With floods affecting large areas of eastern Australia, those affected will be seeking assistance and support in many ways. Dealing with the clean-up as waters recede will be a top priority as will seeking immediate financial assistance. This can be sourced through NSW and Victorian State Governments and the PM has also announced flood relief measures.
Next will likely be replacing essential goods and property which have been damaged so those impacted can restore their lives and livelihoods. Some may need temporary accommodation while repairs to property are carried out. Assistance in this regard should be sought through government channels and community support and charity organisations.
While these practical matters need to be dealt with as a matter of urgency, there are issues around finance and loans which should also be attended to in many instances.
To assist caravan owners with vehicles under finance, who have been affected by floods, Jade Caravan Finance provides a step-by-step guide to actions required. Finance matters can be a major source of stress and worry. We hope this information and the support of our consultants will provide assistance to those affected.
Meeting Finance Obligations
Where RV owners have vehicles under finance, it is important to be aware of the obligations around the loan. Even if the caravan has been written-off completely, there is a responsibility on the part of the loan holder to continue to meet the caravan finance repayments.
The outcomes of not making the necessary repayments can be long-term and quite serious. With a Secured Caravan Loan, the lender holds a right over the vehicle as security against the loan. When finance repayments are not met according to the schedule, the loan may be deemed in default and the lender proceed with repossessing the vehicle.
While having a written-off caravan repossessed may appear unimportant, the consequences in the long term can be extremely important. When a loan is deemed ‘in default’, the lender will place a negative entry on the borrower’s credit report. This can negatively affect loan offers including interest rates on future finance applications.
For those affected by floods that are having difficulty meeting loan repayments, contact should be made immediately with the lender. Relief with repayments where the individual’s financial situation has been affected by floods will based on individual bank and lender guidelines. Typically, when disasters such as floods occur, most lenders will have processes in place to assist customers.
These relief measures will vary and will be at the discretion of the lender.
Caravans Written-off and Damaged by Floods
A condition of Secured Caravan Loans is that insurance over the goods is required by the lenders. Where a caravan that is currently under finance has been seriously damaged or written-off as a result of floods, the actions and considerations to be taken by the owner include:-
- Contact the insurance company and commence the claim lodgement process.
- To avoid long waits on the phone, consider an online claim.
- Insurers will advise policy holders of their individual processing procedures.
- Continue to meet caravan loan repayments even after the insurance claim has been made.
- Contact the lender to advise the claim lodgement and discuss any relief in regard to pausing repayments.
- With the lender holding security over the caravan, the will be due a payout from the insurer for the outstanding amount on the finance or the insured value of the goods.
- Any excess over and above what is due to the lender is paid to the policy holder.
- Caravan owners do not have to wait until claim settlement to commence the purchase with finance of a new RV.
- A loan application for the new caravan may be made at any time.
- As the existing loan commitment will still appear on the personal financials until insurance settlement, this needs to be explained to the new lender to avoid it negatively affecting the loan offer. Your Jade consultant will handle that and the other negotiations with the lender to source a finance quote.
- The new caravan loan can be with the same or with a different lender. We will source the cheapest quote from across our lender base.
- The interest rate on the new caravan finance will reflect current caravan loan interest rates which may be different from the rate achieved on the existing loan.
- To expedite purchasing a replacement RV, a pre-approved caravan loan can be applied for.
Fast Loan Approvals for Temporary Accommodation RVs
With houses severely damages, many home owners may consider purchasing a caravan as temporary accommodation while the house is being repaired. With demand already high for caravans, being ready to order with finance arranged, may expedite delivery. We can assist in this regard with fast finance approvals and by handling the entire loan process for applicants.
We fully appreciate how floods and other natural disasters cause distress for many people. Our team is ready to assist where required to support individuals and businesses.
Contact Jade Caravan Finance on 1300 000 003 to discuss issues around caravans damaged by 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.