Frequently Asked Questions

Car Finance

How long will it take for my loan application to be approved?
We’ll let you know in about an hour if you’re buying from a dealer, or within one working day (once we have all the information we need) if you’re organising a loan directly with MARAC.
Can I get a loan approval before I’ve found the car that I want?
Yes – we know that some people like to know how much they can borrow before they go shopping for a car. You apply for the loan as normal and we’ll send you a pre-approved finance voucher by email which you can use with a MARAC-authorised motor vehicle dealer. Or if you’re organising a private sale, MARAC will pay the private seller on your behalf.
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 either your MARAC-authorised motor vehicle dealer who will organise it for you, or contact us directly on 0800 520 009.
Do you offer insurance?
Yes. To find out about our insurance products click here.
What interest rates do you charge?
Our interest rates are competitive and vary depending on the amount borrowed, the loan term, and your credit history. To get an idea of our current rates, either click here to send us an email, or call our motor direct team on 0800 520 009.
How long are the loan terms?
Our terms are flexible, ranging from six months to five years.
Is there a minimum loan amount?
$5,000 is our minimum loan amount.
Is there a minimum age for applying for finance?
Yes, you need to be at least 18 years of age.
Can I apply for finance with a learner’s driver’s licence?
No, the minimum driver’s licence we require is a restricted licence.
What if I have no credit history?
You may not need to have any previous credit history to get a loan with us; however, we may ask you to provide a suitable guarantor for your loan.
What if I have bad credit?
Apply for a loan with us and we’ll assess your application. If we’re not able to offer you finance, we may be able to recommend another finance company to deal with.
What is the security for my loan?
The security will be the car you’ve purchased, although we may ask for additional security or a guarantor.
Can I pay my loan off before the end of the term?
Yes, although we will charge an early settlement fee.
Can I change my repayment amounts during the loan term?
Yes. Give our motor direct team a call on 0800 520 009, and we’ll see what we can do to change your loan to suit your circumstances (there may be a fee to restructure your loan).
What is a guarantor?
A guarantor is someone who agrees to pay your loan if you don’t keep up the payments.
Is there a loan establishment fee?
Yes. The loan establishment fee is $400. To view the full fee schedule, click here.

Leasing (Operating Lease)

Why would I lease a car rather than own a car?
Leasing allows you to drive a car without paying out a lump sum to purchase, which means you have cash for other purposes. The low deposit, the tax advantages, and no risk on resale also make leasing an attractive option.
Does leasing a vehicle give me a tax benefit?
Depending on your individual or business circumstances, leasing a vehicle can provide considerable tax advantages. In most cases the lease payment will be fully tax deductible. Your accountant will be the best person to give you advice on this.
Do I get a discount off the retail price of the car?
As MARAC is a major lease company we enjoy substantial fleet discounts on most vehicles. We pass on these discounts to our lease customers.
Can I lease a used vehicle?
Yes, but there may be limits on the term of the lease. Generally, only late model, low kilometre vehicles will be considered.
Is maintenance included in my lease payments?
With an operating lease, you can choose to include service costs and tyres, or you can have a non-maintained lease where you pay these costs yourself.
What's the difference between an operating lease and a finance lease?
At the start of a lease, the expected residual value is set (what the vehicle will be worth at the end of the lease). At the end of a lease the vehicle is usually sold, and this may be for more or less than the residual value. With a finance lease, if the sale price is less than the residual value, the lessee pays the difference to the lease company. If the sale price is more than the residual value, the lease company refunds the difference. Under an operating lease, the lease company takes any profit or loss on the sale and the lessee is not involved at all.
What is sale and lease back?
This is an option which allows you to inject cash into your business by selling your vehicle to a lease company and then leasing that vehicle back from the company.
If I have the money, why is making a regular monthly payment more attractive than paying cash to buy a car?
Because with leasing, all your costs, including depreciation, are known. You can also avoid having cash tied up in a depreciating asset and put it to productive use.
What type of car can I lease?
MARAC will purchase a vehicle to meet your specific requirements. Most vehicles that are available new in New Zealand will be considered for a lease option.
Can I purchase the lease vehicle at the end of the lease?
You may be able to negotiate to purchase the lease vehicle after the lease has expired. However, this cannot be arranged at the start of the lease.
How is the lease rate calculated?
The lease rate is based on the discounted purchase price of the vehicle, the anticipated resale value (residual value) of the vehicle and the term of the lease. The anticipated kilometre usage is agreed on to determine the residual value. Most leases are for a 36 month term but other terms are available.