Originator
Motor Trade Finances Limited (MTF) was formed in 1971 to enable selected motor vehicle dealers to finance sales of motor vehicles to the public. Since that time, MTF has grown to become one of the largest financiers of motor vehicles in New Zealand, with net loans under administration of NZD583 million at 31 March 2008, from in excess of 58,000 borrowers.
MTF is an investor-owned company, incorporated under the Companies Act 1993, with its shares held by its participating shareholders.
With its head office in Dunedin, MTF has a staff of around fifty, supporting the network of shareholders.
At 31 March 2008, over 600 motor vehicle dealers throughout New Zealand have been approved to use the finance facilities provided by MTF. MTF also operates a direct lending franchise, operating under the same terms and conditions as apply to dealer shareholders.
The standards for shareholder participation ensure that not only does the quality of the business originated meet MTF standards but also that the shareholders have the ability to manage and support the loans they write.
The establishment of the securitisation structure in 1995 assisted in the company’s growth through the provision of more competitive funding costs.
Through its shareholder network, MTF offers a range of finance products:
MTF provides a range of risk protection products for events affecting repayment, such as illness, redundancy, death, insurance shortfall and vehicle breakdown:
Risk products are fully underwritten or provided by Vero Insurance New Zealand Limited (Vero). Vero has an A+ (Strong) insurer financial strength rating given by Standard & Poor’s (Australia) Pty Ltd on 8 January 2009.