How much deposit do I need?

Although we are flexible, we believe that it is important that you have a reasonable investment in your new car. Generally this means having a deposit of at least 20%.

What is the interest rate?

The interest rate is the amount of interest you pay for one day divided by the balance of your loan on that day expressed as an annual percentage.

What does that mean?

Interest charges are calculated and charged at the end of each month by multiplying the daily unpaid balances for the preceding month by the daily interest rate. The daily interest rate is calculated by dividing the annual interest rate by 365.

What annual rate does Falcon Advances Ltd charge?

The rate varies depending on a number of factors, for example the size of the loan, the age of the car, the term of the loan etc. but generally we charge between 13% and 19.5% interest per annum.

Click on the Finance Calculator link to work out the interest and payments on your loan

How much interest do I actually pay ?

The contract will clearly set out the maximum interest charged if you pay each monthly instalment on due date. If you pay early or more than the regular monthly amount you will pay less total interest. If you pay late or less than the regular monthly amount you will end up paying more interest in total. The total interest cost equates to between $70 and $95 per $1000 borrowed for each year of the loan, if you pay the correct instalment amount on time.

Click on the Finance Calculator link to work out the interest and payments on your loan

What about booking fees and extra charges?

We charge a standard booking fee of $450 on each loan, regardless of the size of the loan. There are no other hidden extras.

What about Insurance?

All vehicles that are on finance with us must be fully insured. In some circumstances the cost of the first years premium can be included in the loan.

What about Warranties?

Depending on the age of the car, purchasing a mechanical warranty can be a sensible precaution and in some circumstances the cost of this can be included in the loan.

What about Payment Protection Insurance?

Depending on your personal circumstances, purchasing a Payment Protection Insurance Policy can be a sensible precaution and in some circumstances the cost of this can be included in the loan. Unlike many Finance Companies, it is unusual for us insist that you have this additional cover as it can be quite expensive.

What if I want to settle the loan early?

You only pay interest for the days you borrow the money. Simply call us and we will tell you what your balance is including interest up to the day you settle the loan.

Do I pay a penalty for settling early?

The Credit Contracts & Consumer Finance Act 2003 provides that the finance company may charge a reasonable fee to compensate it for the loss it incurs when a loan is settled early. The maximum amount of any fee or charge that you will have to pay is $150.

What if I damage or write off the vehicle, or it gets stolen?

Inform both us and the insurance company immediately. Provided you have a valid claim and your insurance cover is current, there will be no problem.

What if the insurance doesn't pay or the problem with the car is not covered by insurance?

Contact us immediately and provided you have been paying your account on time, we may be able to help you by paying for the repairs or damage for you and extending the term of your loan to enable you to repay us.

What if I can't pay or have trouble paying my instalments?

Our staff is very experienced in helping with this problem. If you think that you might have difficulty with your payments, usually due to a change in your financial circumstances, contact us as soon as possible and we can often help. If you leave it until your account is behind on payments, it is much harder to help.

What if I experience a change of circumstances or Unforeseen Hardship

If you are unable to keep up your payments for any reasonable cause write to Falcon Advances Ltd immediately explaining your reasons and asking for an extension of the term or postponement of the payment dates or both.

What about repossessions?

Nobody likes repossessions, but sometimes this becomes unavoidable, usually when the account is too far behind in payments. If this happens, contact us immediately and often we can work out a revised payment schedule which will help you get your car back.

I have heard a lot of bad things about finance companies, why should I trust Falcon Advances Ltd?

We are a family firm that has been lending money on cars for over 60 years. We do not charge penalty interest or add exorbitant extra fees to your loan. Our contracts are clear and in large print and we are happy to explain them to you before you enter into an agreement with us rather than pointing out the fine print after!

This is why so much of our business is repeat customers.

If I have a dispute with Falcon Advances Ltd , is there anyone I can contact ?

Falcon Advances Ltd is a member of an independent dispute resolution scheme which is a free service you can contact to help resolve any conflicts you may have with us. Name : ISO Scheme Contact :Freephone 0800 888 202 Website: www.ombudsmen.org.nz email; www.ombudsmen.org.nz

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