Finance Now vs UDC for a car loan

Two lenders can both say they finance cars and still work in quite different ways. This page picks out the differences between Finance Now and UDC that show up on their own websites, and leaves out anything that only appears on review or affiliate sites. We do not rank them, and we have no view on who would lend to you.

Car Finance Guide is a guide, not a lender or a broker. Everything below about each company was read on its own pages on 10 November 2026 and may change. Where a page did not state something, we say so rather than guess.

Start with the size of the loan

The sharpest difference is how much each lender will write. Finance Now’s car loan page shows borrowing of up to $60,000, with its calculator running from $1,000. UDC’s FAQ says its minimum loan for motor vehicles is $5,000. The same UDC page says it can consider financing up to 100% of a purchase, subject to its lending criteria and responsible lending inquiries.

A search snippet on another site gave a different UDC minimum. UDC’s own pages say $5,000, so that is the figure used here.

If you are buying a cheap run-around with a small top-up, the floor matters. If you are buying something larger, the ceiling and the security rules matter more, and those come next.

What each page says, side by side

All of this was checked on 10 November 2026. UDC’s calculator describes an establishment fee, a maintenance fee that depends on whether you pay weekly, fortnightly or monthly, and a PPSR fee, but we could not read the dollar amounts. Check UDC’s fees, rates and documentation page for current figures.

How Finance Now describes its car loan

Finance Now frames the loan as a fixed-rate online product. The eligibility list asks for age 18 or over, New Zealand citizenship or residence, income and employment details, and a passport or driver’s licence. Its calculator adds the $215 and $2.50 charges to the repayment it shows, says optional payment protection insurance is not included, and states that the result is not a quote.

Two things are left open. The pages do not say whether the loan is secured on the car, and they do not name a dispute resolution scheme. The loan calculator page also refers to personal loans in places, so check that the product you are offered is the one you expect.

How UDC describes its car loan

UDC presents vehicle finance as its main business, and says it has supported New Zealanders since 1937. Its FAQ explains that you supply a driver licence, the name of the insurer, and proof of income, which means recent payslips or bank statements for wage earners and an IRD personal tax summary for the self-employed. It sometimes asks for sixty days of bank statements to confirm expenses.

It describes a security interest in the vehicle, and says that if you fail to meet the agreement it may be entitled to repossess and sell the car, with you remaining liable for any shortfall. It works through accredited dealers, and a dealer may charge its own establishment fee for arranging the application. UDC’s pages do not name its dispute resolution scheme in the text we read.

The early repayment gap

This is where the two descriptions differ most in practice. Finance Now says paying off early carries no hidden fees or penalties. UDC explains that if you repay in full before the last payment, you pay a fixed fee to cover settling the loan, plus variable amounts: what it must pay to break its funding arrangements, and an amount to recover any loss.

Neither description is wrong or unusual. A fee for early settlement is allowed if it is reasonable, and the amount only becomes real when you ask for a payout figure. If you think you might sell the car in a couple of years, or clear the loan with a bonus, ask each lender for a payout figure at the one-year and two-year marks.

What the law gives you whichever you pick

Both are covered by the Credit Contracts and Consumer Finance Act, which the Financial Markets Authority has regulated since 1 July 2026. In practice that means:

• the lender must make reasonable inquiries so the loan suits you and is affordable
• you receive a disclosure statement before you are bound, showing the rate, fees and payments
• the lender must belong to an approved dispute resolution scheme, which you can check against the Financial Service Providers Register
• you can repay in full early, and any charge for doing so must be reasonable

That floor is the same for both, so it should not be the thing that decides between them.

Choosing with your own quotes

1. Ask each for a written offer on the same amount and term.
2. Put the two totals next to each other, fees included.
3. Check whether the loan size, the vehicle and the seller fit each lender’s rules.
4. Ask each for a payout figure part-way through the loan.
5. Weigh the answers in the order that matters to you. A cheaper total and a flexible exit are not always found in the same offer.

A worked example with invented numbers

These are made-up offers, not quotes from Finance Now or UDC. You want $15,000 over four years, paid monthly.

• Offer A: 12% a year, a $200 establishment fee and a $2.50 monthly fee. The repayment is about $395 plus $2.50 a month. You repay about $19,280 in all.
• Offer B: 11.5% a year, a $480 establishment fee and no monthly fee. The repayment is about $391 a month. You repay about $19,264 in all.

Offer B has the lower monthly figure and A has the lower upfront fee, yet the totals are within about $16. That is why the advertised rate is a poor guide on its own. If you then sold the car after two years, the early repayment terms in each contract could swing the result by more than that $16.

Our page on the comparison rate explains how a single figure can fold fees into the rate.

Step by step

1. Decide what you can afford each month, with a buffer.
2. Find out whether you need a loan of more or less than $5,000, since that narrows your options.
3. Apply to both, or ask for indicative offers, and keep the paperwork.
4. Check each lender on the Financial Service Providers Register.
5. Ask about early repayment, missed payments and what security is taken.
6. Get at least one more quote, from a bank or another finance company. Our bank vs finance company page covers that choice, and MTF vs Finance Now shows how another pair compares.
7. If you want help, the /check form passes your details to a broker partner, who compares lenders for you and calls you back. The car finance broker page explains what brokers do.

Checklist

• Written offers for the same amount and term.
• Annual rate, every fee and total repayable for each.
• Whether the car is held as security.
• A payout figure for early repayment.
• The dispute scheme named in the contract.
• A repayment you can carry if your income dips.

Red flags

• A rate shown only as “from” with no way to see your own.
• Fees that first appear in the contract.
• Insurance added to the loan without its own price.
• Any suggestion that a lender will say yes before it has looked at your details.
• Pressure to sign on the day.

If repayments become hard, tell the lender early and call MoneyTalks on 0800 345 123.

Sources

• Finance Now: car loans
• Finance Now: car loan calculator
• UDC: car loans
• UDC: car loan FAQs
• UDC: fees, rates and documentation
• Consumer Protection: what lenders must do
• Financial Markets Authority: changes to credit laws, July 2026