1. Secured Auto Loans
Before getting started with your car loan, your lender will need to ask for securities just in case you defaulted on your loan. When that happens, they will have legal right to seize your secured asset until you can pay off your balance. Most car loan companies in NZ require a security deposit before you can be approved. WIth CompareBear, you can sort out and determine secured auto loan providers to best suit your needs and income.
2. Unsecured Auto Loans
By the term itself, unsecured loans are not secured by an underlying asset. Lenders cannot possess any property or asset when borrowers fail to make payments. Because of the risk, borrowers are given higher interest rates than in a secured loan, and will depend on your overall credit profile and other factors.