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AA Money Review

We review AA Money, the AA's lending arm, uniquely offering secured personal and vehicle loans online and fast application process times. We cover the loans available, fees, pros and cons and everything you need to know to help decide if AA Money is right for you.
Updated 15 December 2024
Summary of AA Money
  • AA Money, a division of the AA, is lender that focuses on secured lending, with interest rates between 9.95% to 16.95% p.a. (car loans) and 12.45% to 19.45% p.a. (personal loans).
  • AA Money is unique by having an association to the AA, which has helped support millions of New Zealanders since its launch in 1903. No other lender arguably has such a brand association or brand recognition among everyday New Zealanders.
  • Loans are for amounts between $3,000 and $75,000 and repayment terms are between twelve months and five years.
  • AA Money positions itself as a fast-application lender and claims it can give same-day decisions, with a claim it can respond within an hour during business hours (e.g. 9am to 5pm, Monday to Friday).
  • Fees include a $290 loan establishment fee, which is in line with other lenders and finance brokers such as Harmoney, Simplify, MTF Finance, Kiwi Car Loans, banks and finance companies. If you're an AA member, loan fee discounts apply (currently it's a $50 discount on the establishment fee).
  • Early repayments incur fees - this can get expensive, as outlined on AA Money's website.

In this guide, we look at what AA Money offers for borrowers. We cover:
Advertising Disclosure: MoneyHub may receive a payment if you make a purchase on our website. Such commercial arrangements have no influence on our independent reviews of financial products. Please refer to our advertising policy for more details.

MoneyHub Founder Christopher Walsh shares his comments about AA Money

"AA Money is arguably trusted because of its association with AA, but it's more than a brand - it provides low fees, affordable interest rates and is dedicated to secured lending. Unlike banks which are comparatively a slow process, AA Money joins the likes of Harmoney in offering an online loan process that gives fast answers. I like this because it's a low-touch approach whereby you can easily compare the interest rate and fees with other borrowers and make an informed decision about what's right for you".

"Secured loans have historically offered better interest rates, and AA Money doesn't do anything else but secured loans, which limits their risk but also attracts a customer base that's likely be be offered comparatively lower interest rates".

"Before diving into any loan, exploring all your options is always good. AA Money's transparent rate range can be enticing. However, always remember to factor in the full cost of borrowing, including establishment fees and monthly charges, to ensure you make the best financial decision for your circumstances. What's important is the total cost of the loan - if you're repaying $15,000 for a $12,000 loan, that, for example, is a better deal than paying $17,000 - please compare the market and don't rush into anything".
Christopher Walsh
MoneyHub Founder

Understanding AA Money's Minimum Borrowing Requirements

AA Money borrowers are, historically, individuals looking for a car loan, or a personal loan for any number of reasons (debt consolidation, home improvement, weddings and emergencies). AA Money's application process is strict - only individuals who meet the following criteria can borrow:
  • Be at least 18 years old
  • Have a regular income and earn over $30,000 p.a.
  • Be able to afford the loan you are applying for
  • Provide identity confirmation with either a valid New Zealand Driver’s License or a valid New Zealand Passport, as well as any foreign passport, or a NZ Firearms license.
  • Proof of address

AA Money, like any lender, is tightly regulated by legislation to protect borrowers and is clear in stating that all decisions are subject to responsible lending inquiries and checks.

Applying for a Loan with AA Money

Requesting a quote for a car loan or personal loan follows a standard process, although the interest rate will differ depending on the loan's purpose:
  1. You can make an application whereby you'll need to select how much you want to borrow. You'll need to also choose whether it's for a vehicle or a personal loan.
  2. If it's a vehicle loan, you'll choose the vehicle type (car, motorcycle, boat, jetski, caravan). If it's a personal loan, you'll select why you're borrowing - e.g. debt consolidation, refinance, holiday, renovation, and a few other options. You'll also need to provide security for a personal loan.
  3. Once you accept the basic terms, you'll meed to provide your name, date of birth, gender etc, as well as provide your NZ Driver's licence or passport number. You'll also need to enter in your address.
  4. You'll then need to enter your home details (mortgage vs renting/boarding, and how much you pay each week), how many children you have, marital status and select your income type (full-time, part-time, self-employed etc) and any employer's details.
  5. Once complete, AA Money asks you to submit your application and AA Money will complete a credit check.
  6. Once everything is checked, you'll either be offered a loan amount with an interest rate, or you'll be declined.
  7. If you accept a loan, you'll be charged a fee which is added to the loan total.
  8. You can log in and view their account transactions and current balance at any time.

How long does it take for AA Money to approve a loan application? Is it a quick turnaround time compared to other lenders?

AA Money promotes that "we aim to get back to you within one business hour" of an application being submitted, although this will depend on the complexity of the application.

Christopher Walsh
MoneyHub Founder
​MoneyHub's Top Car Finance Options - Avoid high interest rates and fees with our trusted lenders.
  • We focus on highlighting the top car finance options to help you avoid costly high interest rates and unnecessary fees that add up too quickly. Our extensive research has consistently highlighted two trusted lenders who offer fair, competitive interest rates for most borrowers.
  • Simplify – A dedicated car loan specialist, Simplify has built a strong reputation for offering some of the most competitive rates and terms in the market. For 2024, we've named them our Favourite Car Loan Lender for their customer-focused approach and proven ability to get New Zealanders into cars with great finance deals. 
  • Harmoney – If you prefer a low-fee personal lender with an easy, fully online process, Harmoney is a great option for secured car loans. Their streamlined application can help you secure a loan quickly and efficiently.
  • Why Compare? Comparing car finance options can save you thousands. Even a 1% lower interest rate can significantly reduce your repayments. While dealership financing might seem convenient, it often comes with higher costs to boost their profits. By exploring different lenders and brokers (such as Simplify and Harmoney), you can secure a better deal, avoid unnecessary markups, and ensure you're not overpaying for your car.
  • Important: The interest rate you lock in now will impact your repayments for years to come, so choose wisely and compare before committing.
  • Advertising Disclosure: We may receive a commission if you proceed with a loan through our partners. However, this does not influence our recommendations, and all lenders are thoroughly vetted for fairness. Rates vary based on individual credit profiles.

Pros and Cons of AA Money

Pros:
  • Technology focused: AA Money is fast and simple, and its online reviews are arguably among the best in New Zealand for anyone looking for a secured loan, signalling a service that's trusted amongst borrowers.
  • Wise range in loan amounts: Borrowers can choose between $3,000 and $75,000, and choose to repay the amount weekly, fortnightly or monthly over 12 months to five years. AA Money does say that applicants can call their 0800 number if they wish to borrow above $75,000.
  • Transparency: AA Money is transparent about interest rates being based on a borrower's affordability.
  • 100% Secured Loans: AA Money only offers secured loans, so interest rates may be lower than other lenders who only offer unsecured lending given they're seen as lower risk.
  • Discount for AA Members: AA Members won't receive a discount on the interest rate, but the application fees (paid if you sign a loan contract) are discounted - AA Members currently receive a $50 establishment fee discount.
  • Early Repayment Option: AA Money offers early loan repayments with fees, as outlined on their website.

Cons:
  • Missed Payment Penalties: Penalties can be steep if payments are missed or defaulted on.

But, be aware:
  1. Fees can be high if you miss payments or default. This is standard with any personal lender but it's essential to be aware of to manage your budget and personal finances.
  2. Lack of Customer Feedback: Unlike other lenders who have reviews on third-party website like Feefo, Trustpilot or Google Reviews, AA Money hasn't yet focused on generating these.
  3. Always compare the offer you receive with other options. Our car loans, personal loans and debt consolidation loans comparisons list alternative lenders who are known for providing loans to borrowers with strong credit histories.

Have the best chance of loan success

The speed and success of an approved loan will depend on how well you complete your loan application. For the best success, be sure to:
  1. Be honest when answering all questions.
  2. Complete every section as best you can - given personal lending is often the second most expensive debt people take on (after their mortgage), many New Zealanders want to be able to explain their financial situation or have questions. If you need help, contact AA Money's team will support you as it's critical your answers are clear.

AA Money's Fees – How Fees Are Charged To Borrowers

AA Money and two fee types - loan fees and missed payment fees. Most borrowers will only detail with loan fees, but it's best to understand everything before signing any loan agreement. Our summary of fees below is specific to secured loans only.

Loan Fees (discounts apply to AA Members, currently a $50 establishment fee discount):
  1. Loan Establishment Fee: This is a one-time fee added to your loan when it's set up. It can go up to $290.
  2. Agent Fee: If you're referred to AA Money by an agent, you might be charged a one-time fee of $150, which is added to your loan. However, the dealer or agent cut of the establishment fee is taken from the $290. This means a customer will only ever pay $290 for the establishment fee, and dealers or agent receive a $140 commission from this fee.

Missed Payment Penalties & Fees:
  1. Additional Interest for Defaults: If there's a default in payment, AA Money will levy an added interest, calculated daily. This will be at your standard yearly interest rate, plus an extra 5%.
  2. Dishonoured Payment Fee by AA Money: Should any payment you make to AA Money get declined by your bank, and as a result, AA Money's bank imposes a fee on them, they will pass that exact fee onto you. Currently, this fee stands at $0.
  3. Repossession-related Charges by AA Money:
  • Issuance of Repossession Warrant: If circumstances lead AA Money to issue a repossession warrant for the vehicle, a fee of $40 will be applied.
  • Recovery Costs (Enforcement-related): If third-party services are required to enforce the terms of AA Money's agreement, you will be charged the actual costs they incur. This could encompass fees from repossession agents, legal entities, or repair services. AA Money is transparent about these charges and will provide invoice copies upon your request.
  • Recovery Costs (Vehicle Sale): If AA Money sells the vehicle, an additional fee will be levied, which will be the actual cost associated with the sale. AA Money will always aim to choose a selling method that maximizes the vehicle's selling price."

If you have any questions regarding these fees, it's recommended to contact AA Money directly.

AA Money - Customer Experience and Feedback

Unlike other lenders who have reviews on third-party website like Feefo, Trustpilot or Google Reviews, AA Money hasn't yet focused on generating these.

AA Money - Our Conclusion

  • In this in-depth review of AA Money, we've observed the multifaceted services and offerings that set this lender apart in the New Zealand financial landscape. The backing by the AA, a trusted and historic entity, inherently brings trustworthiness and recognition to AA Money that few other lenders can claim.
  • The focus on secured lending, transparent fees, and a tech-driven, user-friendly application process make it an attractive option for those searching for vehicle and personal loans.
  • Several standout features include the clear association with the AA brand, competitive interest rates, loan amounts that cater to various financial needs, and a streamlined online application process designed for efficiency and user ease.
  • The transparency and commitment to fully secured loans mean borrowers can often benefit from better rates, reducing overall borrowing costs. Additionally, AA members are rewarded with application fee discounts (currently discounted by $50), which is a testament to the company's loyalty to its long-standing customer base.
  • However, prospective borrowers should be aware of potential penalties tied to missed payments and ensure they fully understand the implications of any loan. Comparing AA Money's offer with others in the market and being thoroughly informed can assist in making the best financial decisions.
  • Understanding the total cost of the loan and comparing market offerings is crucial to ensuring the best financial decision, whether it be a loan for car finance, debt consolidation or a personal loan for anything else.
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