About finance

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 will take care of your payments if the unexpected happens.

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

What is insurance shortfall?

Insurance shortfall is the difference between the market value of your vehicle and the amount you owe on it. Insurance shortfall cover pays if your vehicle is stolen or written off, up to $10,000.

Backed by Vero, our mechanical breakdown insurance is built into 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

Simply 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.

• Cars - Download sample Certificate of Insurance
• Motorbikes - Download sample Certificate of Insurance
• Farm bikes - Download sample Certificate of Insurance

*Terms and conditions apply

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.

Establishment

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 $8 per month

Security registration

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

$5 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.

$60 plus a variable amount

Pre-possession

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

No more than $140

Repossession

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.

Variable

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

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.

Borrow

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.

Finance lease

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 are usually 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.

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' isn't always 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'll end up paying 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 have 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.

An MTF finance lease, with the option to buy, 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
• option to buy at the end of the lease term

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 can 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.

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

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

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.

We accept any type of vehicle or mobile farm machinery, 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.

Yes, if someone else is willing to offer an asset as security, you can use it to secure your loan. That person will become co-borrower, so must be over 18 years of age, a New Zealand resident, hold a valid New Zealand driver licence and be able to prove ownership of the asset.

The co-borrower must have sufficient income to support the loan, in the event you are unable to meet your repayments.

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

• identity – a valid NZ driver licence
• address – a phone or power bill addressed to you is helpful
• income – a bank statement, last pay slip or, if you're self-employed, your most recent GST return

If you're having trouble managing personal loans, credit card or hire purchase repayments, MTF 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 my 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 apply in person and bring proof of identity, address and income with you, we can usually give you an answer on the spot.

MTF will get in touch to arrange a convenient time to meet. 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.

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

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.

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

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.

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

If you choose to take out 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 for you 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.

Log in 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 laws associated with the finance industry include:

Credit Contracts and Consumer Finance Act 2003

Credit (Repossession) Act 1997

Motor Vehicle Sales Act 2003

Consumer Guarantees Act 1993

Fair Trading Act 1986

Privacy Act 1993

Personal Property Securities Act 1999

Financial Service Providers (Registration and Dispute Resolution) Act 2008

Financial Advisers Act 2008

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. Our contact details are:

03 4770530, info@mtf.co.nz or 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 for you, either party may refer the dispute to the Insurance and Savings Ombudsman (ISO). The contact details for the ISO are:

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

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 both credit contracts and insurance.