Exploring Alternative Options for Financing a Car with Bad Credit in NZ

Having bad credit can be a major hurdle when it comes to financing a car in New Zealand. Banks and other traditional lenders are often reluctant to offer car loans to people with bad credit, leaving many to wonder what their alternative options are. However, there are still a number of ways to finance a car with bad credit, it just takes a bit of research and creativity.

Understanding Bad Credit

Before we dive into exploring some of the alternative options, it’s important to understand what bad credit is and how it affects car loans. Bad credit is a term used to describe someone’s creditworthiness, which is determined by their credit score. People with bad credit typically have a low credit score and may have a history of missing payments or defaulting on loans. This can make it difficult to get approved for a car loan from a traditional lender.

Alternative Options for Financing a Car with Bad Credit

Although it may seem like a daunting task, it is still possible to finance a car with bad credit. Here are some alternative options available to those with bad credit in New Zealand:

1. Car Finance Brokers

Car finance brokers in NZ are a great option for those with bad credit as they specialize in helping people with bad credit secure car loans. These brokers have relationships with a variety of lenders, so they can find the best possible deal for their clients. They are also experts in the field, so they can help you understand the car loan process and what you need to do to secure financing.

2. Personal Loans

Another option for financing a car with bad credit is to take out a personal loan. These loans can be used to cover the purchase of a car and can be easier to secure than a car loan. However, it is important to remember that personal loans typically have higher interest rates than car loans, so this should be taken into consideration.

3. Leasing

Leasing a car is a great option for those with bad credit as it typically does not require a credit check. This makes it a great option for those who are unable to secure a car loan due to their credit score. However, it is important to remember that leasing a car is more expensive in the long run than buying one outright.

4. Save for a Down Payment

If you want to buy a car outright but don’t have the money to do so, then saving for a down payment is a great option. The more money you are able to put down, the lower your monthly payments will be. This can help you secure a better loan and make it easier to pay off the loan in the future.

5. Invest in a Used Car

If you are looking to save money, then investing in a used car is another great option. Used cars are typically much cheaper than new cars and can be easier to finance with bad credit. Just make sure to do your research and inspect the car before making a purchase.


Financing a car with bad credit can be a challenge, but it is still possible. By exploring these alternative options, you can find a car loan that works for you. Just remember to do your research and compare rates so you can find the best deal possible.

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