The devastating floods across Queensland and parts of NSW have resulted in thousands of people losing many goods and businesses losing machinery and equipment. Many of these items will have loans and finance currently in place. In an earlier post we covered the assistance which has been offered by the banks and other sources to assist those in need. For those that are looking to replace flood damaged goods under finance this FAQ-style guide should provide answers to many queries on how to proceed.
This is a general question-answer format guide which applies to the finance categories that we provide loans for. Specifically, we’re talking replacing cars, motor vehicles, work vehicles, motorcycles, caravans, trucks, machinery and a wide range of business equipment.
We handle all loan applications on an individual basis so there can be exceptions and variations. If you have questions about your particular circumstances in regard to sourcing finance to replace your goods, please reach out to our Jade Finance consultants.
Finding lost goods.
Many boats were washed off their moorings and will be somewhere. The same for cars and even caravans which were washed away. Contact the local rescue and recovery services and local social media pages to see if your goods have been found. For Queenslander boat owners, Marine Safety Queensland has a reunite service. Email the details of your boat brisbaneICC@tmr.gov.au
Who should I contact when my lost goods were under finance?
If the lost or damaged goods are under finance, which means you have a loan or finance which is still current, you need to contact the insurer and the lender. The insurer will handle the insurance claim but the lender should be advised of what is happening. They may pause the repayments depending on individual circumstances. If not, you are still obligated to make the loan payments.
My loan documents were also lost in floods.
Many houses were completely flooded and paperwork such as loan contracts and insurance policies will have been lost. Contact the insurer and lender and they can advise how to proceed as they will have your details.
What do I do with the loan repayments?
If goods under finance are destroyed, lost or damaged beyond repair, the loan holder is still required to meet the loan repayments schedule, unless other arrangements are put in place. The insurer will process the claim and that will include paying out the monies owed to the lender. The insurance policy should be for an amount which will cover the finance payout. The lender will have recorded on the PPSR the security over the loan. But due to the large number of claims, this may take some time. You need to continue to meet the loan repayments until the claim is sorted. If your income has been affected by the floods and you are unable to make the repayments, contact the lender to discuss your individual situation.
Can the goods be replaced before insurance claim is finalised?
Yes. If you are in a position to do so, you can proceed with the purchase of a new car, boat, bike, caravan, truck or equipment while the insurer finalises and pays out your claim on the damaged goods. Contact Jade Finance to commence a new loan application. If you plan to utilise what monies you may recoup from insurance, over and above what is used to pay out the existing loan, on the new goods, you may do this with some loans after. With our Secured Loans for personal goods, additional payments can be made on the loan.
Can I lodge a new loan application before the claim on insurance is finalised?
Yes. Our Jade Finance consultants will handle both personal loan and business finance applications. By advising the lender of your current loan that the goods now have an insurance claim lodged, we can also advise our lender of that situation when sourcing you a quote for the finance to purchase the replacement goods.
I need replacement vehicles and equipment asap for my business. How fast can finance be arranged?
Jade Finance responds promptly to requests for finance quotes and with our industry-level access to a large number of lenders we are ideally positioned to act quickly for quick quote and fast approvals to streamline and speed-up the process.
Will my credit profile be affected by having to claim insurance for goods under finance?
The credit rating should not be impacted by insurance claims for goods lost in floods. But it is important that the lender be advised of the situation and if required, assistance with pausing repayments be requested. Lodging an insurance claim does not remove the loan commitment. If loan repayments are not made and the lender has not been advised of the circumstances, then they may report negatively to reporting agencies which may affect the credit rating.
Will the interest rate on my loan for the replacement goods be the same as for the finance on the lost goods?
Jade Finance provides finance at the current interest rates. Our lenders conduct risk assessments on individual applications when preparing the interest rate they will offer on the loan. The RBA has reduced the cash rate to historic lows. If your current loan was taken out prior to 2020 then the current interest rate may be lower than your existing loan. For our current interest rates on the goods and loans you are considering, refer to our Interest Rate Comparison Guides.
I’m dealing with a lot of issues due to the flood situation. How can you save me the time to source the finance I require?
Jade Finance consultants handle the complete finance process on behalf of our customers. Simply give us a call, brief one of our consultants, provide the required information and the consultant will proceed to source the cheapest loan quote from across our vast lender panel. We save you a lot of time and a lot hassle so you can focus on many of the other issues you are currently facing.
Hopefully this general overview will answers many of the questions or concerns that you have around how to replace flood damaged goods under finance. To get started with your loan application, please contact us at Jade Finance.
Contact Jade Finance 1300 000 008 for finance to replace flood damaged goods.
DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.