Vehicle finance vs home loan
Nowadays a lot of Kiwis are using a home loan to finance other things, a boat, an overseas holiday or a new vehicle. Putting the car 'on the house' isn't always the best solution.
Check the total cost
It's true that home loan interest rates are usually lower than personal loan rates, but in most cases the term of a home loan is longer than that of a personal loan, so you're paying interest on the cost of your vehicle for much longer. That means that the final cost of buying a vehicle could be significantly more.
Consider unexpected costs
If you're thinking of using a revolving credit facility to finance a new car or any other asset, you'll need to be extra disciplined to pay it off faster than a personal loan. And you'll also be using up funds that you may need to cover unexpected costs (such as home repairs or health emergencies).