Our client is a bookkeeper business owner who worked from a home office. Having a car was vital to being able to visit clients and business development.
When she reached out to us, her car had just broken down. She went to a Honda dealership and secured a very competitive deal on a demo Honda Civic with a service/warranty package. The condition was that she had to take delivery before 31 December. She required vehicle finance to be arranged within a very short timeframe and before the Christmas cut-off deadline.
She was a property owner and previously had asset finance.
The challenge in this deal was in the following respects:
The challenge didn’t stop us from pursuing to find a solution for our client.
The car had negative equity which means most lenders would require full documentation. This would take too long given the imminent Christmas shutdown and delivery deadline of 31 December so we had to find a lo doc solution.
We immediately picked up the file as priority and workshopped it with our lender panel. Several lenders were either unable to deliver on time, or consider lo doc, or both.
However we made a special request to her current lender Pepper who agreed to finance the new car and the negative equity from the existing car with an affordability declaration only – this is where the client (her business) simply declares it can afford the loan, there is no income verification in the form of financial statements involved.
Fortunately the client was able to take delivery of her car on 31 December.
All of this was managed by our broker whilst she was travelling overseas!