0% Deposit Car Loans – Too Good to Be True?
You’ve seen the signs everywhere: “$0 deposit finance available!” It sounds like a dream, drive away today with no cash upfront. But is it really that simple? Let’s break down how 0% deposit car loans work in NZ and whether they’re the right move for you.
What Is a $0 Deposit Car Loan?
It means you don’t need to pay anything upfront to take the car home. Instead, the full purchase price is rolled into your loan, and you repay it over time with interest.
Pros of $0 Deposit Finance
✅ Drive away sooner – no need to save up thousands before upgrading your car.
✅ Emergency upgrade – great if your current car breaks down unexpectedly.
✅ Can build or rebuild credit (with good repayment history).
✅ Flexible options with terms from 12 to 60 months.
What to Keep in Mind
💡 Your repayments may be a bit higher – because you’re financing the full amount of the car, the weekly or monthly payments can be slightly more than if you put in a deposit.
💡 Not everyone will qualify – approval depends on a few things like your income, credit history, and overall financial situation. But don’t worry, we’ll walk you through it with no pressure.
💡 Extra costs can be rolled in – things like mechanical warranties or insurance might be added to your loan if you choose. We’ll always break it down clearly so you know exactly what’s included.
💡 Resale timing matters – if you plan to sell or trade the car early, it’s good to talk to us first about how that could affect your loan balance.
Real Example:
Purchase Price | Deposit | Loan Term | Weekly Repayment (Estimate) |
$10,000 | $0 | 48 months | ~$65–75/week |
$10,000 | $2,000 | 48 months | ~$55–65/week |
*Based on standard finance rates. Actual rates depend on the lender and your profile.
Is It Right for You?
It can be a great option if:
– You’re working or studying and want low upfront costs.
– You need a car urgently for work, family, or daily life.
– You have stable income and can commit to regular payments.
But avoid it if:
– You’re already juggling debt or living week to week.
– You plan to resell the car in under 12–18 months.
Pro Tip:
If you’re unsure, ask us for a quote with AND without a deposit – you might find that even $500 down saves you hundreds long-term.
0% deposit finance isn’t a scam – it’s a real, helpful tool for many buyers. But it’s not a one-size-fits-all solution. Always compare options, understand the total cost, and choose what works best for your situation. Talk to our team and we’ll supply you with a free quote and a fast application form.
