AA car finance is the finance arm of the AA New Zealand, and offers a range of loan options to help Kiwis get the car they want. They keep their rates and fees simple, so it’s easy to understand what you’re paying for.
In the New York lawsuit, regulators accuse CAC of taking advantage of borrowers by inflating prices and forcing dealers to mark up the cost of vehicles. The company’s profits rely on collecting a certain amount of money from monthly payments and selling repossessed cars when people can’t pay, authorities argue. In court filings, CAC denies the allegations and says that it’s not a car dealer and doesn’t directly sell cars to consumers.
CAC’s business model is controversial because the company focuses on low-income people with poor credit histories, who are more likely to default on their loans and often fail to understand the total costs of the vehicle they’re buying. The company also charges higher interest rates than a traditional lender, and doesn’t take a borrower’s income or expenses into account when assessing eligibility for a loan.
If you’re an existing AA member, you can receive a discount on the $290 loan establishment fee. However, AA doesn’t offer online chat or email support, so it can be difficult to contact them if you have questions or need to change your repayments. Customers are able to settle their loans early, but it can incur up to 58 days’ interest. AA car finance