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MTF Finance Review

We review MTF, one of New Zealand's oldest car and personal lenders, uniquely offering branch-based face-to-face service and local expertise. We cover the loans available, fees, pros and cons and everything you need to know to help decide if MTF Finance is right for you.
Updated 15 October 2024
Summary of MTF Finance
  • MTF, known by older customers as 'Motor Trade Finance', has over 75,000 customers throughout New Zealand. It's one of New Zealand's largest car lenders, but also offers personal loans and finances other assets.
  • MTF Finance offers secured borrowing for cars, boats, motorbikes, home renovations and debt consolidation, with interest rates between 11.45% and 23.45% p.a. Unsecured loan interest rates range from 14.05% to 24.05% p.a.
  • MTF Finance is unique in that every loan is issued via a branch; there are 50+ branches open Monday to Friday (and many are also open on Saturday and Sunday too). Each branch is owned by a franchisee, who use MTF Finance's system to approve loans.
  • MTF also works with 100+ car dealers throughout New Zealand; some are exclusive with MTF Finance while others will offer a choice of financing companies.
  • Fees include a $380 loan establishment fee, and a $8.24 monthly administration fee charged until the loan is repaid. If you are referred to MTF Finance through an agent, there is a one-off fee of up to $250.
  • Any secured loan will incur a one-off $10.35 fee for recording details on the Personal Property Securities Register (PPSR).
  • These fees are in line with other lenders and finance brokers such as Harmoney, Simplify, banks and finance companies.
  • You don't need to buy a car through a car dealership - MTF Finance lets you finance a car from private sellers, dealers or second-hand car yards - there's no restriction.
  • While MTF Finance is historically known as a car lender, it is increasingly expanding into other personal lending and is focused on personal loans and debt consolidation with secured and unsecured terms.
  • Early repayment is permitted, with a simple $24.50 fee. There may be an additional fee if the market has moved since the loan was written; settlement amounts are calculated daily and existing customers can request this and the breakdown either by calling MTF Finance or logging into the website.
  • MTF Finance is transparent about the interest rates it offers based on a borrower's credit rating - you can see the range here.

In this guide, we look at what MTF Finance offers for Borrowers. We cover:
Advertising Disclosure: MoneyHub may receive a payment if you make a purchase on our website. Such commercial arrangements have no influence on our independent reviews of financial products. Please refer to our advertising policy for more details.
Christopher Walsh
MoneyHub Founder
​MoneyHub's Top Car Finance Options - Avoid high interest rates and fees with our trusted lenders.
  • We focus on highlighting the top car finance options to help you avoid costly high interest rates and unnecessary fees that add up too quickly. Our extensive research has consistently highlighted two trusted lenders who offer fair, competitive interest rates for most borrowers.
  • Simplify – A dedicated car loan specialist, Simplify has built a strong reputation for offering some of the most competitive rates and terms in the market. For 2024, we've named them our Favourite Car Loan Lender for their customer-focused approach and proven ability to get New Zealanders into cars with great finance deals. 
  • Harmoney – If you prefer a low-fee personal lender with an easy, fully online process, Harmoney is a great option for secured car loans. Their streamlined application can help you secure a loan quickly and efficiently.
  • Why Compare? Comparing car finance options can save you thousands. Even a 1% lower interest rate can significantly reduce your repayments. While dealership financing might seem convenient, it often comes with higher costs to boost their profits. By exploring different lenders and brokers (such as Simplify and Harmoney), you can secure a better deal, avoid unnecessary markups, and ensure you're not overpaying for your car.
  • Important: The interest rate you lock in now will impact your repayments for years to come, so choose wisely and compare before committing.
  • Advertising Disclosure: We may receive a commission if you proceed with a loan through our partners. However, this does not influence our recommendations, and all lenders are thoroughly vetted for fairness. Rates vary based on individual credit profiles.

MoneyHub Founder Christopher Walsh shares his comments about MTF Finance

"MTF Finance's branch-based approach is refreshing, which is a reminder that some companies still offer face-to-face service and that personalised service is a key part of the lending process. In a digital age, it's refreshing to see a company that values face-to-face interactions, offering a human touch in a world dominated by online transactions."

"While many lenders are pushing towards fully digital solutions, MTF Finance strikes a balance, understanding that some New Zealanders still prefer a human element for significant financial decisions. Their strategy ensures that they cater to both the tech-savvy borrower and the traditional one".

"However, before diving into any loan, exploring all your options is always good. MTF Finance's transparent rate structure and localised expertise can be enticing, especially for those who value personal interactions. However, always remember to factor in the full cost of borrowing, including establishment fees and monthly charges, to ensure you make the best financial decision for your circumstances. What's important is the total cost of the loan - if you're paying $15,000 to buy a $12,000 car that, for example, is a better deal than paying $17,000 - please compare and don't rush into anything".
Christopher Walsh
MoneyHub Founder

Understanding MTF Finance's Minimum Borrowing Requirements

MTF Finance borrowers are, historically, individuals looking to purchase a car, motorbike or boat, alongside those looking for debt consolidation to minimise their interest costs. MTF Finance's application process is strict - only individuals who meet the following criteria can borrow:
  • Be at least 18 years old
  • Have a regular income
  • Be able to afford the loan you are applying for
  • Provide identity confirmation with either a valid New Zealand Driver’s License or a valid New Zealand Passport, as well as any foreign passport, or a NZ Firearms license.
  • Proof of address

MTF Finance, like any lender, is tightly regulated by legislation to protect borrowers. Every loan application is assessed at the branch, not the Dunedin head office, which arguably makes the process personal. With every application, you'll need to provide:
  • Bank statements for the last 90 days
  • A list of all income sources, your assets (e.g. house, investments, savings etc.), liabilities (e.g. credit cards, personal loans etc.) and your mortgage or rent expenses (separately from liabilities), as well as other essential expenses.

MTF Finance is clear in stating that all decisions are subject to responsible lending inquiries and checks.

Applying for a Loan with MTF Finance

Requesting a Quote for a car, motorbike, boat, debt consolidation or general personal loan follows a standard process:
  1. You can make an application whereby you'll need to select a local MTF Finance branch, include your personal details (date of birth, income per week, fortnight or month, living situation and other essentials).
  2. You won't be provided with an interest rate - instead your application will need to be submitted and then assessed at the branch level.
  3. At the branch you'll be able to discuss any relevant information and evaluate the interest rate offered (if you're approved for a loan).
  4. If you accept a loan, you'll be charged a fee which is added to the loan total. If the loan is secured, you'll pay the PPSA registration fee.
  5. You'll be charged a $8.24 monthly administration fee charged until the loan is repaid. This is an ongoing fee which is designed to cover the costs of matching your payments and deducting them from the balance you owe, customer support and all related assistance.
  • You can log in and view their account transactions and current balance at any time, and all contracts are written in plain English.

Can I pick a branch that isn't nearest to me/where I live when I make an application?

  • Yes - customers can choose the branch they apply to. MTF recognises that people may want to select a more convenient location, for example, closer to work than home, and that existing clients move locations.
  • Since MTF is a network of franchises, it is territory-based and operates effectively as separate entities. Franchises write loans on their books and have limited access to information on the customers of other franchises.
  • Each territory may have one or more franchises in it. If someone enquires/applies to a franchise in a different territory, then the franchise can still sign them up, but they may also direct the consumer to another franchise.

How long does it take for a typical MTF branch to approve a loan application? Is it a quick turnaround time compared to other lenders?

The branch makes the lending decision, allowing for a quick turnaround if customers comes prepared with the right documentation. MTF can approve people on the spot, with funds transferred on the same day.

Franchises support customers through the loan process and beyond. While MTF has a centralised customer support team based in Dunedin, franchises encourage customers to contact them directly. Each franchise can answer their questions and help them if they experience hardship or slip into arrears. 

MTF markets itself as the 'local lending specialists', and the franchises are engaged in their community and accessible in a similar way that bank managers were in the past. MTF's long history of car lending, combined with the fact that many franchises have been car dealers in the past, means MTF offers comprehensive service.
Christopher Walsh
MoneyHub Founder
​MoneyHub's Top Car Finance Options - Avoid high interest rates and fees with our trusted lenders.
  • We focus on highlighting the top car finance options to help you avoid costly high interest rates and unnecessary fees that add up too quickly. Our extensive research has consistently highlighted two trusted lenders who offer fair, competitive interest rates for most borrowers.
  • Simplify – A dedicated car loan specialist, Simplify has built a strong reputation for offering some of the most competitive rates and terms in the market. For 2024, we've named them our Favourite Car Loan Lender for their customer-focused approach and proven ability to get New Zealanders into cars with great finance deals. 
  • Harmoney – If you prefer a low-fee personal lender with an easy, fully online process, Harmoney is a great option for secured car loans. Their streamlined application can help you secure a loan quickly and efficiently.
  • Why Compare? Comparing car finance options can save you thousands. Even a 1% lower interest rate can significantly reduce your repayments. While dealership financing might seem convenient, it often comes with higher costs to boost their profits. By exploring different lenders and brokers (such as Simplify and Harmoney), you can secure a better deal, avoid unnecessary markups, and ensure you're not overpaying for your car.
  • Important: The interest rate you lock in now will impact your repayments for years to come, so choose wisely and compare before committing.
  • Advertising Disclosure: We may receive a commission if you proceed with a loan through our partners. However, this does not influence our recommendations, and all lenders are thoroughly vetted for fairness. Rates vary based on individual credit profiles.

Pros and Cons of MTF Finance

Pros:
  • Established History: MTF is one of New Zealand's oldest and largest car lenders, with over 75,000 customers. Its online reviews are arguably among the best in New Zealand, signalling a service that's trusted amongst borrowers.
  • Broad Loan Spectrum: While known for car loans, they also offer personal loans, finance for other assets, home renovations, and debt consolidation.
  • Branch-Based Service: MTF operates through a branch-based model with over 50 branches across New Zealand. Each branch offers face-to-face service and is owned by a franchisee.
  • Collaboration with Car Dealers: MTF works with 100+ car dealers throughout New Zealand. Some of these collaborations are exclusive.
  • Flexibility: No restrictions on buying cars, allowing customers to finance from private sellers, dealers, or second-hand car yards.
  • Transparency: MTF is transparent about interest rates based on a borrower's credit rating.
  • Early Repayment Option: They allow early loan repayment with a minimal fee.
  • Customer Support: Centralised support in Dunedin with franchises providing local support, emphasising personal connections and assistance.
  • Positive Feedback: MTF has received over 9,000 5-star reviews on TrustPilot, indicating high customer satisfaction.

Cons:
  • Interest Rates: The interest rates range from 11.45% to 24.05%, which might be steep for some individuals.
  • Fees: There is a loan establishment fee, monthly administration fee, PPSR registration fee, and other charges that can add up.
  • Loan Security: The loan typically requires an asset as collateral, and failure to repay can result in repossession of the asset.
  • Missed Payment Penalties: Penalties can be steep if payments are missed or defaulted on.
  • Application Process: While personal, the application process requires various documents and is assessed at the branch level, which may or may not be faster than other methods.

But, be aware:
  1. Fees can be high if you miss payments or default. This is standard with any car lender but it's essential to be aware of to manage your budget and personal finances.
  2. Always compare the offer you receive with other options. Our car loans, personal loans and debt consolidation loans comparisons list alternative lenders who are known for providing loans to borrowers with strong credit histories.

Have the best chance of loan success

The speed and success of an approved loan will depend on how well you complete your loan application. For the best success, be sure to:
  1. Be honest when answering all questions.
  2. Complete every section as best you can, but leaving blanks is fine - MTF advises that applicants can submit the form without completing it fully; MTF will then make contact to complete the rest. MTF's team goes through applications with people. It fills in the blanks, acknowledging that people like this one-to-one approach, given that it can be hard to complete on your own, and many value being able to talk to a real person about each aspect of their application. Given car finance (or personal lending) is often the second most expensive debt people take on (after their mortgage), many New Zealanders want to be able to explain their financial situation or have questions.
  3. Understand the process upfront - MTF uses the trusted Illion bank statement retriever tool to capture applicants' income and outgoings, making it quick and easy. MTF's team is trained to have conversations so customers feel supported and not interrogated about their income, debts and other personal finance questions.

MTF Finance's Fees – What Fees are Charged to Borrowers?

MTF Finance has two fee types - loan fees and missed payment fees. Most borrowers will only detail with loan fees, but it's best to understand everything before signing any loan agreement.

Loan Fees:
  1. Loan Establishment Fee: This is a one-time fee added to your loan when it's set up. It can go up to $380.
  2. Agent Fee: If you're referred to MTF Finance by an agent, you might be charged a one-time fee, which is added to your loan. This can be up to $250.
  3. Monthly Admin Fee: Each month, as you make your instalment payments, there's an administrative fee. This is set at $8.24 monthly.
  4. Personal Property Securities Register (PPSR) Fee: A fee charged only once to both search and document details of the asset you use as a security for the loan. It's priced at $10.35.
  5. Early Repayment Fee: If you decide to clear your loan balance before the scheduled final payment date, you'll be charged a fee of $24.50. There may be an additional fee if the market has moved since the loan was written; settlement amounts are calculated daily and existing customers can request this and the breakdown either by calling MTF Finance or logging into the website.
  6. Loss on Full Prepayment Fee: This is an extra fee if you repay your loan early, and there have been changes in the market interest rates since your loan began. The amount varies.

Missed Payment Penalties & Fees:
  1. Penalty Interest: If you fail to make a payment, there's a penalty interest of 5% p.a., calculated daily on the missed amount. The total charge varies based on the overdue amount.
  2. Repossession Warning Fee: If you get a repossession warning notice, and after 14 days, you still haven't addressed it, there's a fee of up to $155.
  3. Repossession Fee: If a warrant to repossess is issued due to non-payment, you can be charged up to $215.
  4. Recovery Costs: If your asset (used as security) gets repossessed, you'll be responsible for various costs associated with the repossession. These include agent fees, repair, legal, and storage fees. The exact amount varies based on the circumstances.

If you have any questions regarding these fees, it's recommended to contact MTF Finance directly.

MTF Finance - Customer Experience and Feedback

MTF Finance has lots of positive customer feedback on its TrustPilot reviews page, with over 9,000+ 5-star reviews from genuine customers all over New Zealand. The common theme seems to be the helpfulness of customers being continually informed of the progress of their applications throughout the process, making buying a car simple and easy.

Complaints from applicants are limited to the applications being denied, specific cases of the interest rate being too high, or similar matters.

MTF Finance Security

A secured loan is where a borrower puts up an asset (like a vehicle) as collateral for a loan. MTF Finance charges a $10.35 security registration fee to do this. 

Be aware: The asset the loan is secured over can be repossessed if you miss too many loan repayments and default on your loan; additional fees will also apply. For this reason, we suggest making sure the car loan you apply for is affordable over the 1-5 years you plan to repay it. If it isn't, we suggest looking for a more affordable car. Having a car repossessed can affect your employment and other repayment obligations. 

MTF Finance Loans - Our Conclusion

  • MTF Finance stands as a reputable and established car lending company in New Zealand, expanding its horizons to include personal loans and other financing services. They offer a unique blend of personal branch-based interactions with the benefits of modern digital finance.
  • While they provide a range of benefits like face-to-face service, rate transparency, and positive feedback, it's essential to compare interest rates to maximise the chance of finding the best deal, whether it be for a car finance, a personal loan, debt consolidation or anything else.
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