Car loan rates in New Zealand range from around 9.95% p.a. for well-qualified borrowers at major banks to 26%+ p.a. for adverse credit borrowers at specialist lenders. Your actual rate depends on your credit profile, the vehicle age, and the loan term.
Bank secured car loans: 9.95–15.95% p.a.
MTF Finance: ~10–24% p.a.
Finance Now: ~9.95–22% p.a.
Dealer finance: 10–18% p.a. standard (0% promotional deals available)
Avanti Finance: ~13–26% p.a.
These are ranges — your rate will depend on your application.
Current Car Loan Rates by Lender (NZ 2026)
Major Banks
| Bank | Secured car loan rate | Notes |
|---|---|---|
| Kiwibank | ~9.95–14.95% p.a. | Green vehicle rate also available |
| ANZ | ~9.95–15.95% p.a. | Dealer network, large limits |
| ASB | ~9.95–15.95% p.a. | Online application |
| BNZ | ~9.95–15.95% p.a. | Competitive |
| Westpac | ~9.95–15.95% p.a. | Green vehicle loan |
Banks generally offer the lowest rates for new or near-new vehicles to borrowers with excellent credit. They are more restrictive about older vehicles (typically won’t finance vehicles 10+ years old).
Specialist Lenders
| Lender | Rate range | Vehicle restrictions |
|---|---|---|
| MTF Finance | ~10–24% p.a. | Most vehicles accepted |
| Finance Now | ~9.95–22% p.a. | Including older vehicles |
| Avanti Finance | ~13–26% p.a. | Wide range |
| Go Car Finance | ~12–24% p.a. | Includes older vehicles |
Dealer Finance
Dealer finance can include manufacturer-backed finance (e.g., Toyota Finance, Hyundai Finance) and finance arranged through the dealer’s partnerships with lenders.
| Type | Rate range | Notes |
|---|---|---|
| Manufacturer 0% deals | 0% for term | Usually limited models, conditions apply |
| Dealer standard rate | ~12–18% p.a. | Often higher than going direct to bank |
| Dealer-arranged bank/MTF | ~10–16% p.a. | Same rates as applying direct |
Total Cost: What $20,000 Costs at Different Rates
| Rate | Monthly repayment (5yr) | Total interest paid |
|---|---|---|
| 9.95% | $424 | $5,440 |
| 12% | $445 | $6,700 |
| 15% | $475 | $8,500 |
| 18% | $508 | $10,480 |
| 22% | $554 | $13,240 |
Based on $20,000 over 5 years, excluding establishment fees.
The difference between 9.95% and 18% over a 5-year $20,000 loan is over $5,000. Shopping around for the best rate is worth the effort.
Factors That Affect Your Rate
Credit score: The biggest single factor. Excellent credit unlocks the lowest advertised rates.
Loan-to-value ratio (LVR): Lending $15,000 against a $25,000 vehicle is different risk to $20,000 against a $20,000 vehicle. Some lenders adjust rates based on this.
Vehicle age: Most banks will not finance vehicles older than 10–12 years. Specialist lenders are more flexible but may apply higher rates for older vehicles.
Vehicle type: Standard passenger cars are straightforward. Imported grey market vehicles, modified vehicles, or motorsport cars may be harder to finance or attract higher rates.
Loan term: Longer terms mean smaller monthly payments but more total interest. Shorter terms typically have lower rates with some lenders.
New vs Used Vehicle Rates
Rates for new vehicles are typically at the lower end of any lender’s range. Used vehicles may attract slightly higher rates from the same lender.
For vehicles over 10 years old, your options narrow to specialist lenders who accept older security. Rates for older vehicles are typically 2–4% higher than for late-model vehicles.