A new car can be a big purchase for a person or family, and there’s always an overwhelming amount of information to consider (even before you start looking at the cars themselves). The first priority you’ll have is organising the finance of your car, and that’s where we can help you. Today we’re going to tackle a few tough (but necessary) tips that will help you to predict what you can and cannot handle car-wise and finance wise.

If you’re buying a used car in New Zealand, then here are a few questions you’ll need to answer before you start browsing:


Will depreciation affect you?

We all know that a car loses a lot of value the moment it’s driven away from the dealer, but did you know that most new cars will incur a whopping 50% depreciation within the fist three years of a car’s use? Because of this, we can never treat cars as investments: we should treat them as tools. Consider a car that will maintain its quality rather than style: if you choose to resell your car after those three years then you can present your car as a sturdy set of wheels that’s ready to last many years more.

If you’re buying a used car then, fortunately for you, most of this dramatic depreciation has already taken place. There are, however, other financial risks that you’ll need to consider when buying used, but preparation is key and Car Finance is here to prepare you!

Money and maintenance

There’s a sweet spot between buying new cars and used cars that could potentially see you covered for some of those big bag maintenance bills: buying a new used car that’s still under it’s warranty. Even if you need to borrow extra money to finance your vehicle, it’ll save you extra money and worry in the future as you’ll be avoiding the inevitable repairs that come with an older, worn car.


As with any big spend, you should make a sound financial decision and base it off your current situation (or your family’s current situation). Consider your down payment options or trade-in options and go from there.

Remember, if you’re struggling to handle the cost of a car in New Zealand, Car Finance are always available for advice, and we can tailor a car finance package to suit you!