With the current flood crisis affecting large areas and many, many people, the need for flood assistance in many forms is critical and essential. Flood relief is available through government aid sources both at the state and federal level. It has been announced that personnel have been boosted to speed up the delivery of cash relief to flood-affected individuals and communities.
The ADF has been deployed to many regions to assist and SES members from WA have arrived in NSW to support local crews and assist communities especially with the massive clean-up ahead. But apart from the immediate concerns, many individuals that have had goods that are under finance damaged and/or written-off, there may be additional worries.
For those with damaged or written-off cars under finance, flood assistance may be appreciated with reassurance and information on what action they can take. Worrying about meeting car repayments can create extreme stress and mental health issues. Knowing what assistance is available and the process to follow may help to alleviate such issues.
For those that are in urgent need to replace their cars to enable them transport to access services and facilities, Jade Car Loans can assist with expediting new car loan applications to facilitate quick replacements. We will also cover off on providing assurance for those that may have car loan applications currently in processing or have pre-approved car loans.
Current Car Loan and Motor Vehicle Finance Holders
The term ‘under finance’ refers to goods such as in this case cars and motor vehicles, which are subject to a personal car loan or business vehicle finance. When taking out these types of secured finance, eg Secured Car Loan and car loans for sole traders, lenders require insurance to be acquired on the car.
- So those with cars currently under finance should be covered by insurance. But car insurance policies do vary in regard to what is and is not covered, possibly this may include flood and storm damage.
- If a car is written-off or damaged due to a flood event, this is the process to follow:-
- Take photos of the car to show the condition with as many angles and images as possible to present a clear visual for the insurer.
- Contact the insurance company as soon as possible. Large numbers of claims will be lodged as a result of the widespread damage caused by this current flood event. The faster a claim is lodged, the faster it may be finalised.
- Many insurance companies offer an online claim service.
- The claims process can vary from insurer to insurer. When lodging the insurance claim, individuals will be advised as to the process undertaken by their individual insurer.
- Some insurers may need to send an assessor to assess the car and confirm it is unrepairable. Some may make decisions based on photos.
- The bank or lender that the car finance is with holds the car as security over the finance and has an interest in the vehicle.
- Contact the car finance lender and advise what has occurred and what steps are being taken.
- Even when the car insurance claim is lodged, the car owner is still responsible to meet their car loan commitments with the monthly payments. If car loan payments are not met, the finance may be deemed in default and/or the credit rating downgraded. It is very important to avoid this situation as it can have long-term impacts. Interest rates on car loans are offered based very much on the credit rating. A downgraded rating may result in higher rates or greater difficulty in achieving car finance and other credit in the future.
- When the insurer processes the claim, the bank or lender holding the security will be reimbursed with the relevant amount due. This may cover the entire amount owed on the car loan and that would finalise the loan. If the insurance claim exceeds the amount owed on the loan, the balance is paid to the insured.
There is no need to wait for the insurer to settle the insurance claim being making a loan application to purchase a new car. We can handle the finance for you and this can be done over the phone and via email.
Car Loan Repayment Relief
Another area of assistance which may be required by flood-impacted businesses and individuals is in regard to relief with car finance repayments. Where income is affected as a result of the heavy rainfall and flood situation and difficulties are faced with making the scheduled loan payments, contact the bank or lender.
In similar situations in the past, most banks and lenders have been extremely understanding and offered a range of options for loan repayment relief. As mentioned above, failure to meet loan repayments can have long-term and serious consequences.
Pre-Approved and ‘In Process’ Loan Applications
If you currently have a car loan application with Jade Car Loans in the quoting or processing stage, the approval process will proceed unless we are otherwise notified. If circumstances have changed as a result of the flood situation and you would like to pause or halt the application please contact your Jade consultant.
Pre-approved car loans have a set time within which they must be used or else the loan offer expires.
Loans for Replacement Cars
Having a car is essential for many but even more so in many of the regional areas which have been worst hit by the floods. To assist those in this situation, we provide a fast and streamlined ABN car finance service and we handle the entire process so our customers can concentrate on other matters. As mentioned above, there is no need to wait for the insurance to be settled before applying. Your Jade consultant will explain that the current loan is due to be settled by the insurer so that issue does not impact the new loan offer.
We trust this information has been of assistance and please feel free to contact us if you have further queries.
Contact Jade Car Loans at 1300 000 003 for quick service to source finance to replace flood-damaged cars.
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.