Me car?
Yes. UDC Finance, Marac, Harmoney and Gem all lend on private sales, and UDC Finance covers Trade Me auctions too. UDC Finance and Marac will pay the seller for you. Before you hand over any money, do two quick checks:
- search the car on the PPSR for under $3, to make sure no one else has a loan secured on it;
- remember the Consumer Guarantees Act protects you when you buy from a dealer, not from a private seller.
What about bad credit, EVs or refinancing?
- With bad credit, some lenders will still look at you, though every one checks and none can promise a yes. See bad credit loans.
- For an EV or hybrid, Westpac's EV loan is 9.99% p.a. against 13.90% standard: $637 a month instead of $696 on $30,000 over 5 years.
- On a tight income, Good Shepherd NZ's Good Loans lend up to $7,000 with no interest or fees, for a car worth up to $10,000.
- To refinance, Finance Now will take over an existing vehicle loan.
- For a work vehicle, see business loans.
- For an older car, an unsecured loan is the usual route, at a higher rate. See personal loans.
How does Compare Loans match you with a broker?
You fill in a short form, and one licensed broker gets in touch. They check which car lenders on their panel would consider you, then help you make one application instead of applying all over town.
Compare Loans doesn't lend money or give advice, and passes nothing on until you send the form. The broker will tell you who they are and send their disclosure statement before anything else.
What else do people ask about car finance?
Can I sell or trade in a car with finance owing?
Yes, but the loan gets paid off as part of the sale. The buyer or the dealer pays your lender what you owe out of the sale price, and the car is released. If it sells for less than you owe, you cover the gap or roll it into your next loan, where it keeps costing interest. Ask your lender for a settlement figure before you agree a price.
What if a financed car is written off or stolen?
You still have to repay the loan. Your insurer pays out the car's insured value, and if that's less than you owe, the difference is yours to pay. GAP insurance covers that gap, but you can only buy it when you buy the car. AA Money and Oxford Finance require you to insure a financed car.
What if my financed car breaks down?
You still need to keep up the repayments, because the loan and the car are separate. If you bought from a dealer, you can ask them to put the fault right under the Consumer Guarantees Act. A private sale doesn't have that cover, so mechanical breakdown insurance, if you bought it, is what pays for the repairs it lists.
Can I pay off a car loan early?
Yes, and it cuts the interest you pay. Harmoney, Gem, ANZ, ASB, BNZ and Westpac don't charge you for it. Oxford Finance charges $8, MTF $17 and Toyota Finance $25, and some lenders add a charge for the interest they lose.
Is 0% car finance really free?
It charges no interest, but it isn't always the cheapest deal. Check the dealer's quote for fees, any balloon payment due at the end, and whether the car costs more than its cash price. Then compare the total you'd pay back with a loan you arrange elsewhere.
What is the cheapest car loan in NZ?
The one with the lowest total once every fee is in. Harmoney advertises the lowest rate, from 7.89% p.a., with Toyota Finance close behind from 7.95% p.a., but those rates go to people with strong credit. At 7.89%, $30,000 over 5 years would cost you $36,585 all up, against $40,470 at UDC Finance's top rate and $41,790 at ANZ.
Does a car loan quote affect my credit score?
Not if the lender uses a soft check; only a full application leaves a mark on your file. Harmoney's rate check is soft, and Gem gives a tailored rate "with no impact to your credit score". Try not to make several full applications close together, because each one shows up.
What if I was sold add-ons I didn't want?
Complain to the lender in writing and ask for the add-on to be cancelled and refunded. If that doesn't sort it, the lender's free dispute resolution scheme can step in; Harmoney's, for example, is Financial Services Complaints Ltd (FSCL). A free financial mentor through MoneyTalks (0800 345 123) can help you with the complaint.
Can a licensed broker check my car loan?
Answer three short questions and a licensed broker checks which lenders would consider you for the car.
Compare Loans refers you to a licensed broker and is paid a referral fee by the broker. This is not a loan application. How Compare Loans makes money