Many people realise the need to buy a car – either as an additional vehicle in the family or exchange another model trading an existing vehicle – but hesitate because they do not have the financial means to do so.
Commercial banks and finance companies provide loans for the purpose but the procedures involved are too stringent to attract customers.
The Car Clearance Centre in Otahuhu offers loan facility through ‘Motor Trade Finance’ (MTF), a cooperative venture.
“Obtaining finance is not a hassle when customers purchase their cars from our showroom. Apart from the usual criteria that is common to all lending institutions such as a trouble-free record and ability to repay, our procedures are simple and easy,” Chief Executive Jack Dube said.
He said that every MTF loan is tailored to suit the income of borrowers, with weekly, fortnightly or monthly repayment options.
“Customers can choose a term to suit their budget (from one month to five years) and obviously the repayment amount and the interest rate would depend on the longevity of the loan. Business customers can claim GST on their purchase at the beginning of the contract. The interest paid is tax deductible and since the vehicle is recorded as an asset, such customers can also claim depreciation,” he said.
Cars can also be leased through MTF on long-term contracts (46 to 48 months) on fixed payment, maintenance and with the option to purchase the car at the end of the term.
The company also provides insurance services for cars purchased. Depending on the model of the vehicle, financial ability of the purchaser and the need, a number of options including Comprehensive and Third Party cover are available.