Lockdown: What Does It Mean For Finance Deals?
Whilst car dealers have closed their doors during lockdown, finance payments still need to be made. Here’s everything you need to know about how coronavirus is affecting finance deals…
Lockdown And Finance Deals
The national lockdown has effectively put life on hold for millions of people. For motorists, their cars are sat idle on driveways (except for when making small, essential journeys) and MOTs have been suspended for six months. But what about finance deals? Whilst car dealerships and garages across the country are closed, finance deals aren’t. Payments are still expected and fixed term dates are still getting closer and closer. For some drivers, this can be a serious cause for concern.
Under normal circumstances, customers with PCP (personal contract purchase) deals would put any ‘equity’ built up during it towards a deposit for a new car and deal. However, with dealerships being closed this is either difficult or, frankly, impossible. What, then, should drivers do?
Dealing With Closed Dealerships
If your dealership is closed, you don’t need to pay the balloon on the deal unless you agreed / decided to before the lockdown was implemented. You should get in touch with them at as soon as you’re able and explain your preferences. Given the unique circumstances of the situation, they should have a plan to address changed circumstances. In addition, you’re perfectly within your rights to ask for an extension on your finance deal or lease. Whether it’ll be granted, however, is down to each dealer. Leasing.com has stated that many providers are open to extensions; whether they’re formal and fixed or informal and rolling.
But what about payments on finance deals and leasing agreements? Millions of people will undoubtedly be facing financial hardships during the course of the nation’s lockdown. It’s only to be expected, then, that many will struggle to keep up with payments on their cars. The Finance and Leasing Association has advised drivers to contact their finance lenders as soon as possible, as assistance may be available. In addition, the ‘Coronavirus Business Interruption Loan Scheme is providing loans of up to £1.2m to SMEs. These include some non-bank finance lenders which means, potentially, your finance provider may have access to funds to help support them through the crisis. That means they may be able to be more lenient or flexible.
In any case, it’s important to contact your lender and dealership as soon as possible. Make your circumstances known and see what their perspective is. It’s likely that, given these unprecedented circumstances, they’ll be just as eager to negotiate a deal as you are.
Car Salesmen Techniques And How To Deal With Them – https://autoserve.co.uk/motoring-news/car-salesmen-techniques-and-how-to-deal-with-them/
Selling Your Car? Here’s How To Do It Quickly And For A Good Price – https://autoserveclub.co.uk/blog/selling-your-car-heres-how-to-do-it-quickly-and-for-a-good-price/
