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MTF products and fees

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Understanding your loan


Our finance options are suitable for just about any vehicle – car, light truck, motorbike, van, ute or farm bike – and they're easy to arrange.

We offer flexible terms so you can fit the frequency and amount of repayments to your budget.

You can include mechanical breakdown insurance, even if you buy privately, as well as payment waiver, that will cover your repayments if you can't through redundancy or illness.

Payment waiver

You can't predict when you might be affected by redundancy, injury, illness or even death, or how you'll manage if your vehicle is written off and you still owe money.

Payment waiver is an optional product you can select which provides protection if the unexpected happens. When payment waiver applies, the payments under your contract will be waived, within agreed limits, if an agreed event occurs and all other conditions are satisfied (including that MTF receives a corresponding payment under its policy with Vero Insurance New Zealand Limited).

The cost of payment waiver is included in your repayments for the full term of your loan. You choose the level of payment waiver you want, so that your repayments will be taken care of in the following situations:

Level of payment waiver

Events to which payment waiver applies

  • death
  • disablement
  • terminal illness
  • redundancy
  • insurance shortfall
  • death
  • disablement
  • terminal illness
  • redundancy
Silver Plus
  • death
  • disablement
  • terminal illness
  • bankruptcy
  • insurance shortfall
  • death
  • disablement
  • terminal illness
  • bankruptcy
Bronze Plus
  • death
  • insurance shortfall
  • death
  • insurance shortfall

What is insurance shortfall?

Insurance shortfall is the difference between the payout under your comprehensive vehicle insurance policy for a total loss of your vehicle and the amount you owe MTF on the same vehicle. When payment waiver applies, payment of that difference is waived, up to $10,000.

What happens if my circumstances change?

If you select payment waiver with your finance, we'll waive your loan repayments if something unexpected happens, such as redundancy or a serious illness that prevents you from working for an extended time.

You choose the level of payment waiver required at the time you take out the loan.

If you can't manage your repayments for another reason, talk to your local MTF contact as soon as possible. We may be able to help you find another solution.

Terms and conditions apply

To make a payment waiver claim, call 03 378 3425 or email paymentwaiver@mtf.co.nz

Mechanical breakdown insurance

veroBacked by Vero, our mechanical breakdown insurance may be included in your loan.

You are covered if your vehicle has an unexpected mechanical or electrical problem.

With mechanical breakdown insurance, we provide AA Roadservice, 24 hours a day, 365 days a year, plus accommodation and transport if you can't get to where you're going.

Mechanical and electrical repair

You'll be covered for the reasonable cost of repairing most mechanical and electrical problems.

24-hour AA Roadservice

Roadside help is only a phone call away for mechanical breakdown, a flat battery or tyre, or even if you're out of fuel or have locked yourself out.

Simply call 0800 581 581 and quote your policy and vehicle registration number.

Accommodation or vehicle rental

If it takes more than 24 hours to repair your vehicle, and you're more than 100km from home, you'll get up to five days accommodation or five days vehicle hire (maximum limit applies).

Vehicle recovery

Covers the cost of towing your vehicle to the nearest Vero approved repairer.

Generous claim limits

There is no limit to the number of claims you can make during your policy, although there is a limit to the amount that can be paid during any policy period or for any single breakdown.

Making a claim

Call 0800 809 700 to find your nearest Vero approved repairer.

You will need your Certificate of Insurance so the repairer can confirm that you're able to make a claim.

Terms and conditions apply

Fees and interest

At MTF, we disclose our fees in full, so there are no hidden surprises.

And we'll never change the fees or interest rate during the term of your car loan, so you always know where you stand.

Fees on new loans, effective from 1 August 2012.


Covers the cost of processing and approving your finance application.

No more than $440

Account maintenance

Covers the administrative cost of keeping your loan active.

No more than $10 per month

Security registration

Covers the search and registration of each item you offer as security.

Credit contract - no more than $13 per item

Lease - no more than $23 per item

Early settlement

If you repay your loan in full before the final scheduled payment date, you incur two different fees.

A fixed fee to cover the cost of settling the loan

A variable fee to cover the loss we incur if we have to break the funding associated with your loan. This amount is variable because it depends on the terms of your loan.

$55 plus a variable amount


Covers our costs if we have to issue a pre-possession notice.

No more than $140


Covers our costs if we have to issue a repossession notice.

No more than $160

Recovery costs

The actual cost of repossessing the item that was offered as security. This might include repossession agent fees, repair bills, legal fees and storage costs.


What we won't charge

Higher fees for business customers

We don't think it's fair to charge you more just because you're in business.

Statement fee

We don't think you should be charged extra because you ask for a paper statement and we do offer online statements.

Dishonoured payment fee

We know things sometimes get overlooked – so instead of charging you if you miss a repayment, we send you a friendly txt to let you know.

Refund fee

If you've accidentally paid us too much, we won't charge you when we give it back.

  • where GST applies the fees quoted include GST
  • if our fees change, you will only be charged the fee quoted in your loan agreement

What are my options?

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Finance options

Pay cash, borrow or lease?

There are three ways you can finance a vehicle. You can pay cash, get a personal loan or use a finance lease.

Pay cash

If you have enough to pay for a vehicle up front, you'll enjoy the advantage of only paying the purchase price, with no interest or fees, plus the car will be yours with no security registered against it, from day one. Of course, the cash you used then won't be available for anything else, whether it's that dream holiday or a rainy day.

Bottom line:

Paying cash is a good option if you have the cash and still have enough left over for your other needs.


The advantages of taking out a loan are that you get the car you want now, with little or no deposit, and you still have your savings or other credit facilities available for something else. With this option you pay interest and you can talk to MTF about ways to minimise the cost of your loan.

Bottom line:

Borrowing is a good option if you don't have the money now but want to own the motor vehicle as soon as possible.


Vehicle leasing is a cost-effective way to enjoy the use of a vehicle without the responsibility of ownership. There's no initial outlay and payments may be lower than loan repayments. Because you never actually own the vehicle, you can easily upgrade to a newer model at the end of the lease term or simply walk away.

Bottom line:

Vehicle leasing is a cost-effective option if you use your vehicle for business, plan to use the vehicle for a fixed period of time or like to upgrade your car regularly.

Car finance vs. mortgage finance

Sometimes people use a home loan to finance other things, such as a boat, overseas holiday or a new vehicle. But putting the car 'on the house' may not be the best solution.

Check the total cost

Home loan interest rates are usually lower than car finance rates, but in most cases the term of a home loan is a lot longer. If you put your car 'on the house', you may pay interest for much longer, making the final cost significantly higher.

Think about the unexpected

If you use a revolving credit facility or overdraft to finance your car, you may need to pay it off faster than if you had a car loan, to enjoy any real savings. And doing that will mean using cash that you may need for unexpected costs, such as home repairs or health emergencies.

Finance lease

An MTF finance lease is ideal for a business not wanting to tie up working capital in a vehicle. It may also suit some personal customers.

Key features

  • lease term of 46 to 48 months
  • fixed payments for the term of the lease
  • maintenance option available to cover service costs

How it works

You enjoy the use of the vehicle for the term of the lease and, at the end of the term, the vehicle is offered for sale. If the net sale proceeds exceed the vehicle value agreed when you took out the lease, MTF will pay you the difference. If the net sale proceeds are less than the agreed value, you pay MTF the difference.

Business advantages

If you're a business customer, you may claim GST on the principal portion of each instalment, and your payments are tax deductible. The vehicle is recorded on your balance sheet, so you can also claim depreciation.

Loan vs. lease

Car loan

Finance lease

End of contract
Residual value liability
New or used
Recorded on your balance sheet
Fixed rate for full term of contract
Calculated on GST inclusive price
Calculated on GST exclusive price
Tax benefits for business
Interest and depreciation deductible
Calculated on cost of goods
Risk protection
Comprehensive (required)
Mechanical breakdown insurance (optional)
Payment waiver (optional)
Minimum-maximum 3 - 48 months 46 - 48 months

Who can apply?

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Who can apply for finance?

If you're over 18 years, hold a valid New Zealand driver licence and have regular income, you can apply for finance with MTF.

Can I get car finance if I'm a beneficiary?

Provided you're over 18 years, hold a valid New Zealand driver licence and have regular income, you can apply for car finance with MTF.

Applying for car finance

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How much can I borrow?

You can borrow up to $100,000, as long as you have sufficient security to support the loan and we're confident that you are able to manage the repayments.

What will MTF accept as security?

We accept any type of car, light truck, motobike and farm bike, as long as you can prove you're the legal owner and that there's no other security registered against it. We need to establish the value of any asset you offer as security.

What else do I need to apply?

Before we can approve your car loan we need proof of the following:

  • identity – valid NZ driver licence
  • income – bank statement less than 30 days old, in your name, showing transactions for a calendar month
  • address – bank statement, utility bill, rates, NZ government documentation or insurance confirmation showing your name and physical address

Can I use my MTF loan to pay off other debt?

You may be able to combine your current debt into a single loan with one contract, one interest rate and one regular repayment.

Before you consider this option, ask yourself:

  • are any of your existing loans nearly paid off?
  • is there an establishment fee on the new loan?
  • is the interest rate on the new loan higher than my current lowest rate?
  • will I stay in debt longer by switching?

If you answer 'yes' to any of these questions, you may end up paying more with a consolidated loan.

If you want more information, contact us and we'll help you check it out.

Loan approval

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How soon will I know if my loan is approved?

If you apply in person and bring proof of identity, address and income with you, we can usually give you an answer on the spot.

What happens when my loan is approved?

We'll talk through the loan document, make sure you understand your rights and obligations under the contract, and then ask you to sign it. If you have any concerns or queries regarding the obligations you are entering into, we recommend that you seek advice from your lawyer or accountant before signing the loan document.

Making repayments

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How long do I have to repay my loan?

You can choose the term of your loan – up to 48 months.

How do I make repayments?

You make repayments by direct debit. Your payments are set up from your nominated bank account at the start of your loan term and will happen automatically.

How often do I have to make repayments?

You can make repayments weekly, fortnightly or monthly, to suit your cashflow. If you need to change the frequency, just let us know.

Can I repay my loan early?

Yes, you can pay the entire balance of your loan before the end of your contract, although you will be charged an early settlement fee, which includes a fixed fee and a variable amount to cover the loss we incur in breaking the funding associated with your loan.

Are there any hidden costs?

All fees and the interest rate are set out in the loan agreement you sign at the beginning of the loan term.

What happens if my circumstances change?

If you select payment waiver with your finance, we'll waive your loan repayments if something unexpected happens, such as redundancy or a serious illness, that prevents you from working for an extended time.

You choose the level of cover at the time you take out the loan.

If you can't manage your repayments for another reason, talk to your local MTF contact as soon as possible. We may be able to help you find another solution.

Terms and conditions apply

How do I find out how much I still owe on my loan?

Login to the MTF website to view your account information, including the balance of your loan.

You can update your contact details, alter the bank account details for your repayments and view information on previous accounts.

Consumer protection

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What happens if I have a concern or complaint?

If you have a concern or complaint about a product or service provided by MTF, you should in the first instance contact the person who sold the product or provided the service.

If you don't think a satisfactory outcome has been achieved, contact MTF Customer Support.

03 477 0530, info@mtf.co.nz, PO Box 885 Dunedin 9054.

If you're not satisfied with the response you receive from MTF, or if we're unable to resolve the matter, either party may refer the dispute to the Insurance and Savings Ombudsman Scheme (ISO). The contact details for the ISO are:

info@iombudsman.org.nz, 0800 888 202, PO Box 10-845 Wellington 6143

For more information visit our dispute resolution page.

Have you spoken to an MTF financial adviser?

Motor Trade Finances Limited (MTF) is a Qualifying Financial Entity (QFE) under the provisions of the Financial Advisers Act 2008 (FAA).

As a QFE, MTF takes responsibility for the financial adviser services provided by its QFE advisers. MTF QFE advisers can be found throughout New Zealand at the local MTF offices, and at selected motor vehicle dealers. MTF QFE advisers can provide financial advice in relation to credit contracts and insurance.

Responsible lending

MTF is committed to responsible lending and has adopted the guidelines produced by the Financial Services Federation, of which MTF is a member.