Several articles in the mainstream and motor vehicle media have sparked us to publish this article to ensure all Jade Car Loans customers are informed and reminded of their obligations. In particular a news report from NSW of the large number of drivers being fined for driving unregistered vehicles and reports around vehicle recalls. How do these issues affect your car loan and motor vehicle finance? We provide this explainer so you're across your responsibilities as a motor vehicle owner and/or driver.
Renewing Vehicle Registration
This article does particularly focus on NSW as that is the news story we read that sparked this story but you can be fairly sure that similar scenarios are playing out across Australia. That is, people forget or completely ignore their car registration renewal.
The news media reported that thousands of drivers have been on the receiving end of hefty fines from the NSW Police for driving unregistered vehicles. With the high tech cameras used by police and road authorities to monitor traffic and check speed, seat belts and mobile phone usage, it’s easier than ever for authorities to identify unregistered vehicles on our roads.
Here are a few points we’ve collated so you appreciate the severity of not renewing your rego and what you can and can’t do if you are car is unregistered.
- Driving an unregistered vehicle attracts financial penalties and in some states, you can lose points from your driver's licence. In NSW the infringement is $697 for light vehicles such as cars and a whopping $1497 for driving an unregistered heavy vehicle with GVM over 4.5 tonnes.
- If you’ve overlooked renewing your rego you’ve probably also overlooked renewing your CTP – Comprehensive Third Party Insurance. That means your car is not covered in the event of an accident where you injure someone else.
- If your car is under finance, you have a car loan or commercial car finance, you are required to have motor vehicle insurance also. This is a requirement of lenders. If you’ve forgotten to register your car, is your insurance also expired? If you are not meeting the requirements of your car finance contract, there could be repercussions as you could be in default of the finance contract.
- Rego, insurance and CTP are often due on or around the same date each year. Some states such as NSW moved to a sticker-less rego several years ago but still send out rego renewal papers. Make sure you keep your current address current with the road authority so you receive your rego papers and put a reminder in your diary, phone or another device.
- Some states offer part payments or instalments for both rego and CTP and many insurers offer monthly payment options.
- If selling an unregistered vehicle or in that case buying an unregistered vehicle, there are requirements such as providing the buyer with proof of entitlement to register the vehicle. Check your state for local requirements.
When taking out cheap car finance with Jade Car Loans or any other lender, you are entering into a legal contract. To meet your end of the bargain you need to ensure your car is registered and insured according to the requirements of the finance agreement.
Vehicle Recalls and Your Car Loan
Vehicle recalls are not uncommon. From time to time manufacturers will recall certain makes or models to rectify an issue that has been identified. Sometimes these issues are extremely serious others are more convenience matters. In most cases the manufacturer repairs/rectifies the vehicle in an acceptable timeframe and you’re back on the road. Different makers will provide owners with different levels of compensation in this situation in regard to a replacement vehicle while yours is being repaired. In these instances there should be no impact on your car loan as the vehicle is repaired and back on the road in a short time.
But then there are the times when an entire model is recalled completely and withdrawn from sale and even from production. Such are several cases we have seen in recent motor vehicle industry media related to new business vehicle finance issues.
If your car is recalled and effectively taken from you due to a fault of the manufacturer, what happens with your car loan? We can provide a blanket explanation that will cover every eventuality but we can provide a few points for consideration:-
You are responsible for meeting your car loan repayments regardless of a recall.
It can be advisable to check with your insurer to see if your policy covers you for a replacement vehicle while the manufacturer is sorting out how they will deal with the no doc car loans Australia issues.
The liability on behalf of the manufacturer may vary according to the specific issue. Compensation may include receiving a complete vehicle replacement or receiving financial compensation for the vehicle at an agreed value. In that case, you can proceed to pay any amount owing on your ABN car loan and proceed to purchase a new vehicle. In some cases, these situations can get messy but unfortunately, they do happen. But most vehicle makers are large global corporations with their reputations to protect and hopefully will have a process to resolve the situation promptly.
So recapping and repeating, set a reminder for your car rego renewal so you don’t cop a fine and you don’t inadvertently end up in default with an unregistered and uninsured vehicle.
For personal car loans and business vehicle finance, contact Jade Car Loans at 1300 000 003
DISCLAIMER: THE DETAILS AND INFORMATION PROVIDED IN THIS ARTICLE ARE NOT INTENDED AS THE SOLE SOURCE OR AS ADVICE IN REGARD TO FINANCIAL INFORMATION BUT FOR GENERAL PURPOSES ONLY. PERSONS REQUIRING ADVICE ON THEIR FINANCIAL SITUATION ARE DIRECTED TO CONSULT WITH THEIR FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATIONS IN THE INFORMATION AS PRESENTED. THE DATA AND DETAILS WHICH MAY HAVE BEEN SOURCED IN PART FROM THIRD PARTY SOURCES.