Car financing questions and answers
If you have a question about car finance not answered here, just give us a call, or send us an email and we will be happy to help.
- Who can apply for a car loan?
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- Applying for car finance
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- Our car loan approval process
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- Making repayments on your car loan
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- Consumer protection laws
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- Who can apply for finance?
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If you are over 18, a New Zealand resident, hold a valid NZ driver licence and have a regular income, you can apply for an MTF Direct car loan.
- Can I take out a loan with another person?
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Yes. If you are under 18, or not a New Zealand resident, you can appoint a co-borrower (e.g. parent or sibling) who is. His or her name will appear on the car loan document.
- Can I get finance if I'm a beneficiary?
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Yes. If you are over 18, a New Zealand resident, hold a valid NZ driver licence and have a regular income, we are happy to help.
- How much can I borrow?
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You can borrow up to $100,000, as long as you can provide suitable security to support the value of the car loan, and we consider that you are able to make your repayments.
- What will you accept as security?
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Motor vehicles (cars, vans, trucks, motorcycles and caravans) or mobile farm machinery, as long as you provide us with proof that you are the legal owner and we are able to establish the value of the asset offered.
- Can a friend or relative provide security instead?
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Yes. If someone else is willing to offer an asset as security, you can use that to secure your car loan. That person will become a co-borrower. He or she must be over 18, hold a valid NZ driver licence, be a New Zealand resident and be able to prove ownership of the asset and have sufficient income to support the car loan.
- What paperwork will I need to bring?
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Before we can approve your car loan, we need to see proof of:
- identity (valid NZ driver licence)
- address (e.g. a phone or power bill addressed to you)
- income (your last month's bank statement, your most recent payslip, or your most recent GST return if you are self-employed)
- Can I use my loan to pay off other debts?
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If you are having trouble managing your personal loan, credit card or hire purchase repayments, an MTF credit contract can help you combine all your current debts into a single car loan with one contract, one interest rate and one regular repayment. Before you consider this option, ask yourself the following questions:
- are any of my existing loans nearly paid off?
- is there an establishment fee on the new loan?
- is the consolidated interest rate higher than my current lowest rate?
- will I stay in debt longer by switching?
If you answered 'yes' to one or more of these questions, you may end up paying more for a consolidated loan. If you have any doubts, give us a call and we will check it out for you.
- How soon will I know if my loan has been approved?
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If you apply in person, and have all the right paperwork with you, we can usually give you an answer on the spot. If you apply online, we will get back to you as quickly as possible. To finalise the loan, you will need to visit an MTF Direct representative and provide proof of identity, income and address.
- What happens once my loan is approved?
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Your MTF representative will call you to arrange a convenient time and place to meet. We will talk you through the loan document, make sure you understand your rights and obligations, and ask you to sign the contract.
- How long do I have to repay my loan?
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You choose your car loan term when you first take out your car loan. It can be anywhere up to four years (that's 48 months).
- How do I make repayments?
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All repayments are by MTF Autopay, where we deduct payment from your account to keep your loan right on track.
- How often do I have to make repayments?
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You can make repayments weekly, fortnightly or monthly – whichever suits you best. And you can change your payment frequency if you need – just give us a call.
- Can I repay my loan early?
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Yes. You can repay the car loan before the end of your contract, if you want, although you will be charged an early settlement fee . This includes a fixed administration fee ($50) and a variable amount, to cover our losses in breaking the funding arrangement associated with your contract.
- Are there any hidden costs?
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All our fees and charges are set out clearly in the contract that you sign, at the beginning of the loan term.
- What if my circumstances change?
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By choosing our Payment Waiver option, we waive your car loan repayments if something unexpected happens, e.g. you are made redundant or suffer a serious illness. Simply choose the level of cover that best suits your situation.
If you cannot make your repayments for other reasons, talk to your MTF representative as soon as possible. We may be able to help find a solution. Terms and conditions apply.
- What consumer protection laws cover my finance contract and account with MTF Direct?
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To the extent they apply to a contract, Consumer Protection Laws are:
- the Credit Contracts and Consumer Finance Act 2003
- the Credit (Repossession) Act 1997
- the Motor Vehicle Sales Act 2003
- the Consumer Guarantees Act 1993
- the Fair Trading Act 1986
- the Privacy Act 1993
- the Personal Property Securities Act 1999
- the Financial Service Providers (Registration and Dispute Resolution) Act 2008
- the Financial Advisers Act 2008