HGH - Heartland Group Holdings

[winner69]

Correct.....Provincial Finance it was.
Help me out.Prudential Finance went broke years ago? Martin Coffey got caught carrying the can?????
Now back to "The Who Tommy Live+Encore 1989 Los Angeles." My Sunday night rave up.!!

Percy dear fellow

You must have heard of the 'Man from the Pru' as The Prudential was fondly called

Still going strong in the UK

[pierre]

Holden lending.I would expect Holden are carrying the risk.

No way Jose, or Percy, will Holden be carrying the risk for vehicle financing. As a former motor industry exec (not GM) I can assure you that manufacturers will stand many miles (kilometres?) away from any involvement in the vehicle finance contracts written by independent financiers.

[winner69]

The Man from the Pru - The old door to door insurance salesman trick

OMG - I'll suggest to Jeff that as he seems intent on lending to every man and their dog that he get a team of door to door salesmwn and do the yard yakka - I reckon around parts of South Auckland they would drum up a fair bit. A bit short for your tinny today are we, no worries Heartland will fix you up

That's a new channel reaching out to a new set of customers, so all acceptable

[percy]

No way Jose, or Percy, will Holden be carrying the risk for vehicle financing. As a former motor industry exec (not GM) I can assure you that manufacturers will stand many miles (kilometres?) away from any involvement in the vehicle finance contracts written by independent financiers.

Looks very much a Holden promotion,;'On selected models",so I would take that as the same as a Noel Leeming or Harvey Norman, no deposit 3 years interest free promotion, where the retailer pays the interest in the free interest period.
Otherwise why would HNZ bother?

[percy]

Percy dear fellow

You must have heard of the 'Man from the Pru' as The Prudential was fondly called

Still going strong in the UK

Yes ,I may be getting a bit mixed up.Thought we had Prudential finance here in ChCh,that went broke years ago.,as well as Provincial Finance.Can't find any record of it a the companies office so my memory must be better than official records.!!! lol.

[winner69]

Looks very much a Holden promotion,;'On selected models",so I would take that as the same as a Noel Leeming or Harvey Norman, no deposit 3 years interest free promotion, where the retailer pays the interest in the free interest period.
Otherwise why would HNZ bother?

Why should they bother?

Because they seem desperate trying anything to get access to new customers .....grow the book.

Holden owners seen as good prospects who will come back for more loans in the future.?

HNZ seem to be moving down the old financing way path rather than banking, not surprising as that's what in their blood eh.

Becoming a bank was only a marketing ploy, that's what they said. Have they become just a 'respectable' finance business?

Next stop I reckon will be back into property development ... just too tempting maybe

[percy]

Why should they bother?

Because they seem desperate trying anything to get access to new customers .....grow the book.

Holden owners seen as good prospects who will come back for more loans in the future.?

HNZ seem to be moving down the old financing way path rather than banking, not surprising as that's what in their blood eh.

Becoming a bank was only a marketing ploy, that's what they said. Have they become just a 'respectable' finance business?

Next stop I reckon will be back into property development ... just too tempting maybe

Does not work for me.
Still see it as Holden moving "selected models." Just another retailer trying to move stock.The interest comes out of the retailers margin.
Yes I agree Heartland have become a "respectable" business, offering financial products to New Zealanders.The banking licence adds extra security to depositors and shareholders,as Heartland Bank needs to meet rating agency and The Reserve Bank requirements..
Property development.At the meetings I have attended Heartland have stated they will not renter this sector.
I am pleased Heartland are following up on what they said they would do, opening new channels.i finance and Harmoney offer interesting opportunities.

[winner69]

Yes Percy, a "respectable' finance company with 'respectable' in brackets

Get John Campbell or Richie McCaw to endorse relentlessly on TV and we have a new 'respectable' Hanover-like finance business.

Even 'respectable' has to be questioned - lending at 24% for punters to take that holiday doesn't seem too "respectable". Wonder what the penalty rate on that loan is?

Is the new channel 'LENDER OF LAST RESORT'

[Beagle]

This sort of Holden finance, also available on 2014 model run-out HSV's at 2% is known as non-recourse finance. Yes Holden and HSV are shifting slow moving product by effectively discounting tired old product and using that discount to fund cheap / zero interest finance...the customer thinks they're getting product interest free. There is no recourse against Holden N.Z. if customers default on cars they sell to people on no deposit nothing to pay till 2016. Most people will know new vehicles depreciate by ~ 20% the moment you drive out of the showroom and seeing as customers are paying nothing till January 2016 by then the customer is probably 30-35% underwater with their vehicle acquisition seeing as interest really is accruing throughout the loan term.

One thing I learned for sure during the GFC and with all the finance company debacles is if customers have no "skin in the game" in terms of no deposit the default rate is significantly higher. Factor in that they are specially marketing to people of the "calibre" that a "no wallet no worries" marketing campaign would appeal, and I think intelligent prudent business minded people can draw their own conclusions as to whether this is prudent lending and what the likely default rate will be down the road.

[winner69]

Mind you controlling the LENDER OF LAST RESORT channel is not all bad.

Fits with strategy, new channel and certainly niche relative to main banks

And a hugely profitable sector I hear. You don't hear of many loan sharks going broke do you.