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You could easily be mistaken in thinking you’re hearing or reading a foreign language when it comes to the world of finance. Just looking at a loan agreement with its pages of jargon can send your head into a spin.

However, don’t worry, we’re here to help. We’ve compiled a list of words and terms you’re likely to encounter when you take out a loan, and explain exactly what it is we’re talking about – It’s time to unjumble the jargon!

Agreement – A contract between a borrower (you) and a lender (I.e. Oxford Finance). It outlines the terms of your loan and repayments.

Arrears – The overdue amount or amount accrued after missing one or more scheduled loan repayments.

Co-borrower – Someone who has jointly taken out a loan with another person. They could be a partner, family member or friend. Co-borrowers share responsibility and liability in repaying the loan.

Creditor – The person or company (I.e. Oxford Finance) who lends money to the debtor – the person or company borrowing money.

Deposit – Is an upfront part payment towards the goods you wish to purchase, such as a car. The greater your deposit, the smaller the amount you will need to borrow. To get an indication of possible loan repayments check out our online Loan Calculator.

Direct debit – Once authorised by you, a direct debit enables us (Oxford Finance) to take regular loan payments from your nominated bank account.

Dishonour – Is when there is not enough money in your account to make a loan payment.

Guarantor – Is a person(s) who agrees to be responsible for the debt of the borrower by offering their own assets such as their home as collateral. In general, business loans will require a guarantor.

GAP insurance – If your car is written off and the loan amount you owe is greater than what your insurer pays out, GAP insurance covers the shortfall.

Initial unpaid balance – Is the total amount you owe at the start date of your loan.

Interest – Is the amount a lender (I.e. Oxford Finance) charges the borrower (you) for taking out a loan. The interest rate you are charged is based on the type of security provided, value of security in relation to the loan amount, your previous credit history, and your credit and personal profile.

Loan repayment insurance – Depending on the level of cover you choose, your outstanding loan balance will be paid out if you unexpectedly die, or temporarily cover your loan repayments if you are unable to work due to illness or injury.

Mechanical breakdown insurance – Covers the cost to repair the mechanical or electrical parts of your vehicle if it unexpectedly breaks down.

Motor vehicle insurance – If you borrow money for a vehicle, Oxford requires your vehicle to be insured against theft and accident damage.

Payment waiver – Is an optional product you can purchase at the time you take out a loan. It is included in your repayments and will clear the balance of your loan depending on the level of covered events you choose. Find out more about payment waiver.

Security – Means that if something were to happen, and you were unable to repay your loan, the lender would be able to sell your security (usually your car if you have taken out vehicle finance), to recoup the money owing on your loan.

Settlement – Is the amount required to repay your loan in full.

Trade in – When you purchase a vehicle from a dealer, you may be able to sell your old vehicle to the dealer as part payment towards the cost of your new vehicle.

Vehicle offer and sale agreement – Is the documentation from a dealer outlining the details of your pending vehicle purchase. This will include agreed price, finance details, vehicle details, any add-ons or accessories, trade-in information and values if applicable. It is important that you fully understand all the details and terms and conditions of the offer and agreement. If something doesn’t make sense, ask the dealer to explain it to you.

Please get in touch with our friendly team at Oxford if you have any questions around applying for finance.

We look forward to hearing from you.

We’re all noticing that the cost of goods and services are increasing quickly in New Zealand… groceries, power and insurance to name a few, it can start to feel like the money in your bank account is going out faster than it’s going in. That’s why it’s a good idea to start thinking about your spending habits, especially at the supermarket.

Don’t go to the supermarket hungry
It’s sounds obvious, but if you’re in a rush and want to squeeze in a quick shop before dinner, you’ll end up buying more than you need. Eat a piece of fruit and have a drink of water in the car on your way to the supermarket. That way you’ll be less tempted to buy that packet of chips or chocolate bar. Plus, your waistline and your pocket will thank you for it too. 

Make a list…and stick to it
You’ll save money by buying only the items you need and not what you don’t. Also, if you can, shop alone. Kids can be extremely sneaky at putting things in your trolley when you’re not looking or, repeatedly asking for something until you give in. 

Buy generic or home brand products
 The difference in cost between premium brands and home brands can be significant and add up quickly. If the product is like for like you’re not missing out on anything. And just remember, you’re not going to be eating the packaging!

Shop in-season
It goes without saying that fruit and vegetables taste better when they are in season and are generally more affordable too. Plan your meals accordingly and reap in the savings.

Cut out the convenience food
Pre-packaged meals such as pizzas or bagged salads are quick and easy, but expensive too. Add your choice of topping to par-baked pizza bases and have some left over for lunch the next day.

Shop online
Today almost all supermarkets have a convenient online shopping option. Once you’ve selected all your groceries you can easily review your items and discard any you don’t really need. It’s a good way to ensure you’re within you budget before you arrive at the check out.

You have probably heard a lot of talk lately around recent changes to the Credit Contracts and Consumer Finance Act (CCCFA), and the extra hurdles that have been put in place when applying for credit. Does this mean that it’s now harder to borrow? Well, maybe not….

To put it simply, the CCCFA is a consumer law that protects you when you want to borrow money. The Act sets out rules that we as a finance company must follow when lending money. The main aim of the Act is to ensure that each loan is suitable and affordable for the borrower.

Here we have listed some of the things our lenders look at when assessing whether a loan is suitable and affordable, and what you can do to ensure your finances are in the best possible shape before making an application for finance.

Things key things we look at:

• Your bank statements

We review your bank statements to determine whether or not you have the ability to repay your loan before providing finance. We check:

• Your incomings (E.g. Wages, salary) and your fixed outgoings (e.g. rent/mortgage, insurance, power, food and groceries etc).
• For any payment defaults
• What other debt you may have. i.e. credit cards, Buy now, pay later loans
• Your credit history
• Your employment status and history
• Your residential status

Things you can do before applying for credit:

• Keep a record of your expenses before applying for a loan, then create a budget that you can follow;
• Set up direct debits for your key bills. It can sometimes be hard to remember which bill is due and when, so direct debits are a great way of ensuring you are paying your bills on time. Any missed bills can impact your credit score;
• Aim to control your discretionary (non-essential) spending. Whilst we don’t focus on which fast food outlet you frequent, we are required to take these expenses into account when assessing your loan;
• Ensure any defaults are paid off before applying for credit;
• Aim to pay your credit card balance off in full each month;
• Be cautious about accepting buy now, pay later payment options. What initially looks like a small repayment each week does add up quickly, and will impact on how much you can borrow.

It can seem like a lot to take in, however it is important that you plan and budget accordingly so that your finances are in order when you’re ready to take out a loan. Remember, the CCCFA helps ensure that all parties are comfortable that you are not extending yourself beyond your means.

Please get in touch with our friendly team at Oxford if you have any questions around applying for finance.

We look forward to hearing from you.

There are a number of ways you can get a car loan, either from a car dealer, finance broker, or you can go to a lender directly. However, if it’s the first time you’re applying for a car loan it can feel a little overwhelming. So here we’ve compiled a list of steps to help you along the way.

Decide what type of car you want to buy
Take the time to consider your lifestyle and what you want to get out of your new car – Are you looking for a compact city run-around? A car with enough space to fit the kids and the dog? Or, perhaps you’re thinking an EV might be the best option when the cost of filling up the tank is getting more and more expensive every week.

Decide how much to you want to spend and how much can you afford to borrow?
It’s important to work out early on how much you are comfortable spending and borrowing. Take a look at your finances and work out a budget. Look at your income and expenses. Look at what you are currently paying on a regular basis, such as your rent, power or internet. How much is left over after all the bills are paid? Car insurance is another important factor to consider and will need to be included in your budget calculations. To give you an idea of what your loan repayments might be, check out our online Loan Calculator.

Apply for a loan approval with us
Once you’ve found a car, or decided how much you want to spend, you can apply for a car loan online. There are certain eligibility requirements you’ll need to meet before you begin:

• Be 18 years or older
• Hold a valid New Zealand drivers licence
• Earn over $30,000 per year before tax

Conditional approval
After completing our online loan application, if successful we’ll offer you a conditional approval. From here we collect further information from you, such as verifying your identity and looking at your recent bank statements. Don’t worry, this can be done quickly and easily using secure online processes. Once we have all the details we need and have agreed on a loan amount and repayment term, we’ll process and payout your car loan. This may take a day or two to complete.

It’s time to get behind the wheel
Now that you’ve found the perfect car and are heading off down the road, remember that we’re still here to support you. You’ll find lots of helpful and frequently asked questions on our website, as well as online access to your account so you can track your repayments or update your details whenever you need to.