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Better Finance Review

Borrowing from Better Finance for a car loan? We review the platform's interest rates, fees, pros and cons and everything you need to know to help decide if Better Finance is right for you.
Updated 19 October 2023
Summary of Better Finance
  • Secured borrowing for cars, with interest rates between 9.45% and 28.95% p.a. Better Finance also offers loans for motorbikes, caravans, weddings and offers debt consolidation and personal loans, but this review focuses on car lending.
  • Better Finance is a car loan broker committed to finding customers the best deal on car financing. Its partners include Heartland Bank and Oxford Finance, among others. It exists to compare lenders and offer customers the best deal, specific to their needs.
  • Fees of $140 to $495 apply per approved loan. This is in line with other lenders such as Harmoney, AA Money, MTF Finance, banks and finance companies. However, if you come through an agent, an introducer fee of up to $995 applies. This would be applied if you come through a car dealer, financial adviser etc.
  • Unlike banks and traditional lenders, Better Finance promotes itself as an efficient, flexible and responsive lender with minimal paperwork requirements.
  • Loans can be approved within 3 hours and same-day payments are available.
  • Cars can be purchased with private sellers, dealers or second-hand car yards - there's no restriction.
  • Early repayment is permitted, with fees based on the underlying lender's T&C which will vary based on the lender you accept a loan from. We believe the fees are reasonable based on our discussions with Better Finance's team as part of our process in preparing this review.
  • Better Finance can also assist to manage the purchase of a vehicle, and has a team of experts who can help with advice on the car as well as which finance product is best for you.

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.
Our Guide to Better Finance
  • In this guide, we analyse Better Finance, an increasingly popular car finance arranger.
  • ​Borrowers are attracted by very competitive interest rates for applicants with good credit. 
  • Unlike traditional lenders who only offer their products, Better Finance showcases a range of lenders with a commitment to getting the best deal. Unlike going directly, it negotiates the lowest interest rate for you.
  • The application process is fast, with approval decisions often within the same day. 
  • All lending is secured, meaning if you fail to keep up with repayments, your car will be repossessed. You'll also be charged penalty fees. 

In this guide, we look at what Better Finance offers borrowers. We cover:

MoneyHub Founder Christopher Walsh shares his comments about Better Finance:

"Better Finance offers a distinct advantage over traditional car dealerships and direct lending options. Rather than constraining clients to a sole dealership, lender or bank, Better Finance, operating as a broker, guarantees that customers receive personalised loan offers from expert car lenders. They emphasise securing agreements prioritising the consumer's interests over that of dealerships or banks, bringing a much-needed impartial perspective to the industry."

"I noted the multiple communication channels they provide, a testament to their customer-first approach. Better Finance recognises the gravity of purchasing a vehicle. They make it a point to personally call those who inquire online, a gesture underscoring the importance of human connection. This blend of a personal touch in a digital world, supplemented by their adaptability to emails, chats, and Zoom, differentiates them from the typical bank."

"One notable feature is their tech-centric method to pinpoint the ideal offer for clients. Employing advanced systems to filter options tailored to an individual's profile is groundbreaking. This assures customers of receiving not just any deal, but one uniquely suited to their needs."

"Before diving into any loan, exploring all your options is always good. Better Finance'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 Better Finance's Borrowing Requirements

Better Finance’s borrowers are, historically, individuals looking to purchase a car. Better Finance's application process is strict - only individuals who meet the following criteria can borrow:
  • Be at least 18 years old
  • 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.
  • Provide bank statements for the last three months (these will be processed and assessed by a credit agency to see your borrowing ability)
  • You’ll need to list all income sources, your assets (e.g. house, investments, savings etc.), liabilities (e.g. credit cards, personal loans etc.) and your mortgage or rent expenses (separately from liabilities)

Getting a loan quote and securing a car
  1. You can get a free quote which helps you decide if the interest rate is reasonable, or if you should apply elsewhere. You will specify your preferred car and model, income, assets and debts.
  2. Loan application assessments are made fairly quickly, and you'll be contacted with a range of loan offers from different lenders.
  3. If you choose to go ahead with the loan, Better Finance's team handle the car purchase process, saving time and giving you trusted options. 
  4. If you accept a loan, you'll be charged fee, added to the loan total, depending on the amount borrowed. As the loan is secured, non-repayment after a certain period of time will mean your car will be repossessed. 

Pros and Cons of Better Finance

  1. Simple and Efficient Lending: Better Finance handles all the paperwork. It also offers digital loan document signatures to speed up the process. However, we encourage every borrower to read their loan documents in detail before signing. The purpose of this is to lower the risk to both the lender and borrower. Better Finance wants customers who buy solid and reliable cars, which also protects their loan should the customer later default.
  2. You can cashraise: Cashraising allows you to secure a loan using a vehicle you already own, leading to lower interest rates. It's similar to a mortgage but uses cars, motorbikes, boats or commercial vehicles as collateral.
  3. Decisions are made quickly, with a personalised interest rate which takes into account your credit history, income and assets.
  4. A range of lenders are compared, with Heartland Bank being one of several options. 

But, be aware:
  1. Fees can be high if you miss payments or default. This is standard with any car lender but it's essential to be aware of to manage your budget and personal finances.
  2. Always compare the offer you receive with other options. Harmoney is a dedicated alternative lender and has a reputation of providing low interest rates to borrowers with strong credit histories. Better Finance doesn't offer loans from Harmoney so it's worth a comparison.

Have the best chance of loan success

The speed and success of a loan being approved will depend on how well you complete your loan applicant. For the best success, be sure to:
  1. Be honest when answering all questions
  2. Complete every section - leaving blanks can raise issues
  3. Insert the most up to date numbers you have for income, debts and other related personal finance questions

Better Finance Fees – How Fees Are Charged To Borrowers

  • Each borrower pays an establishment fee when their loan is approved and drawn down to finance a car. This will range between $150 to $495
  • In some cases, where loans are arranged via a broker or car dealer, an additional fee may be applied.
  • When registering your security (i.e. car) against the loan, there is a PPSR  fee of $7.39
  • Other fees apply, but these tend to be for non-standard needs - all borrowers will receive this from Better Finance when they make an application.

A secured loan is where a borrower puts up an asset (like a vehicle) as collateral for a loan. Better Finance only offers secured loans, which means it offers lower risk and ultimately lower interest rates. There is a security registration fee, which is fixed at a one-off $7.39.

Be aware: The asset the loan is secured over can be repossessed if you miss too many loan repayments and default on your loan; additional fees will also apply. For this reason, we suggest making sure the car loan you apply for is affordable over the 1-5 years you plan to repay it. If it isn't, we suggest looking for a more affordable car. Having a car repossessed can affect your employment and other repayment obligations. 

Better Finance - Customer Experience and Feedback

Better Finance has lots of positive customer feedback on its Trustpilot reviews page, with over 2,000+ 5-star reviews from genuine customers. Having reviewed hundreds posted in 2023, we summarise the themes:
  1. Customer Service Excellence: Multiple reviews highlight the exemplary customer service provided by team members who are consistently praised for their professionalism, responsiveness, clarity, and helpfulness.
  2. Efficiency and Speed: Many customers were impressed by the speed of the company's lending services, often highlighting fast approvals, quick responses, and efficient processes.
  3. Clear Communication: Reviews often emphasise the clear communication provided by the company's team; customers felt informed and guided throughout their interactions.
  4. Online Process: The online application process is frequently mentioned as straightforward, easy, and efficient.
  5. Recommendations: Several reviews end with customers stating they would recommend Better Finance to others, a strong sign of customer satisfaction. Most ratings are 5 out of 5 stars, indicating high customer satisfaction.
  6. Streamlined Online Services: The company's online system seems to be a strong selling point, with many customers praising its efficiency and simplicity.

In conclusion, Better Finance has a strong reputation as a loan broker among thousands of clients, primarily due to its exceptional customer service, efficient online processes, and transparent communication.

Before applying, Better Finance invites potential borrowers to get a quote to start the process.

Better Finance - Our Conclusion

  • Better Finance is a flexible and responsive broker, prioritising customer needs over traditional lenders.
  • With a robust partnership network of lenders, they offer competitive rates and diverse options with a focus on car lending.
  • Their efficient application process and minimal paperwork allow for rapid approvals and same-day payments.
  • Fees are transparent, but potential borrowers should be wary of introducer fees when coming via agents.
  • Overwhelmingly positive Trustpilot reviews highlight their exceptional customer service, clear communication, and efficient online systems.
  • Repayments work like any other debt, and there is a credit team to talk to if any borrower falls behind or needs to make a hardship application. Loan variation fees apply in such cases, as is standard with any car loan.
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