Organising vehicle finance has become more streamlined in New Zealand with the launch of Auto Finance Direct’s new online platform. For anyone needing finance to buy a vehicle, for personal or work use, AFD’s platform is designed to make the process fast, efficient and stress-free.
The platform offers a user-friendly experience, allowing applicants to apply for finance directly from their phone, tablet or laptop. A special feature is the opportunity for potential borrowers to estimate their loan repayments before applying for a loan. If the figures look feasible, they can progress to a user-friendly online application process.
Auto Finance Direct aren’t new to the vehicle finance market in New Zealand. In fact, they’ve been lending money to Kiwi vehicle buyers for more than 15 years. What is new, however, is the speed, simplicity and transparency of their online lending process.
Spokesperson for Auto Finance Direct, Dillon Martin, explains how the platform is transforming the vehicle finance landscape in New Zealand.
“At Auto Finance Direct, our focus has always been on providing a straightforward and accessible finance solution. This new platform takes that vision further, allowing customers to secure the finance they need, quickly and conveniently, without the need for in-person meetings.”
Auto Finance Direct’s streamlined approach to online finance ensures loan applications are processed efficiently, giving customers faster access to the vehicles they need. The entire application and approval process is handled online, reducing paperwork and delays.
The platform’s superpower is the vehicle finance calculator, which gives applicants a clear understanding of their financial commitment and obligations before proceeding with a loan. This tool allows users to input the vehicle price, interest rate and repayment terms, providing an instant estimate of repayments. The resulting figure is indicative only, because the actual interest rate charged will depend on the customer’s credit history.
Dillon Martin highlights the significance of this tool: “Understanding financial commitments is crucial for any borrower. With our finance calculator, applicants can get a clearer picture of what their repayments will look like, ensuring there are no big surprises later in the process.”
After a customer has used the calculator and is confident they can manage repayments, they progress to the step-by-step online application. Each step has been simplified, so that the applicant only has to tick boxes, select from drop-down menus or key-in a few words. The application process takes around 5 minutes to complete.
Preparing for a loan application
Applying for a car loan? First, take a hard look at your credit score – it’s the gatekeeper that decides whether you get behind the wheel and how much interest you’ll fork over. Think of your credit score as a report card for your financial habits, grading you on a scale from 300 to 850. Five key factors come into play when calculating your credit score: your history of making payments on time, the amount of debt you’re carrying, how long you’ve had credit, the variety of credit types in your profile, and any recent requests for new credit.
A stellar credit score sends a strong signal to lenders: you’re a borrower they can count on.
Figuring out how much you can afford to spend is the first hurdle in making smart financial decisions. Start by sizing up your income and expenses to get a grip on what’s coming in and going out.
Financial stress is a common companion for many car buyers, but it doesn’t have to be yours – by setting a realistic budget before you start shopping, you can steer clear of trouble and enjoy the ride. The first step in taking control of your finances is to Face the facts: add up your income, tally your monthly expenses, and confront any debt that’s been weighing you down.
A common guideline is that your car expenses, including loan payments, insurance, and maintenance, should not exceed 15% of your monthly take-home pay.
Rather than rushing into a car loan, take a step back and get a clear picture of your financial situation. By setting a budget that aligns with your values and goals, you’ll be driving away in a new ride without a care in the world – or at least, without a nagging sense of financial unease.
Researching Loan Options
When preparing for a car loan application, one crucial step is researching loan options. Know your loan options and you’ll be ahead of the game – that means researching what banks, credit unions, and online lenders have to offer. Before committing to a loan, pull out your magnifying glass and scrutinize the interest rates, loan terms, and fees – the devil is in the details. Lenders can offer drastically different interest rates, and even a tiny discrepancy can add up to a small fortune in savings over the years.
Loan terms typically fall within a three-to-seven-year window, and this timeframe deserves some serious thought. Shorter loan terms often come with higher monthly payments but lower overall interest costs, while longer terms may reduce monthly payments but increase the total interest paid. As you weigh your borrowing options, be mindful of the extras – like origination fees or prepayment penalties – that can bump up the overall cost of taking out a loan.
Finalizing The Loan Agreement
Once you have navigated through selecting the right lender and deciphering loan offers, the next essential step is finalizing the loan agreement. Here, you formally agree to the terms, accepting your borrower obligations and getting a clear picture of what’s expected. At this point, reading the loan document meticulously is imperative. Ensure that the interest rates, loan tenure, monthly payment amounts, and any associated fees reflect what was initially discussed.
Confirming the agreement usually requires a quick proof of identity and a show of your insurance papers. It is common for lenders to require proof of insurance before releasing loan funds, so ensure this is sorted out well in advance. Communicating regularly with your lender pays off in the long run. If any issues arise during the loan term, proactive communication can help mitigate problems swiftly.
Once all paperwork is thoroughly understood and signed, you have effectively cemented your commitment. A thorough review of your loan terms isn’t just about covering your bases – it’s about ensuring a stress-free repayment process that lets you focus on the open road ahead.
Also Read: The Role of Automation in a Mortgage Reporting Guide
