The flood crisis that is currently being experienced in many areas of Australia is devastating and affecting many individuals, businesses and property. We appreciate that those in flood areas have a lot on their plate with priorities being shoring up levees, cleaning up damaged homes and businesses and sorting out the next move. But amidst the priorities of the flood crisis, there are matters in regard to motorcycle finance including obligations around loan commitments to be noted.
We provide information on these matters for a number of scenarios around motorbikes under finance and how owners and loan applicants should proceed.
To source immediate assistance, anyone affected by the flood situation should reach out to their state government and/or federal support packages.
Owner Information for Motorbikes Under Finance
For owners of motorcycles that are currently ‘under finance’ meaning the loan is still current, there may be issues to consider – if the machine is written-off or if the individuals income circumstances have been changed and repayment relief is required.
Where motorcycles are written off – they may have been in sheds on a property, in garages of flooded homes or a number of other circumstances, there are actions that can be taken to assist.
- Secured Motorcycle Loans include the condition that insurance must be arranged and continued over the loan term.
- Owners should contact their insurer as their insurer as a matter of urgency and lodge a claim.
- Expect phone lines to be busy and consider an online claim service where available.
- Policies may vary and you may need to check that yours does include flood insurance.
- The insurer will advise their process for assessing and approving claims.
- Under secured loans, the lender accepts the motorcycle as security and as such holds a financial interest in the machine.
- Contact the lender to advise of the situation and discuss their individual process for handling these situations.
- Just because a claim has been made, it does not mean that motorbike loan repayments can be overlooked. Borrowers are obligated to meet motorbike finance repayments unless an arrangement is made with the lender. Failure to do so can result in a negative report on the credit profile and if multiple payments are missed, the loan can be considered in default. These actions can result in the credit score being seriously downgraded. That can then result in issues when new credit and loans are applied for.
- The insurer should pay the relevant amount due to the lender and any balance to the insured party. The insurance coverage should be in line with the value, agreed or otherwise, of the motorcycle and cover the outstanding loan. But variations may occur and the situation should be confirmed with discussions with the lender and insurer.
- If a replacement bike is required quickly, it is not essential to hold off applying for a new motorcycle loan until after the claim is settled. We can assist by expediting a new loan application to ensure quick replacement of the goods.
Another flood-related scenario is those that need temporary relief in regard to motorcycle loan payments. Floods can mean many businesses are shut down and some individuals may have their income disrupted. In these circumstances, contact the bank or the lender that has the loan as a matter of urgency.
Most have processes in place to deal with the situations. As mentioned above, simply letting the payment schedule slide without contacting the lender can have long-term negative outcomes.
Loans Currently being Processed
Where a motorbike loan application is currently being processed by Jade Bike Loans, that process will proceed unless we are contacted to request a halt or pause. Where the flood situation has changed an individual’s income prospects which are different from those in the application, contact should be made with the Jade consultant.
The Jade consultant will listen to the situation and advise what measures can be taken. That may include holding off on processing the application until the income level is restored or details on the application may need to be amended.
Finance to Replace Flood-damaged Motorbikes
Whether it’s the primary form of transport, an essential vehicle for operating a property or a favourite recreational motorcycle, when a machine is written off the need to replace it can be a priority. As mentioned above, it’s not essential wait until the whole insurance situation on the current machine is finalised before replacing the bike. But there are some aspects of the loan application process where our assistance may be extremely beneficial.
When completing a motorbike loan application, details need to be included around existing loans and other financial commitments. Until such time as the insurance claim is settled and the lender releases the security on the current bike, that commitment will appear on the credit report.
This may give the impression that the applicant is not in a position to furnish a further loan. As part of our service, our consultants can assist by explaining the situation to the lenders when sourcing new finance quotes. This can be an important factor as it may impact the interest rate and conditions offered on the new loan.
The loan to purchase the replacement motorcycle would be quoted at the current interest rates and the application assessed on the current circumstances. These may differ from those in the loan that was secured to purchase the now damaged motorbike.
This information may relate to all types of motorbikes which have been purchased with finance. While there are many issues to be dealt with for those impacted by floods, existing finance commitments should be included.
For further information or to answer questions, please feel free to contact us.
For fast application approvals for finance to replace flood-damaged motorbikes contact Jade Bike Loans at 1300 000 003
DISCLAIMER: IN REGARD TO ANY ERRORS OR MISREPRESENTATIONS IN THIS MATERIAL, NO LIABILITY IS ACCEPTED. THE DETAILS, CONTENT AND DATA IS PRESENTED PURELY FOR GENERAL INFORMATIONAL PURPOSES FOR MOTORBIKE BUYERS AND THOSE SEEKING MOTORCYCLE LOANS. THIS IS NOT INTENDED AS THE SOLE SOURCE OF INFORMATION FOR FINANCIAL DECISIONS. IF SPECIFIC ADVICE IS REQUIRED AROUND FINANCIAL DECISIONS, READERS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
