Marac grabs more of the vehicle finance market

Tuesday 7th September 2010

Marac Finance, the Pyne Gould Corp.’s finance unit seeking a merger with two building societies, has grabbed more of the automotive finance market, adding Holden to its books.

The financier secured the rights to promote Holden New Zealand’s own financial services and insurance after it bought GMAC New Zealand’s motor vehicle loan book, the car dealer’s previous promoter.

In the past two years, Marac has entered into relationships with Hyundai, Suzuki and Nissan, and the Holden deal gives it access to about 30% of new car sales, according to Motor Industry Association July data.

The lender also entered into a finance partnership and an insurance joint venture with the Automobile Association.

The deal “will provide a significant opportunity for Marac to increase its market share of the vehicle finance market,” said Chris Flood, general manager of personal finance.

Marac ramped up its foray into automobile financing last year after GE Capital and GMAC quit New Zealand in October 2008 amid the collapse of the finance sector. The lender bought the GMAC book in July for $70 million.

The lender is looking to merge with Canterbury Building Society and Southern Cross Building Society in a bid to gain a banking licence and list on the NZX next year. Stakeholders in the deposit takers are expected to vote on the proposal later this year.

Shares in Marac’s parent Pyne Gould were unchanged at 43 cents on the NZX yesterday.

Businesswire.co.nz

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