Life can change suddenly, and sometimes those changes are deeply personal and difficult. At Angle Auto Finance, we understand that financial hardship doesn’t always come from predictable events like job loss or illness. For some customers, hardship arises from situations that affect their safety and wellbeing.
This case study shares the story of Emily*, a medical receptionist from Rockingham, Western Australia. Emily’s journey shows how we work with customers compassionately, providing practical solutions when they need support the most.
Meet Emily
Emily worked as a medical receptionist and lived with her boyfriend. Over time, their relationship broke down, and she found herself in an unsafe domestic situation. With the help of a domestic violence organisation, Emily made the brave decision to leave and start fresh in a new home.
While this move was essential for her safety, it came with significant costs. Setting up a new household meant paying for rent, furniture, and everyday essentials. On top of that, Emily had a car loan to manage:
- Customer: Emily
- Car: 2022 Toyota Camry
- Monthly repayments: $730
- Outstanding balance: $22,000
With her finances stretched thin, Emily struggled to keep up with her $730 monthly repayments. She needed a solution that would ease her financial burden while she settled into new accommodation.
Understanding Financial Hardship
Financial hardship occurs when unexpected events make it difficult to meet your financial commitments. While many people associate hardship with job loss or illness, it can also result from personal crises such as domestic violence.
FAQ: What counts as financial hardship?
Hardship can arise from a wide range of circumstances, including:
- Job loss or reduced income
- Illness or injury
- Relationship breakdown
- Domestic violence or unsafe living situations
- Natural disasters or emergencies
If these events affect your ability to make repayments, you may be eligible for hardship support.
At Angle Auto Finance, we treat hardship cases with empathy and flexibility. We know that every customer’s situation is unique, and we tailor solutions to suit individual needs.
Our dedicated Financial Hardship page (see here) explains the process in detail, including how to apply and what information you’ll need to provide.
Emily’s options
When Emily contacted us, we discussed several possible pathways:
- Deferring repayments — pausing payments temporarily to give her breathing space.
- Restructuring the loan — adjusting the loan term to reduce monthly repayments.
- Selling the vehicle — using the proceeds to reduce or clear the loan balance.
Given her circumstances, selling the car was the most practical option. Emily needed immediate relief from her repayments, and she didn’t feel comfortable managing a private sale herself.
Selling the car safely
Emily’s safety was our priority. Since she didn’t want to handle a private sale, we arranged for her to return the car to the nearest auction house so that they could assist with the sale of the vehicle. This made the process simpler.
- Outstanding loan balance: $22,000
- Auction sale price: $17,000 (after sales costs)
- Shortfall: $5,000
FAQ: What is a payout shortfall?
A payout shortfall occurs when the amount you receive from selling your car is less than the remaining balance on your loan. In Emily’s case, the shortfall was $5,000.
How we helped
After the auction sale, Emily was left with a $5,000 shortfall. Rather than demand immediate payment, we worked with her to create a manageable repayment plan. Emily now pays $200 per month, giving her the time she needs to reestablish herself in her new home.
FAQ: Will interest still apply after selling the car?
Yes. Interest continues to accrue on any remaining loan balance until it is fully repaid. Emily’s $5,000 shortfall is subject to interest, but her repayment plan ensures she can manage it comfortably.
The outcome
Emily’s case shows that even in difficult circumstances, there are solutions. By selling her car through a safe and supported process, she:
- Reduced her $22,000 loan balance significantly.
- Avoided defaulting on her repayments.
- Secured a repayment plan that fits her current financial situation.
- Freed herself to focus on rebuilding her life in a safe environment.
Most importantly, Emily regained peace of mind. She no longer worries about unmanageable repayments and can concentrate on her wellbeing and future.
Lessons from Emily’s Story
Emily’s experience highlights several important points for anyone facing financial hardship:
- Safety comes first. If you’re in an unsafe situation, prioritise your wellbeing.
- Act early. The sooner you contact your lender, the more options you’ll have.
- Be honest. Sharing your situation helps us tailor solutions to your needs.
- Know your options. Repayment deferrals, loan restructuring, and vehicle sales are all possible pathways.
- Understand shortfalls. If you sell your car, you may still owe money if the sale price doesn’t cover the loan balance.
- Plan for interest. Remaining balances will continue to accrue interest until repaid.
FAQs about Financial Hardship
Q: How do I apply for hardship assistance?
You can apply online through our hardship application form or call us directly at 1300 561 869. We’ll guide you through the process and ask for details about your situation.
Q: Will applying for hardship affect my credit score or credit history?
Requesting hardship assistance or entering into a hardship arrangement will not affect your credit score. In fact, it can help you avoid missed repayments that would otherwise harm your credit score. However, your credit history will show that you have entered a financial hardship arrangement, and your credit score will be affected by any reported missed repayments (both under and outside of an agreed arrangement). By working with us, you can protect your credit history while managing your loan responsibly.
Q: Can I sell my car if it’s under finance?
Yes. You can sell your car privately or through a dealer, but if you don’t feel confident doing so, we can arrange for the vehicle to be sold at auction. The buyer’s payment must go directly to your loan account. Once the balance is cleared, we release the security interest.
Q: What if I can’t cover the shortfall?
We can work with you to set up a repayment plan for any shortfall, enabling you to pay the remaining balance in smaller, manageable instalments.
Q: What documents do I need to apply?
In most cases, we can finalise your request using the information you provide on the web form or over the phone. After assessing your personal circumstances, we may occasionally ask for evidence of hardship — such as insurance claim documents, medical certificates or proof of reduced income — just to make sure we fully understand your situation and can support you appropriately.
How Angle Auto Finance supports customers
At Angle Auto Finance, we believe in practical solutions and compassionate support. Every hardship case is unique, and we tailor our approach to suit each customer’s circumstances.
Our commitment includes:
- Flexible repayment options
- Clear communication
- Safe processes for vehicle sales
- Support for shortfall repayment plans
- Guidance through the PPSR release process
A clear path forward
Emily’s story is just one example of how we help customers navigate financial hardship. While her relationship breakdown created enormous challenges, it didn’t have to derail her financial future. By working together, we found a solution that reduced stress and gave her a clear path forward.
If you’re facing financial hardship, don’t wait until repayments become overwhelming. Reach out to us today. Whether it’s restructuring your loan, deferring repayments, or selling your car safely, we’ll find the right solution for your situation.
Contact us
Call us at 1300 561 869 or apply online to start the process.
Extra support is just a call away
There’s always a way forward. If you need help managing your finances, give the National Debt Helpline a call (1800 007 007) and connect with a Financial Counsellor who can guide you through it.
Important information:
* Name and personal details changed to protect the customer’s confidentiality.
