Glossary
Secured loan
A loan backed by an asset: for car loans, the car itself. The lender can repossess the asset if the loan isn't repaid, and pricing is usually lower than unsecured lending in return.
By Leverage Finance · Updated 17 July 2026
Almost all NZ car finance is secured against the vehicle. The security lowers the lender's risk, which is why secured car loans are generally priced below unsecured personal loans for the same borrower.
The security is recorded as a security interest on the PPSR. You own and use the car as normal; the registration simply records the lender's claim until the loan is repaid. When you refinance, the old lender's registration is released and the new lender's takes its place, handled between the lenders at settlement.
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