Car finance NZ applications are major commitments. If you take out a loan, then you will probably be paying for it for several years. You need to put yourself in a position to make repayments easy. That means never taking on more than you can chew. Perform a thorough assessment of your current financial situation. See how much your assets are worth and how much liabilities you need to pay for. Examine your monthly cash flow. Do you have enough room to accommodate another auto loan? Could you do anything to improve the situation? The numbers should prove extremely helpful.
Payment to Income Ratio
How much do you take in every month? How much of that is disposable income? Most financial advisers tell their clients to keep car loan payments within 15%-20% of their monthly income. That should leave a good 80%-85% for servicing other debts and taking care of essential household expenses. Hopefully, there will also be some left for savings and investments. If you find that this payment range is inadequate in paying for your dream car, then you will have to increase your income with a higher salary, a second job, or a money-making asset.