It is extremely saddening that only a short time after issuing information for flood victims in NSW and Victoria we once again have the need to provide information to assist victims in other areas. The Central West NSW floods are impacting vast areas of the state and having devastating effects on homes, businesses, livelihoods and lives. As victims address a myriad of issues, we assist with information on what do about commitments in regard to loans and finance. In particular for those with caravans that are currently under finance and have been written off as a result of the floods.
Victims of the central west NSW floods with caravans under finance should contact insurers and lenders to advise the circumstances and/or seek repayment relief. We outline the steps to be taken in detail and what assistance we can provide for those needing to purchase a new caravan as a matter of urgency, particularly for temporary housing purposes.
Immediate Action
Caravans under finance refer to all types of RVs that have been bought with a loan and that loan is still current. In other words, repayments are still being made. When taking out secured finance, buyers will be required to take out comprehensive insurance. So when the RV is damaged or written off, it should be covered by insurance.
- A claim should be filed with the insurance company either online or over the phone. If that can’t be done immediately due to circumstances, take photos.
- If you don’t have access to the paperwork and do not have the insurance policy details, don’t worry. The insurer should have all the information required to assist with the claim.
- It is important to note that the loan repayments are still due, even when a caravan is written off or damaged due to a flood or other events.
- While this may seem a trivial matter in the current situation is it important to address. Failure to meet those loan repayments can result in the loan being classified in default and that can affect the credit score and future loan prospects.
- The lender should be contacted and advised that an insurance claim has been filed. Individual lenders will have their own policies in this regard and will advise accordingly. Most banks and lenders readily provide assistance to customers during floods, bushfires and other emergency scenarios. So don’t be afraid to contact them and discuss the situation.
- If the caravan has not been damaged, but your income and hence ability to make loan repayments has been, once again, contact the lender to discuss repayment relief.
- Financial assistance for flood victims is available through Services Australia and Service NSW.
Replacing Damaged Caravans Under Finance
Owners wishing to quickly replace caravans that have been written-off in the floods do not have to wait until the insurance claim is settled before proceeding to apply for secure caravan finance and purchase a new RV. That process can commence at any time. When engaging with Jade Caravan Finance to source the finance, we will advise our lenders re the scenario around the existing loan on the damaged caravan so it does not impact the application assessment and rate offer. This can be important because that existing loan will appear on the individual’s credit history and may influence lenders’ assessment of the applicant’s ability to furnish further finance.
The finance on the replacement caravan will be a totally new loan contract and may be taken out with a different or the same lender. The caravan financing interest rates on the new finance will be based on current rates and not the rate which applied to the existing loan on the damaged RV.
For those needing a caravan for temporary housing while their business or home is being repaired or rebuilt, we can expedite the finance application with fast approvals and we handle the paperwork in addition to sourcing the finance. Pre-approved finance can be applied for so the loan is all set-up and approved so buyers can easily proceed to source the caravan and make the purchase.
We fully understand and appreciate the distress that floods can cause and we are available to ease whatever stress we can within the scope of our operations.
Alert: Impacts on Travel Plans
Many caravan owners will be planning upcoming trips for the Christmas holiday season. Authorities warn travellers to reconsider any travel through central and western NSW at this time and possibly for many weeks. The damage to roads and infrastructure is yet to be assessed but is expected to be massive. Many roads may be impassable for up to months.
The Bureau of Meteorology also warned that although the rain has stopped or eased in many areas, the risk of flooding remains and could remain for months. Travellers are urged to stay across all warnings and alerts and closely monitor the situation in their destination areas or change plans.
Contact Jade Caravan Finance on 1300 000 003 for assistance in replacing caravans damaged in the Central West NSW floods.
DISCLAIMER: THE DETAILS AND INFORMATION IN THIS CONTENT ARE PREPARED AND PRESENTED PURELY FOR INFORMATION AND NOT INTENDED IN ANY WAY AS THE SOLE SOURCE OF FINANCIAL ADVICE FOR CARAVAN PURCHASING. IF ADDITIONAL FINANCIAL ADVICE IS REQUIRED, READERS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY ERRORS, PRODUCT DESCRIPTION VARIATIONS, OR OTHER MISREPRESENTATIONS OF INFORMATION AS PRESENTED.
