UDC Finance to boost motor finance business

Tuesday 11th August 2009

UDC Finance, the finance company owned by ANZ Banking Group, has upped the ante in the motor finance sector and signed a nationwide deal with Honda New Zealand to provide finance for the car company’s customers.

UDC, which holds the highest credit rating among New Zealand finance companies with a AA rating at Standard & Poor’s, will fund Honda’s lease direct programme. Competition in the auto finance sector has been heating up as UDC and Marac Finance seek to fill the void left by General Motors’ GE Capital and GMAC, which exited from car lending in New Zealand last October.

“Our total automotive book has grown strongly in recent years to more than $440 million, and this opportunity with Honda NZ has the potential to increase it by around 20%,” said chief executive Anthony Healy in a statement.

“We are confident of continuing growth despite buyer caution in the current economic environment.”

The motor industry has been in a freefall over the past two years, with vehicle sales tumbling some 28% since June 2007, according to government data, still the decline has eased since late 2008 with car sales falling 1.9% in May.

Marac has led the charge in soaking up customers in the absence of GE Money and GMAC, entering similar partnerships with Hyundai Motors and Suzuki New Zealand in May.

Businesswire.co.nz

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