For many people, the coronavirus crisis threw their personal plans for purchasing a new car, boat, caravan or motorbike into limbo. We are aware that conditions around the finance sector especially in the March to May period resulted in some consumers having the loan applications rejected.
An article published in mainstream media recently highlighted the issues faced by some consumers seeking finance, specifically in the case of the article, car buyers. It related the story of some car dealers who were losing sales as their buyers had their car loan applications declined due to the tightened restrictions imposed by lenders due to COVID-19. Buyers, that in the opinion of the dealers, presented as credit-worthy applicants.
This has prompted our call-out to those who applied for car, boat, caravan or motorcycle loan say with a bank or finance company directly during the early part of this year and were rejected to contact Jade Finance to discuss the possibility of a ‘second chance’ loan.
Jade Finance has been in the finance broking business for a long time so we fully understand the feelings of both buyers and sellers in this instance. But we are also fully aware and across the circumstances that can lead to such as situation and we elaborate, explain and highlight a number of points to provide you a better understanding.
- Car, boat and bike dealers are usually highly experienced and are dealing with buyers seeking loans on a weekly basis. We appreciate that they do understand how the system works and what lenders are usually looking for when approving loans. However, we respect them greatly but it is not their role to provide an assessment of an applicant for a loan. That is the duty and responsibility of the credit licensee.
- We draw your attention to another of our articles where we detailed the role of both finance brokers such as Jade Finance and other lenders including banks, under the National Consumer Credit Protection Act. All licensees must adhere to the strict Responsible Lending Guidelines and Obligations as set out by ASIC and as legislated under the law. Under the law, lenders are not permitted to offer a loan to a person if that loan is unsuitable for the person.
- As we mentioned in several earlier blogs, some banks and lenders did tighten their lending guidelines during the early stages of the coronavirus pandemic. When you consider the circumstances the banks were facing, this is quite understandable. In a very short timeframe they were hit hard with an enormous number of requests for loan deferrals as businesses were forced to close and staff stood down, laid off or had their employment terminated.
- With the economic outlook uncertain, the status of JobKeeper presented a completely new employment status to grasp and lenders reacted with caution.
- As the situation played out and stabilised to an extent, lenders resumed more of a ‘business as usual’ level of operations.
If you missed out on a loan earlier this week, your plans may still be a possibility with the assistance of Jade Finance.
How can Jade Finance assist you?
- On the basis of what we have stated above, you may prompted to simply contact the same bank and re-apply for the same loan. However, it is a better option to use the services Jade Finance as your finance broker to handle the loan on your behalf.
- When individuals make multiple loan applications directly, it can impact negatively on their credit profile. When the process is handled by a licensed professional finance broker, it does not impact an individual’s credit profile.
- During the COVID-19 period, most borrowers preferred to approach the major big 4 banks for their loans and finance requirements. Jade Finance has far more choices beyond the major banks. Yes we are accredited with all major Australian banks but we also have a lot more lending sources. With more choices we are presented with more chances to source you a second chance loan.
- Our services as a finance broker are available to individuals for all types of loans – cars, boats, motorbikes and caravans.
- As professional brokers we know the guidelines imposed by individual lenders so we know which one to approach to source the best deal for individual requirements and to suit your individual application.
- We write a lot of business with many lenders and that gives us the bargaining power to negotiate better interest rates for our customers. By better rates we mean, lower rates!
Taking a Second Chance
If you’re still wanting to buy that boat, car, caravan or bike, the timing could be ideal for you to contact us and get moving on sourcing your loan. And in some ways, the timing may play into your hands as you may find great EOFY bargains and more clearance sales towards the latter part of the year.
We can offer both secured and unsecured loans for personal consumer purchases at our better interest rates with fixed terms and fixed repayments.
Everyone deserves a second chance. Make yours happen with a confidential and obligation-free call to Jade Finance to discuss your situation with one of our consultants.
For second chance consumer loans contact Jade Finance Call 1300 000 008
DISCLAIMER:THIS INFORMATION HAS BEEN PROVIDE 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.
