The void left by the egress of GE Money from the retail vehicle loans business has been filled by Marac Finance as it announced a deal with New Zealand Automobile Association Inc (AA) to provide vehicle finance.

It was confirmed by GE Money last year that it will no longer write new vehicle loans. It should be noted though that GE Capital continued to offer vehicle leasing in New Zealand through Custom Fleet.

Next week, AA's deal with GE Money would expire, which would be following the six months timeframe the company came up with its exit plan, The new loans will henceforth be written by Marac Finance.

It should be noted that Marac will have access to AA's 1.2 million customer base with this deal and this is also the third partnership announced by Marac Finance this month as the company extends its footprint in the vehicle finance business.

If adhered to AA's general manager David McLister, the new deal with Marac is based on a very "competitive pricing model" which is based on a customer's risk profile.

However, pre-approved finance would be kept on received by AA's customers to permit them to act as a cash buyer, a competitive lending rate and an easy online application process.

Furthermore, access over the optional loan cover would also be acquired by the customers so that loan payments are paid in the event of redundancy, sickness, disability or death.

(via TopNews New Zealand. Contributed by Girish Kumar Guha)