If you’ve been searching for a used car for sale in Auckland, you’ve probably also been thinking about how to finance your purchase. You may be getting estimated repayment amounts from various dealers or banks and wondering how on earth they came up with that figure! Well, we are here to break this down for you, so you can see exactly which factors combine to give you the total loan amount from MotorCo and how your repayments are calculated. This should give you peace of mind that you aren’t paying any more than you need to!

Here are the factors we consider when coming up with your car loan.

Purchase Price

The purchase price of the car you are looking at is a significant factor that impacts how big your repayments will be. A higher purchase price will lead to higher repayments, as there is a larger amount of money to pay back. You can alleviate some of this debt upfront if you have a car to trade in or if you can make a deposit. 

Deposit or Trade Amount

Many people choose to trade in cars in Auckland because it decreases the cost of your new car! Your current car is valued by the dealer, and this value is then taken off the sale price of the car you want. This is a good way to avoid having to sell your car by yourself, which can be a tiring ordeal when you need to organise viewings and test drives.

If you don’t have a car to trade in, you can make a deposit that reduces the amount you will need to repay in the future. This can also reduce the interest rate, which we will explain further below! Even if you do have a car to trade in, you can still deposit extra funds, in the beginning, to bring your future repayments down further. 


Interest rates vary depending on a range of factors, but there are ways to make them as minimal as possible. Putting down a deposit on the car can bring down interest rates, as it gives the dealer confidence that you can make your repayments. Getting a secured loan is another way to minimise this cost. This means that if you don’t make your repayments, the dealer can sell the car to make back the money owing. This reduces interest rates as there is less risk involved.  


All car loans will have fees involved. At MotorCo, we are upfront about our fees and let you know about them straight away so there are no surprises later on! We have a $495 doc fee and an ongoing $2.50 account fee per month of repayments. These fees are included in your total loan sum and included in your repayments.


Do you want to pay off your loan asap or take it gradually? The length of time you factor in to pay off your loan will have a big impact on your repayment amounts. Another thing to consider is how often you want to make these instalments: weekly, fortnightly, or monthly. Having weekly or fortnightly repayments will break the cost down into smaller amounts to handle each week, however, some people might want to set aside a chunk for the whole month.

MotorCo’s Simple Finance Calculation

Now it’s time to put all these factors together! At MotorCo, we calculate our finance by taking the vehicle price, removing your deposit or trade price from this, adding in the set fees, and then dividing this all by the repayment timeline we have agreed on, including interest.

You don’t even have to do the math; we have a handy Finance Calculator you can use to get a finance estimate quickly! To find out the exact amount of finance available for you, contact our friendly finance team. They can also explain our pre-approved finance options, so you can come into the yard and shop like a cash buyer.    

Get your dream car, minus the hassle

At MotorCo, we make finance simple so you can get a car when you need it! Check out our website or visit our showrooms to find the used car for you and get super easy car finance in Auckland!