The COVID-19 crisis has had devastating economic impacts across Australia with many individuals and businesses facing difficulties meeting their car loan repayments obligations. We have fielded multiple enquiries from our Jade Car Loans customers requiring information and we have compiled this information blog to assist as best we can at this point.
Different support and relief measures are being offered by many organisations for both individuals and businesses. Depending on whether you have a personal car loan or a business car finance package may determine the best course of action for your particular requirements. Using tools like the business car loan repayment calculator can further guide your decisions in these challenging times.
Sourcing Car Loan Repayment Relief
The first step for both consumer car loans and business car finance loans is to go directly to your lender’s website.
We have noted that most banks and lenders have set up websites and web pages specifically dedicated to their support for their loan customers.
These sites may be differentiated by consumer and business or by specific loan types, i.e. car loans.
The contact details for that lender are usually clearly displayed and most are requesting customers to make contact via email as they are dealing with large volumes of phone calls.
Where possible, send the lender an email that details your contact information; your car loan account information, including if it's a low doc car loan; clearly states that you are requesting COVID-19 support; the type of relief you would like, the most common being a 6 month deferment of repayments; and your specific financial hardship circumstance. For example, individuals could state if they have been stood down, etc. Business customers should state their usual turnover and the decrease being realised due to the coronavirus so the lender can determine if they are eligible for small business or other support.
General Car Loan Relief Information
- Car finance is a major part of our finance business and as such we are accredited with multiple banks and lenders and deal with many customers. On observation of the impact policies being offered by lenders, we can deduce that no blanket approach can be used to describe car loan relief.
- Individual banks and lenders have developed their policies but most are offering up to 6 month deferment of car loan repayments.
- Policies may differ for personal and business loans.
- Deferred payments mean that the financial obligation still exists but you can take a payment holiday and resume the regular repayment schedule in the set 3-6 month time period. This effectively extends your overall loan term and interest may still be charged over the extended period.
- Deferment of car loan repayments is not automatically issued to all car loan customers. Individuals and businesses must apply to be granted this measure.
- If you do not apply/request a deferment and you default on payments, the lender has the right to repossess your vehicle. So it is important to contact your lender if you are in financial hardship.
- A deferment is different from a waiver. A waiver means the payment or financial obligation is forgiven, deleted or forgotten and never has to be paid. This may apply to some fees by some government authorities and other organisations but does not appear to be offered by car loan lenders.
Car Loan Lenders Support
We have managed to compile contacts for some car loan lenders below and if your lender is not on the list, please source their website for details.
ANZ
If your car loan is with ANZ, click here.
WESTPAC
If your car loan is with Westpac, click here.
COMMONWEALTH BANK
If your car loan is with the CBA, click here.
MACQUARIE BANK
If your car finance is with Macquarie Bank, click here.
Government Support
The Federal Government, individual state and territory governments, and local councils have a range of support measures in place to assist individuals and businesses, including those seeking commercial car finance, who have had their income affected by COVID-19. Please search the relevant websites to see what support you may be entitled to. This can assist with making your boat loan repayments or "commercial car finance" obligations without requiring deferment.
At Jade Car Loans we’ve moved to work from home arrangements but will be providing continuity of service throughout the COVID-19 crisis.
DISCLAIMER: THE INFORMATION PROVIDED SHOULD BE USED AS A GUIDE ONLY. ALL INDIVIDUAL LOANS AND ARRANGEMENTS WITH SPECIFIC LENDERS SHOULD BE MADE DIRECTLY. JADE BOAT LOANS IS NOT IN A POSITION TO PROVIDE SPECIFIC ADVICE ON ANY SPECIFIC CAR LOAN.
