Like many lenders, vehicle finance companies are helping customers who are experiencing financial difficulty because of the current COVID-19 crisis.
From 24 April 2020, customers who are financially impacted by COVID-19 can choose to defer payments on their finance agreement for up to three months. New temporary rules also mean that vehicle finance companies cannot terminate an agreement or repossess a vehicle where COVID-19 is the cause of financial difficulty.
That is not to say that all vehicle finance agreements are currently ‘on hold’. If COVID-19 is not the cause of financial difficulty – if a customer had already defaulted on their agreement before lockdown measures came into place, for instance – vehicle finance companies can still terminate an agreement and repossess a vehicle.
However, it is hoped that the option to defer repayments for three months will provide much-needed relief to those directly impacted by this dreadful virus and give them one less thing to worry about during these difficult times.
If you are struggling with vehicle finance repayments because of COVID-19, or you are worried that you may struggle in the future, contact your vehicle finance company immediately. They are keen to help and can explain the options available to you in full. You will find their contact details in your finance agreement.
Our Help & Advice page also has a list of organisations who provide free and impartial advice if you have money worries or are struggling with debt.