A recently published article in the mainstream media has prompted us to reach out to both individuals and businesses who have been rejected for car finance in recent months with the invitation to contact Jade Car Loans to see how we can assist.
The article related to new car dealers and automotive industry spokespeople expressing their views and (in our words) frustration that dealers found a loss in sales during the past few months of the coronavirus scenario, as some new car buyers were having their loan applications rejected. Dealers believed that these buyers had good credit profiles and it was their view that they should have been offered a loan.
New car dealers were understandably experiencing a downturn in sales due to issues around the crisis, they wanted to sell cars and had the buyers ready to sign only to have deals fall through due to loan applications being refused.
As a major broker in the motor vehicle finance sector, Jade Car Loans recognises customers' buying and selling but sees several key issues that require explanation here. We also provide tools like the business car loan calculator to assist buyers in understanding their potential repayments. At the same time, we are offering a potential solution for buyers with ‘second chance car loans'.
The Facts
Fact 1: We fully understand the car dealers’ views, but it is important to note upfront, that it isn't the car dealer or any seller’s role to assess whether a buyer is suitable for a car loan or a business suited for motor vehicle finance, including an ABN car loan. Yes, many have extensive experience in selling motor vehicles which involves the buyer sourcing finance. So they would have a good grasp of what lenders are looking for when offering a loan.
But we remind you and refer you to a recent article we published regarding Responsible Lender Regulations from ASIC. The National Consumer Credit Protection Act 2009 covers a lot of details but a key issue is that a lender isn't able to make a customer a loan offer if lending is not a suitable option. So in defence of the lender activity, they are required to carry out their business under legislation.
Fact 2: We reported in our blog series that before COVID-19 lenders were tightening their activities. The impact of COVID-19 on the banks and other lenders was significant and some of those impacts still have time to play out.
Over a short duration of time, many people were placed on JobKeeper and JobSeeker and as a result of their reduced income contacted their banks to defer loan payments and home mortgage payments. Amid these changes, the demand for financial solutions such as the no doc car loan emerged. It all happened seemingly very, very quickly and as major players in the lending sector, we concur that the industry needed to take a moment to assess its situation.
Economically, the forecast was uncertain at the time, so it is not surprising that many lenders would take a far more cautious approach to offering car loans.
Fact 4: After an initial period of tightened lending, lenders eased and we are currently experiencing much more ‘operations as normal' to offer you a second chance, a workable solution.
How does Jade Car Loans assist you?
- For a start, the lending scene has eased since the initial stages of the COVID-19 crisis and your same application may now be accepted. But if you approach the lenders again yourself, the multiple applications can place a negative imprint on your credit profile. When a finance broker presents your application, even to multiple lenders, no negative impact occurs.
- Throughout the crisis, a lot of borrowers appear to have shown a preference for big banks. Jade Car Loans is accredited with leading Australian banks and finance companies. PLUS we have industry-only lending sources.
- So we have more choices to source you a cheap car loan.
- Using a broker, especially Jade offers many benefits over approaching a lender directly yourself. At Jade, we understand the guidelines that individual lenders are working to meet and we can select the lender that best suits your application.
- Banks and some finance companies must meet stringent internal lending guidelines and are rarely in a position to negotiate with individual applicants.
- Jade Car Loans has strong bargaining power courtesy of a large amount of motor vehicle finance we write with the banks and we have the skills and the drive to negotiate on your behalf.
- We’re highly experienced and our only interest is getting you the best car finance deal possible.
The Second Chance Car Loan Offer
We’re inviting both individuals and businesses to get in touch with us, even if you have been rejected recently for a car loan.
We offer:-
- Cheap Personal Car Loans: Secured and Unsecured
- Business Car Financing: Chattel Mortgage, Leasing, CHP, Novated Car Leasing
To discuss lending matters give us a call on 1300 000 003
DISCLAIMER: THIS INFORMATION HAS BEEN PROVIDED AS GENERAL MATERIAL FOR YOUR CONSIDERATION. INFORMATION IN REGARD TO GOVERNMENT POLICIES IS SOURCED FROM OFFICIAL AUSTRALIAN GOVERNMENT SOURCES. NO LIABILITY IS ACCEPTED FOR ERRORS IN PRESENTATION OR IN THE INTERPRETATION OF FACTS OR THE COMMENTARY AND ANALYSIS OF INFORMATION WHICH IS AVAILABLE IN THE PUBLIC DOMAIN. INDIVIDUALS ARE ADVISED TO CONSULT WITH THEIR FINANCIAL ADVISOR OR ACCOUNTANT FOR SPECIFIC ADVICE REGARDING THEIR INDIVIDUAL SITUATION.
