The Auckland Loan Company's Frequently Asked Questions
FREQUENTLY ASKED QUESTIONS
How do I Apply for Finance?
How old do you have to be to apply for a loan
What information do I need to supply to apply for finance?
How long will it take to process my online application?
As soon as we receive the following:
1. Your application form
2. Privacy Waiver
3. Bank Statement
4. Photo ID
We can begin working on your application, the application itself takes about 10 -20 minutes to process and then refer to a finance company for approval. You will be kept updated during this, so keep your eyes peeled on our emails. Once this is sent then we play the waiting game, it normally takes between 20 minutes and an hour or so to get an approval back.
However, this time frame is subject to your transparency with the info you provided. We find that it normally takes longer if their discrepancies in the information you have provided and we must clear it up with you, things such as undisclosed defaults in credit check, undisclosed expenses in bank statements, or just some information provided is not true or correct once we do the checks.
Also this changes from time to time depending on how busy we are with other applications. Sometimes we get inundated with applications, this can slow processing times.
What if I need the finance to be completed faster?
If your Application is ugent, please advise this is the comment section of the application, also make sure that you provide all information and we will do our best to get this done and signed up as quickly as possible.
I have Bad Credit, can I still get a loan?
Yes - however, this is a tentative yes.
In principle, yes we can try to help. Having bad credit isnt usually the problem, it's the other issues that have caused the bad credit that can hinder the approval.
Basically, this depends entirely on what the bad credit is and how you have gone about trying to fix it.
As you know, there’s always a story about how you got the bad credit, and because of that we may be able to help. Its not the fact one got into bad debt , its how they have dealt with it that defines them.
We can work together to sort this out, click here for more info.
What types of Loans do you do?
The Auckland Loan Company (ALC) Powers its Loan Brands -
Motor Loans - Car Loans, Bike Loans, Motorhome Loans, Boat Loans - Basically anything with a motor and a registration.
Go Loans - Personal Loans, Debt Consolidation Loans and Home Renovation & Repair Loans. These are generally any kind of Loan over 5k that’s secured by something.
Cashbox - Small Cash Loans, anything from 0 - 5k Loans. - We refer these loans immediately based on your credit score with ALC.
The Car Network - Car Sales, if you need a car check us out
Do you do Unsecured Loans? Or do they have to be secured.
We can do unsecured Loan for our Platinum Applicants - This type of Profile is,
Do you do Pre Approved Car Loans? before I go to the yard
Yes we do Pre-Approved loans through MotorLoans,
Do you have any Dealerships that you deal with that we can visit?
Yes, we have a big list of dealerships that we use, some we do lots of business through, so are more than likely to make a deal with us, so if you are looking for a particular vehicle, let us know and we will get onto sourcing the car for you.
Why are your loan calulator payments more than what Car Dealerships offer?
As Responsible Lenders we incorporate and combine, all possible fees, costs, insurances and industry average interest rates that are offered and added them into the repayment amounts, so that you see the most correct amount of repayments that you would actually be making.
Most car dealerships do not do this, their calculations are always over the maximum term (6 years) and lowest interest rate, with no fees, costs or insurances. And these extra costs and insurances, increased interest rate will be added in as you are approved, so your payments and interest rate will most probably always be more than what is advertised at the dealerships.
This is a common advertising tactic amongst car dealerships.
I have a Learners License, Can I still get a Loan?
What are your rules around Work Visas?
Do you do Unsecured Loans?
Yes, but we can only process a maximum of 5k - and you must meet strict criteria
You must be either:
if you are not a home owner, you must have good stability (longer than 3 years at home & work place), and a credit score of over 600.
What counts as security for a Personal Loan?
If you require security for a Loan, ideally, we will be able to secure a loan for 80% of the cars market value, less any finance owing on it.
The Security Must be a registered and warranted vehicle, 2006 or greater. this can be relaxed if you have a good financial profile.
What is Market Value?
Market value is taking 5 cars over three independent websites, closely matching your make model and km’s, and taking an average sale price over those 15 cars. Often this is lower than the customer expects but is the closest way we can match valuations and market value.
Occasionally some vehicles will have negative equity, as you may owe more than the car market value. This is often the case of you have a car on finance. Cars depreciate more than your repayment balance will lessen.
I think I can Afford a Loan But you said I cant afford it , Why?
As Responsible financial service providers, we have to abide by "The Responsible Lending Code" this is a government requirement and a mandatory practice.
Because people’s finances are a very personal thing and outgoings vary on a huge spectrum, it is impossible to take into consideration everyone’s idea of 'affordability", so averages must be taken into consideration as this is the only constant. These averages are taken from the standard costs of living, calculated by census data - of course not everyone lives by these, but an average is exactly that.
Therefore, every applicant’s income is put up against theaverage costs of living, and then processed accordingly. This determines how someone can live within their means, pay for the loan payment, and pay for an emergency, - if the number comes back negative (less than zero) then the loan is deemed unaffordable.
This is the only way we can provide responsible financial services that can be proved by a constant metric.
I am on a Benefit, can I still get a loan?
2 or 3 years ago we would have said "Yeah sure no problem" , as long as you can afford it......
However nowadays with the "Responsible Lending Code" we must abide by a series of formulas in order to ensure affordability.
Unfortunately for many beneficiaries, Work and Income NZ only really pays for you to live, not to purchase things on finance, therefore we cannot always prove you can afford a loan and in most cases we are proven correct when we see the bank statement.
Although the affordability is unfortunate, its not impossible to get a car loan -
In order for you to get a loan as a beneficiary you must:
1. Have clean credit (no defaults with a credit score preferably over 350/1000)
2. Show income that passes The Responsible lending Codes calculations
3. Show good money management in your account (Budget with no dishonours or unarranged overdrafts).
If you are working part time, this could be a bonus aswell.
Again we try and get Beneficiaries across the line, however in 90% of the cases we cannot get past affordability.
What are your Charges?
As a finance broker we charge different amounts depending on the size, type and complication of a loan.
What are your Interest rates
Our Interest Rates range from 9.95% - 28.95% for anything over 6k
I am Currently Bankrupt / in NAP. Can I still get a Loan
For Car Loans, it is possible, but we will need a bare minimum of 30% deposit and you mjust be employed, pass the affordability test and stabilit test. you must be able to obtain a wage deduction from your work.
I am a Discharged Bankrupt / NAP. Can I still get a Loan?
The criteria for Discharged Bankrupt / NAP is:
1. you must have been discharged a minimum of 6 months
2. you must have 30% deposit on a car loan or at least security worth 200% more than the amount you are anting to borrow when applying for a personal loan.
3. you mustn’t have had any defaults post your bankruptcy / nap discharge.
4. you must be working / full time employment and pass all other standard criteria tests.
If you meet the above criteria then we should be able to help