Simplify vs MTF vs UDC vs Heartland - Which Car Loan is Best (and Cheapest)
Compare Simplify, MTF Finance, UDC Finance & Heartland Bank car loans and understand how to choose the right lender. We outline interest rates, fees and must-know tips.
Updated 3 November 2025
Summary
To help you make an informed choice about your lender, this guide compares these lenders across rates, fees, borrower experience, and more to help you decide which is right for you. We cover:
November Alert: Simplify Slashes Rates - now from 6.85% p.a.
For borrowers with decent credit and affordability (we believe if you're reading and comparing on MoneyHub, there's a greater chance that's you), Simplify just dropped its rates to the lowest we've seen in some time:
Many readers checking multiple lenders and reading guides already have the credit profile these rates require - you can confirm this in 1-2 minutes using Simplify.
Know This First:
The table below outlines the options available and the differences between the lenders:
Summary
- Every year, thousands of New Zealanders unnecessarily hand over an extra $5,000 to car lenders. Don't be one of them.
- We believe the average New Zealander likely overpays at least $2,000 on their car loan by not shopping around - most car buyers don't compare rates which means they're unlikely to get the best deal.
- If you want to save, it's essential to compare the rates on offer. Borrowers often compare Simplify, MTF Finance, UDC Finance and Heartland Bank, who are the dominant players outside of the likes of Toyota Finance and dealer-arranged finance.
- While Simplify offers competitive rates through wholesale pricing and volume deals that it passes on to borrowers, many New Zealanders taking on a car loan will opt for MTF, UDC, or Heartland despite the higher costs.
- Our view is simple - car finance is expensive, and if you pay a higher interest rate, you'll spend more money repaying the loan. We believe dealer finance is, for many, the most expensive option. Meanwhile, big players like UDC Finance, MTF Finance and Heartland will usually be more expensive than smaller players, such as Simplify and other car loan brokers or specialists, but still need to win business by being somewhat competitive.
To help you make an informed choice about your lender, this guide compares these lenders across rates, fees, borrower experience, and more to help you decide which is right for you. We cover:
- Simplify vs MTF Finance
- Simplify vs UDC Finance
- Simplify vs Heartland Bank
- Why Do Some Borrowers Choose Higher-Cost Lenders?
- Frequently Asked Questions
- Conclusion
November Alert: Simplify Slashes Rates - now from 6.85% p.a.
For borrowers with decent credit and affordability (we believe if you're reading and comparing on MoneyHub, there's a greater chance that's you), Simplify just dropped its rates to the lowest we've seen in some time:
Many readers checking multiple lenders and reading guides already have the credit profile these rates require - you can confirm this in 1-2 minutes using Simplify.
Know This First:
- Simplify acts as an online broker, securing wholesale rates from lenders like Heartland Bank, which often results in lower costs for borrowers. This is similar to how mortgage brokers compare lenders and obtain industry bulk volume discounts that homeowners can't get directly from the same lenders.
- However, MTF Finance and UDC Finance, with their extensive physical networks, and Heartland, with its direct lending model, attract customers through brand familiarity, in-person service, or perceived flexibility. Understanding these trade-offs is crucial for selecting the best car loan that suits your needs.
- There are several red flags when getting car finance, including a dealer won't disclose their commission, an interest rate above 20% p.a., pressure to decide immediately, insurance products pushed on you and high-fee early repayment penalties.
The table below outlines the options available and the differences between the lenders:
Lender |
Current Rates |
Application Process |
Loan Approval Time |
Best For |
100% online |
1-3 hours |
|
||
In-branch, phone, online |
Same day - 2 days |
|
||
At dealership, online |
Instant at dealer |
|
||
In-branch, phone, online |
1-3 business days |
|
Simplify vs MTF Finance
Simplify is an online broker that compares and negotiates car loans from multiple lenders, including Heartland, to secure wholesale rates. Interest rates range from 7.05% to 14.50%, with an establishment fee of $276, a $500 referral fee, and a $10 registration fee. Rates are, for most borrowers, lower than MTF due to wholesale pricing from Heartland.
MTF Finance is a traditional lender with over 50+ franchise offices nationwide, offering secured and unsecured personal loans with a focus on face-to-face service and car lending. Secured loan rates range from 11.35% to 23.35%, with unsecured rates from 13.85% to 23.85%. Fees include a one-time establishment fee of up to $376, a monthly fee of $8.50, and a PPSR fee of $10.35. We believe the higher rates reflect the overhead costs (staff, franchise costs, advertising) of running physical branches, as well as the generally higher operating costs associated with Simplify's low-cost operation.
MTF Finance is a traditional lender with over 50+ franchise offices nationwide, offering secured and unsecured personal loans with a focus on face-to-face service and car lending. Secured loan rates range from 11.35% to 23.35%, with unsecured rates from 13.85% to 23.85%. Fees include a one-time establishment fee of up to $376, a monthly fee of $8.50, and a PPSR fee of $10.35. We believe the higher rates reflect the overhead costs (staff, franchise costs, advertising) of running physical branches, as well as the generally higher operating costs associated with Simplify's low-cost operation.
Borrower Experience
- Simplify is a fully online application that provides quick quotes and eliminates the need for haggling. The brokerage services operate similarly to a mortgage or insurance broker, presenting you with offers from different lenders. Simplify is focused on delivering convenience and speed.
- MTF Finance offers in-person consultations at local branches, as well as online and phone options. We believe MTF appeals to those who value personal interaction, trust established brands, and want in-person support for those who ask questions and sign loan documents. The reality is some borrowers will pay more for their loans because of these perceived benefits.
Unique Features
- Simplify negotiates on your behalf, saving time and potentially securing better terms as it works with one specific lender. Simplify works with borrowers who have deposits, as well as those seeking flexible loan amounts that cover 100% of the vehicle cost.
- MTF Finance offers personal lending options, such as wedding loans, home improvement loans, and other alternatives, so borrowers may find it useful to form a relationship with their local MTF branch or franchisee for further borrowing. However, it's essential to compare interest rates and fees as MTF is not known for market-leading interest rates.
Simplify vs UDC Finance
Simplify is an online broker that compares and negotiates car loans from multiple lenders, including Heartland, to secure wholesale rates. Interest rates range from 7.05% to 14.50%, with an establishment fee of $276, a $500 referral fee, and a $10 registration fee. Rates are, for most borrowers, lower than UDC Finance due to wholesale pricing from Heartland.
UDC Finance is a major New Zealand lender offering vehicle and corporate loans, often through partnerships with car dealerships, with a focus on flexible financing options. Secured loan rates typically range from 10.95% to 18.95%, with fees including up to a $350 establishment fee, $10 PPSR, and potential dealer-specific charges. We believe the higher rates reflect the overhead costs (including dealer networks, corporate infrastructure, and advertising) of UDC's operations compared to Simplify's low-cost online model.
UDC Finance is a major New Zealand lender offering vehicle and corporate loans, often through partnerships with car dealerships, with a focus on flexible financing options. Secured loan rates typically range from 10.95% to 18.95%, with fees including up to a $350 establishment fee, $10 PPSR, and potential dealer-specific charges. We believe the higher rates reflect the overhead costs (including dealer networks, corporate infrastructure, and advertising) of UDC's operations compared to Simplify's low-cost online model.
Borrower Experience
- Simplify is a fully online application that provides quick quotes and eliminates the need for haggling. The brokerage services operate similarly to a mortgage or insurance broker, presenting you with offers from different lenders. Simplify is focused on delivering convenience and speed.
- UDC Finance offers financing primarily through car dealerships, providing a seamless experience for buyers at the point of sale, as well as online and phone options. We believe UDC appeals to those who value the convenience of arranging finance during a vehicle purchase and trust UDC's established reputation. The reality is some borrowers will pay more for their loans because of these perceived benefits.
Unique Features
- Simplify negotiates on your behalf, saving time and potentially securing better terms as it works with one specific lender. Simplify works with borrowers who have deposits, as well as those seeking flexible loan amounts that cover 100% of the vehicle cost.
- UDC Finance offers flexible loan structures. However, it's essential to compare interest rates and fees, as UDC's dealer-based model often results in higher costs compared to Simplify's wholesale rates.
Simplify vs Heartland Bank
Simplify is an online broker that compares and negotiates car loans from multiple lenders, including Heartland, to secure wholesale rates. Interest rates range from 7.05% to 14.50%, with an establishment fee of $276, a $500 referral fee, and a $10 registration fee. Rates are, for most borrowers, lower than Heartland's direct loans due to wholesale pricing from Heartland.
Heartland Bank is a direct lender offering personal loans, vehicle finance, mortgages, and other banking services, with a focus on digital and traditional banking. Secured vehicle loan rates typically range from 9.95% to 17.95%, with fees including an establishment fee of up to $295, a $10 PPSR charge, and potential account maintenance fees.
We believe the higher rates reflect Heartland's operational costs (marketing, banking infrastructure, staff) compared to Simplify's streamlined broker model.
Heartland Bank is a direct lender offering personal loans, vehicle finance, mortgages, and other banking services, with a focus on digital and traditional banking. Secured vehicle loan rates typically range from 9.95% to 17.95%, with fees including an establishment fee of up to $295, a $10 PPSR charge, and potential account maintenance fees.
We believe the higher rates reflect Heartland's operational costs (marketing, banking infrastructure, staff) compared to Simplify's streamlined broker model.
Borrower Experience
- Simplify is a fully online application that provides quick quotes and eliminates the need for haggling. The brokerage services operate similarly to a mortgage or insurance broker, presenting you with offers from different lenders. Simplify is focused on delivering convenience and speed.
- Heartland Bank offers a digital-first application process, complete with online quotes, alongside traditional banking services that can be accessed through phone or in-person support. We believe Heartland appeals to those who value its established banking brand and prefer a lender offering additional financial products, such as savings accounts or mortgages. The reality is some borrowers will pay more for their loans because of these perceived benefits.
Unique Features
- Simplify negotiates on your behalf, saving time and potentially securing better terms as it works with one specific lender. Simplify works with borrowers who have deposits, as well as those seeking flexible loan amounts that cover 100% of the vehicle cost.
- Heartland Bank offers a broad range of financial products beyond vehicle loans, such as reverse mortgages and savings accounts, which may appeal to borrowers seeking a one-stop financial provider. However, it's essential to compare interest rates and fees, as Heartland's direct lending model often results in higher costs compared to Simplify's wholesale rates.
Why Do Some Borrowers Choose Higher-Cost Lenders?
Given the cost of car finance and how even a 2% higher interest rate can, for example, mean a $30,000 loan costs $1,550 more when repaid over five years. Yet many borrowers throughout New Zealand opt for higher-cost lenders, such as MTF Finance, UDC Finance or Heartland Bank, over the likes of Simplify (and other brokers), which offer better deals.
We believe several factors drive this decision, even when it means paying more in interest and fees over the life of the loan. Understanding these reasons can help you make an informed choice about your car loan.
1) Brand Trust and Familiarity: Established lenders like MTF Finance, with over 50 franchise offices nationwide, UDC Finance, known for its dealer partnerships, and Heartland Bank, a trusted name in banking, benefit from strong brand recognition. We believe borrowers often perceive these lenders as more reliable or secure, especially those unfamiliar with online brokers like Simplify. This trust can outweigh the cost savings Simplify offers through its lower rates and streamlined model.
2) In-Person Service and Personalisation: MTF Finance's face-to-face consultations at local branches, along with UDC's integration with car dealerships, provide a hands-on experience that some borrowers value. We believe this personal touch appeals to those who prefer discussing loan terms in person or want guidance during the vehicle purchase process. Simplify's fully online process, while efficient, may feel less personal to borrowers who prefer to talk to someone in person, even if it comes with higher rates; that is a price some borrowers are willing to pay, given what we assume is their unfamiliarity with car lending.
3) Convenience of Dealer Financing: UDC Finance's partnerships with car dealerships nationwide make it a go-to for borrowers arranging finance at the point of sale. We believe this convenience—where financing is seamlessly integrated into the car-buying process—can overshadow UDC's higher rates and fees. Our guide to the drawbacks of car dealership finance, explains how expensive it can be. Simplify requires borrowers to apply independently, which, while cost-effective, may feel less immediate for those buying through dealers. However, the benefits of pre-approved car finance (and the upfront awareness of what interest rate you'll pay) arguably outweigh the non-financial benefits that more expensive lenders offer.
4) Perceived Flexibility and Additional Services: Lenders like UDC and Heartland offer flexible loan structures, such as financing Clean Car penalties or insurance (UDC) or providing a broad range of banking products like savings accounts and mortgages (Heartland). We believe these options attract borrowers with complex needs or those seeking a one-stop financial provider, even if Heartland's rates (9.95%–17.95%) are higher than Simplify's. MTF's personal lending options, such as wedding or home improvement loans, also encourage borrowers to build long-term relationships despite higher costs.
5) Lack of Awareness About Brokers: Some borrowers may not understand how online brokers, such as Simplify, work or assume they can't access wholesale rates directly. We believe this knowledge gap leads some to default to traditional lenders like MTF, UDC, or Heartland, whose marketing and physical presence make them more visible. Simplify's model, similar to that of a mortgage or insurance broker, saves time and money by negotiating on behalf of borrowers; however, this advantage may go unnoticed by those unfamiliar with the process.
Our view is simple: While Simplify's lower rates, transparent fees and online convenience make it a trusted choice for pre-approval finance, MTF, UDC, and Heartland attract customers through brand trust, in-person service, dealer convenience, and perceived flexibility. Car finance is too expensive to get wrong; we believe comparing rates and fees is crucial to avoid overpaying and not rushing into a loan just because a lender or broker is easy to talk to. What matters is the interest rate and the total cost of the loan.
We believe several factors drive this decision, even when it means paying more in interest and fees over the life of the loan. Understanding these reasons can help you make an informed choice about your car loan.
1) Brand Trust and Familiarity: Established lenders like MTF Finance, with over 50 franchise offices nationwide, UDC Finance, known for its dealer partnerships, and Heartland Bank, a trusted name in banking, benefit from strong brand recognition. We believe borrowers often perceive these lenders as more reliable or secure, especially those unfamiliar with online brokers like Simplify. This trust can outweigh the cost savings Simplify offers through its lower rates and streamlined model.
2) In-Person Service and Personalisation: MTF Finance's face-to-face consultations at local branches, along with UDC's integration with car dealerships, provide a hands-on experience that some borrowers value. We believe this personal touch appeals to those who prefer discussing loan terms in person or want guidance during the vehicle purchase process. Simplify's fully online process, while efficient, may feel less personal to borrowers who prefer to talk to someone in person, even if it comes with higher rates; that is a price some borrowers are willing to pay, given what we assume is their unfamiliarity with car lending.
3) Convenience of Dealer Financing: UDC Finance's partnerships with car dealerships nationwide make it a go-to for borrowers arranging finance at the point of sale. We believe this convenience—where financing is seamlessly integrated into the car-buying process—can overshadow UDC's higher rates and fees. Our guide to the drawbacks of car dealership finance, explains how expensive it can be. Simplify requires borrowers to apply independently, which, while cost-effective, may feel less immediate for those buying through dealers. However, the benefits of pre-approved car finance (and the upfront awareness of what interest rate you'll pay) arguably outweigh the non-financial benefits that more expensive lenders offer.
4) Perceived Flexibility and Additional Services: Lenders like UDC and Heartland offer flexible loan structures, such as financing Clean Car penalties or insurance (UDC) or providing a broad range of banking products like savings accounts and mortgages (Heartland). We believe these options attract borrowers with complex needs or those seeking a one-stop financial provider, even if Heartland's rates (9.95%–17.95%) are higher than Simplify's. MTF's personal lending options, such as wedding or home improvement loans, also encourage borrowers to build long-term relationships despite higher costs.
5) Lack of Awareness About Brokers: Some borrowers may not understand how online brokers, such as Simplify, work or assume they can't access wholesale rates directly. We believe this knowledge gap leads some to default to traditional lenders like MTF, UDC, or Heartland, whose marketing and physical presence make them more visible. Simplify's model, similar to that of a mortgage or insurance broker, saves time and money by negotiating on behalf of borrowers; however, this advantage may go unnoticed by those unfamiliar with the process.
Our view is simple: While Simplify's lower rates, transparent fees and online convenience make it a trusted choice for pre-approval finance, MTF, UDC, and Heartland attract customers through brand trust, in-person service, dealer convenience, and perceived flexibility. Car finance is too expensive to get wrong; we believe comparing rates and fees is crucial to avoid overpaying and not rushing into a loan just because a lender or broker is easy to talk to. What matters is the interest rate and the total cost of the loan.
Frequently Asked Questions
We answer common questions below - please be aware that if you're unsure about anything in the loan offer or contract, ask the lender or broker. Car finance is too expensive to get wrong.
Warning: Dealer Finance Markup
Many dealers add a commission of 1-3% on top of the lender's base rate. Always ask:
Warning: Dealer Finance Markup
Many dealers add a commission of 1-3% on top of the lender's base rate. Always ask:
- "What is the base rate from the lender?"
- "What commission is the dealer receiving?"
- "Can I get a better rate by going directly to the lender?"
Which lender offers the lowest car loan rates?
Simplify typically offers the lowest rates, thanks to its online broker model, which secures wholesale pricing from lenders like Heartland. In comparison, MTF Finance rates are known to be higher, as are those from UDC Finance and Heartland Bank. You can see the latest range of interest rates in our car finance comparison guide and car finance calculator.
Why do some borrowers choose more expensive car financing over specialist car loan brokers who often offer lower interest rates?
There are many reasons. For example, MTF Finance attracts borrowers with its 50+ franchise offices nationwide, offering in-person consultations and personalised service. We believe that some borrowers value this face-to-face interaction and trust MTF's established brand, even though its rates and fees are often higher than those of car loan brokers like Simplify.
Is UDC Finance better for car loans through dealers?
UDC Finance is popular for dealer-arranged financing, offering a seamless experience where buyers obtain financing directly from the dealership. We believe this convenience appeals to borrowers buying through dealerships despite UDC's higher rates and a (likely) dealership margin. Pre-approved car finance, offered by lenders such as Simplify, Harmoney, and other specialists, provides quotes for interest rates and total costs upfront, which can then be compared to those offered by UDC. However, we know that hundreds of car buyers take the 'convenient' option every month and overpay for their car loans.
Does Heartland Bank offer lower rates than Simplify?
No, Simplify generally offers lower rates than Heartland Bank because Simplify sources wholesale rates directly from Heartland and other lenders. We believe Heartland's higher rates reflect its direct lending model and operational costs, making Simplify a cheaper option for many borrowers.
What fees should I expect from these lenders?
- Simplify: $276 establishment fee, $500 referral fee, $10 registration fee.
- MTF Finance: Up to $376 establishment fee, $8.50 monthly, $10.35 PPSR.
- UDC Finance: Up to $350 establishment fee, $10 PPSR, and potential dealer-specific charges.
- Heartland Bank: Up to $295 establishment fee, $10 PPSR, and potential account maintenance fees.
Why is Simplify's online broker model popular?
Simplify acts like a mortgage or insurance broker, comparing offers from multiple lenders to secure wholesale rates. We believe this saves borrowers time and money by negotiating better terms without the need for haggling, unlike traditional lenders like MTF, UDC, or Heartland, which often have higher overhead costs. The value of having pre-approved finance is outlined in our dedicated guide.
Can Simplify finance 100% of the vehicle cost?
Yes, Simplify offers flexible loan amounts that can cover up to 100% of the vehicle cost, making it suitable for borrowers with or without deposits. We believe this flexibility, combined with lower rates, makes Simplify competitive against MTF Finance, UDC Finance, and Heartland Bank, which often have stricter terms and higher interest rates.
Our Conclusion and Warnings
When comparing Simplify, MTF Finance, UDC Finance and Heartland Bank for your next car loan, the numbers tell a clear story:
As with any car loan, lower interest rates save you thousands of dollars. Our analysis shows that car loan brokers do add value by offering exclusive rates with lenders, and Simplify consistently provides the most competitive rates through this approach. Traditional lenders, such as MTF Finance, UDC Finance and Heartland Bank usually charge significantly more. However, we strongly suggest comparing quotes given the range of interest rates you'll likely be offered - our car finance guide is a helpful starting point.
What does this all mean?
On a typical $30,000 car loan over 5 years, you may be offered two interest rates - which one you select affects how much you'll pay in total:
That's $5,000 you could spend on fuel, insurance, maintenance, invest or just have spare. The choice seems obvious, yet thousands of New Zealanders continue to choose more expensive options every month.
November Alert: Simplify Slashes Rates - now from 6.85% p.a.
For borrowers with decent credit and affordability (we believe if you're reading and comparing on MoneyHub, there's a greater chance that's you), Simplify just dropped its rates to the lowest we've seen in some time:
Many readers checking multiple lenders and reading guides already have the credit profile these rates require - you can confirm this in 1-2 minutes using Simplify.
As with any car loan, lower interest rates save you thousands of dollars. Our analysis shows that car loan brokers do add value by offering exclusive rates with lenders, and Simplify consistently provides the most competitive rates through this approach. Traditional lenders, such as MTF Finance, UDC Finance and Heartland Bank usually charge significantly more. However, we strongly suggest comparing quotes given the range of interest rates you'll likely be offered - our car finance guide is a helpful starting point.
What does this all mean?
On a typical $30,000 car loan over 5 years, you may be offered two interest rates - which one you select affects how much you'll pay in total:
- With Simplify at 9%: Total interest paid = ~$7,200
- With MTF at 15%: Total interest paid = ~$12,450
- Your savings with Simplify: Over $5,000
That's $5,000 you could spend on fuel, insurance, maintenance, invest or just have spare. The choice seems obvious, yet thousands of New Zealanders continue to choose more expensive options every month.
November Alert: Simplify Slashes Rates - now from 6.85% p.a.
For borrowers with decent credit and affordability (we believe if you're reading and comparing on MoneyHub, there's a greater chance that's you), Simplify just dropped its rates to the lowest we've seen in some time:
Many readers checking multiple lenders and reading guides already have the credit profile these rates require - you can confirm this in 1-2 minutes using Simplify.
What car finance company is best
There is no "best" option, but different lenders and brokers have their appeal based on the borrower's needs. In general, we outline each option's typical client base:
Simplify is popular with borrowers who:
MTF Finance is popular with borrowers who:
UDC Finance is popular with borrowers who:
Heartland is popular with borrowers who:
Important: Don't overpay on your car finance. Before signing any car loan agreement, we suggest you do the following:
Our View: Car finance doesn't have to be expensive, but it often is when borrowers prioritise convenience over cost.
Simplify is popular with borrowers who:
- Want the lowest possible interest rate
- Are comfortable with online applications
- Value saving money over in-person service
- Want pre-approved finance before shopping for a vehicle
- Prefer transparent, upfront pricing with no nonsense
MTF Finance is popular with borrowers who:
- Strongly prefer face-to-face interactions
- Have complex financial situations requiring personal guidance
- Plan to use other MTF lending products
- Are willing to pay premium rates for local branch convenience
UDC Finance is popular with borrowers who:
- Are buying directly from a dealership
- Want the convenience of arranging everything in one place
- Understand and accept the higher costs for this convenience
- Need specific dealer-related financing options
Heartland is popular with borrowers who:
- Want a full-service banking relationship
- Need other financial products alongside your car loan
- Prefer dealing directly with a bank rather than a broker
- Value brand recognition over cost savings
Important: Don't overpay on your car finance. Before signing any car loan agreement, we suggest you do the following:
- Compare rates - Even a 2% difference costs thousands over the loan term
- Calculate total costs - Include all fees, not just the interest rate
- Get pre-approved - Know your budget before you shop
- Read the fine print - Understand early repayment penalties and fees
- Consider the total cost - A lower monthly payment over a longer term often costs more overall
- Shop around - Never accept the first offer, especially from dealers
Our View: Car finance doesn't have to be expensive, but it often is when borrowers prioritise convenience over cost.
- While MTF's branch network, UDC's dealer integration, and Heartland's banking services have their place, they often come at a significant premium.
- For most borrowers, Simplify's combination of wholesale rates, transparent fees, and streamlined online process represents the best value in New Zealand's car loan market. The savings, often thousands of dollars, far outweigh any perceived benefits of paying higher rates for traditional service models.
- Every percentage point matters. A car loan is likely your second-largest financial commitment after housing. Taking an extra hour to compare options and apply through a broker like Simplify could save you the equivalent of months of loan payments.
- Don't let familiarity, convenience, or sales pressure cost you thousands - it's too expensive to get wrong.
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