Helpful Car Finance Questions & Answers 2024


Finding finance for your new vehicle might seem like a difficult process, but we’re here to make it as simple as possible.

It is common to have a few questions when it comes to financing a car, we have compiled the answers to those we are asked the most to help you. 

If your question is not included below, please contact us.


Why finance at Dave Allen Motors?

Our finance is super fast, competitive, and hassle-free. One of our Business Manager's will tailor a finance package that you are completely comfortable with, one that suits your budget and your lifestyle.


Will I qualify for No Deposit car finance?

In most cases, we can approve customers for no deposit car finance. To know if you qualify it is best to apply for a no-obligation pre-approval by completing our online application form.


Why shouldn't I use my home loan to finance my new car?

Sometimes people use their home loan to finance other large purchases such as a boat, or overseas holiday. But putting the car "on the house" may not be your best solution. If you add your vehicle payments to your mortgage you may pay interest for much longer, making the overall final cost significantly higher. 


Do you lend to clients on the benefit?

Yes, we do – it all comes down to affordability and the size of the loan, and type of vehicle you are purchasing. However, you may run the risk of a higher interest rate due to the low residual value of your car. Ask our business manager for more details, as everyone's situation is different. Or apply online now and we will contact you. 


Is there a minimum age for a loan?

Yes, 18 is the minimum age to enter into a contract.


Can I apply for finance with a learner's driver's licence?

No, the minimum driver's licence we require is a restricted licence.


I’m self-employed, can I still get car finance?

Yes, in some cases it may even be easier to obtain a pre-approval if you have been operating a business for a number of years. Assuming that you are interested in reaping some of the tax benefits that come with financing a car for business use.


I have defaulted on my credit history. Does this mean I can’t apply?

No – one of our business managers will help as much as possible to get your vehicle finance approved, even with defaults on your credit history. Of course, you must be prepared to accept higher-than-average interest rates.


How long does it take to get an answer?

Applications for finance received before lunch are answered in the afternoon of the same day; applications received after lunch are answered the next business day, if not before. However, wherever possible, we aim to respond to your application within the hour. If your application is urgent, please call us after submitting the loan application.


How much can I borrow?

The most important factor in determining how much you can borrow is affordability – or how much the repayments will be compared to how much disposable income you have. We work this out based on your current income and expenses. To find out how much you can borrow, use our online calculator.


How long is the term of the loan?

We offer terms from 12 - 84 months. Subject to approval.


Can I get approval before I have picked a vehicle?

Yes absolutely, If you have a type of car in mind, it's also helpful to include it in your application. We can change the vehicle you finally decide before finalising your loan.


Can I change the amount of my loan after it is approved?

Yes. If you want to increase the amount, it simply needs to be approved by us (you won't need to fill in another loan application). Just speak to our Business Manager who will organise it for you.


Do you approve loans with clients with bad credit?

It's more difficult to get an application approved with bad credit however we do get loans approved of this nature depending on the circumstances. We need a complete application and any additional information you can provide us is a great help to get a better picture.


What are your interest rates?

At Dave Allen Motors our annual interest rates range from 8.95% - 19.95% The rate you are charged will depend on your personal circumstances taking into account a number of factors, including:
- your credit history
- how much do you want to borrow
- the term of your loan
- your other financial commitments
Want to know what interest rate you are eligible for? We need to understand a little more about you and your circumstances so please fill out an application form and we will get back to you. If you have any further questions regarding interest rates please contact us.


Can I include on-road costs and insurance in my car loan application?

Yes, you can include all costs related to purchasing your new (or used) vehicle.


Do you offer insurance?

Yes. To find out about our insurance products click here. We can include all your insurance in your finance.


How do I make payments to the loan?

Payments can be structured weekly, fortnightly, or monthly using an automatic payment from your bank.


Can I pay the loan off before the end of the term?

Yes, however, there is a small early settlement fee in most cases. When completing the loan application, be sure to ask what this is if you intend to pay off the loan before the end of the term.


What will I need to bring with me or email to you?

When you come in and see us, bring with you a one-month bank statement showing your pay going into your account, your ID such as a driver's license or passport, and details of any other loans or payments you are making.


Can I insure my car repayments in case I become unemployed and am unable to repay?

Yes, you are able to ensure your car repayments. Dave Allen Motors has teamed up with Autosure NZ to provide you cover in case you are unable to meet your car repayments resulting from involuntary unemployment, hospitalisation, disability, or in the event of trauma. ACC only pays to a maximum of 80% of your income – How would your household react to an instant 20% pay cut? - Talk to our business manager for more information.


What is a Guarantor?

A guarantor is someone who agrees to pay your loan if you don't keep up the payments.


Who can I talk to if I have any questions before making an application?

Call us at 0800 227 000 or email us at and one of the team will contact you.


* What should I do if my contact details change?

It is important that your contact information is kept up to date so if your contact details change please let us know. Give us a call on 0800 227 000 or email us at




Please don’t hesitate to contact us if you have a question that is not listed above, we are happy to help. Click here.