If you cannot meet a repayment on a car-secured loan, do not ignore the missed payment. A returned payment can lead to a fee, contact from the lender, a repayment discussion, continued arrears and, if the obligation remains unmet, possible repossession of the secured vehicle. This guide explains how the security works, what to do first and what information to prepare when asking for help. It is for Australian borrowers who are worried about a current or upcoming repayment. The clearest answer is to contact the lender promptly, explain your circumstances and request hardship assistance before the situation worsens.
Written by Justin C
With over 8 years of international experience in client service, operations, and leadership within the finance and technology sectors, Justin is passionate about creating meaningful client relationships and streamlining operations for optimal outcomes.
View author profileWhat Is What Happens If You Can't Repay a Car-Secured Loan? (Quick Definition)
This question concerns the steps and risks that may follow when a borrower misses a scheduled payment on finance secured by a vehicle. The lender has a security interest registered on the Personal Property Securities Register, while the borrower generally keeps possession and use of the car during the loan term. If repayment obligations remain unmet, the secured asset may eventually be repossessed.
This is a secured loan. If you fail to meet your repayment obligations, your secured asset may be repossessed.
What a Missed Payment Can Lead To
A dishonoured payment fee
A missed or returned scheduled payment may result in a $35 Dishonoured Payment Fee. This is separate from the repayment that remains overdue.
Contact from the lender
AutoSwift Finance may contact you about the missed payment. Use that conversation to explain what has changed and ask what assistance or revised arrangement may be available under the contract.
A possible reschedule fee
If a scheduled payment is rescheduled, a $25 Reschedule Fee may apply, subject to the contract. Ask for the revised arrangement and any cost in writing.
Default and repossession risk
Continued arrears may lead to default activity and possible repossession of the secured vehicle. The exact process depends on the contract and applicable Australian credit laws.
This is a secured loan. If you fail to meet your repayment obligations, your secured asset may be repossessed.
Quick Answer (Do This First)
- Contact AutoSwift Finance as soon as you think you may miss a repayment.
- Explain whether the difficulty is temporary or likely to continue.
- Ask about financial hardship assistance or a revised repayment arrangement.
- Do not ignore calls, emails or notices about arrears.
- Prepare your income, household expenses, liabilities and supporting documents.
- Do not take another loan to cover missed repayments on an existing credit facility.
- If the issue remains unresolved, consider contacting a free financial counsellor or AFCA.
For direct assistance, call 1300 894 686 or email cs@autoswift.com.au.
Prerequisites (What You Need)
- Your loan agreement and current repayment schedule
- Recent income information
- A list of household expenses and existing liabilities
- A clear explanation of the event causing financial difficulty
- An amount you can realistically afford to repay
- Supporting documents requested by the lender
- AutoSwift Finance contact details and your customer information
If you are still checking whether the vehicle meets the lender’s requirements, review this guide to vehicle requirements before making assumptions about your security.
Step-by-Step: Respond to a Car-Secured Loan Repayment Problem
Step 1: Check the missed payment and your contract
What to do: Confirm whether the payment was missed, returned or simply delayed. Read the repayment, dishonour and rescheduling terms in your agreement.
Success: You know the amount overdue, any applicable fee and the next date requiring action.
Common mistake: Do not assume one missed payment automatically means immediate repossession, but do not treat it as harmless either.
Step 2: Contact AutoSwift Finance promptly
What to do: Call 1300 894 686 or email cs@autoswift.com.au and explain that you are having difficulty meeting the repayment. Ask what hardship or repayment options may be available.
Success: Your circumstances are recorded and you understand the next action the lender requires.
Common mistake: Waiting for the account to become more seriously overdue can reduce the time available to discuss options.
Step 3: Prepare an honest hardship summary
What to do: Set out your current income, essential household costs, other liabilities, the reason for the difficulty and what you can realistically afford.
Success: The lender has practical information to assess your request rather than only a general statement that you cannot pay.
Common mistake: Do not promise a repayment amount that your budget cannot sustain.
Step 4: Discuss the available arrangement
What to do: Ask whether a revised repayment arrangement, rescheduling or another form of assistance can be considered under your contract. Record the agreed dates, amounts and fees.
Success: You have a clear written understanding of what happens next.
Common mistake: Do not rely on an informal phone discussion without checking the written confirmation.
Step 5: Escalate unresolved concerns
What to do: If your concern is not resolved, use the lender’s complaints process and consider AFCA. AutoSwift Finance lists AFCA membership number 87780.
Success: You have submitted the issue through a recognised complaint or external dispute process.
Common mistake: Do not ignore formal notices while waiting for a complaint outcome.
Step 6: Get independent budgeting support
What to do: If the problem involves wider debt or ongoing income pressure, speak with a free financial counsellor and contact other creditors about hardship support.
Success: You have a broader plan for essential costs and existing obligations, rather than relying on new credit.
Common mistake: Do not take another loan primarily to cover arrears or repayments on another credit facility.
If you want to understand the normal application journey before considering any future credit, read about the car-secured loan application process.
Validation Checklist (Make Sure It Worked)
- ☐ You confirmed whether the scheduled payment was missed or returned.
- ☐ You checked the relevant repayment and fee terms in the contract.
- ☐ You contacted AutoSwift Finance promptly.
- ☐ You explained the cause of the financial difficulty.
- ☐ You prepared income, expenses and liability information.
- ☐ You know whether a revised arrangement or hardship assessment is being considered.
- ☐ You recorded any agreed repayment dates and amounts.
- ☐ You know how to escalate an unresolved complaint.
Borrowers who are still assessing whether they meet general criteria can review an eligibility and repayment guide, but any application remains subject to credit assessment and eligibility criteria.
Common Issues & Fixes
| Problem | Cause | Fix |
|---|---|---|
| Payment was returned | Insufficient funds or a banking issue | Contact the lender, confirm the overdue amount and ask how to bring the account up to date. |
| Income has changed | Reduced hours, job change or another income event | Provide current income details and request a financial hardship assessment promptly. |
| Unexpected medical or emergency cost | Essential expense has displaced the repayment | Explain the expense, provide supporting documents if requested and discuss what you can afford. |
| You cannot agree on a solution | The matter remains unresolved after contacting the lender | Use the complaints process and consider AFCA, while continuing to respond to formal notices. |
| You are considering another loan | Pressure to cover existing arrears | Contact current creditors and a free financial counsellor instead of adding new debt. |
Best Practices (Do It Right Long-Term)
- Contact the lender before the due date where possible, because early communication gives more time to consider assistance.
- Keep a written record of calls and agreements, because dates and amounts can be easy to misunderstand later.
- Review your budget regularly, because a realistic repayment plan must account for essential household costs.
- Do not ignore formal notices, because unresolved arrears can progress beyond the original missed payment.
- Ask for written confirmation of any reschedule, because a changed arrangement should be clear to both sides.
- Consider free financial counselling for wider debt pressure, because one missed payment may be part of a larger problem.
- Request an accurate payout figure before early repayment, because the final amount depends on the contract and account position.
A fixed 12 month repayment term, fixed interest rate and scheduled repayment frequency should be checked against the agreement rather than assumed. If you are comparing repayment structures, read this overview of repayment options.
Recommended Tool (Optional): AutoSwift Finance
AutoSwift Finance publishes information about its EquiMax Loan and provides direct channels for borrowers who are having repayment difficulty.
- Contact the lender directly by phone on 1300 894 686.
- Email cs@autoswift.com.au with details of the difficulty.
- Review the dedicated financial hardship information.
- Use the contact page for general enquiries.
- Review the contract before agreeing to a reschedule or repayment change.
Use it when you need product or account information from AutoSwift Finance. Do not rely on a lender’s information page as a substitute for independent financial counselling when you have wider debt concerns.
All applications are subject to credit assessment and eligibility criteria. AutoSwift Finance is operated by Koala Enterprises Pty Ltd (Australian Credit Licence 537359).
FAQs
What happens after one missed car-secured loan repayment?
A missed or returned payment may result in a $35 Dishonoured Payment Fee and contact from AutoSwift Finance. You may be able to discuss repayment assistance or a revised arrangement, subject to the contract. If arrears continue, default activity and possible repossession of the secured vehicle may follow.
Can I keep driving the car after missing a payment?
AutoSwift Finance states that borrowers retain full use and possession of the vehicle throughout the loan term while meeting the loan requirements. However, the loan remains secured and the vehicle may be repossessed if repayment obligations remain unmet. Contact the lender rather than assuming continued use will last indefinitely.
What should I provide for a hardship request?
Be ready to explain your current income, household expenses, existing liabilities and the reason you are experiencing difficulty. You should also state what repayment amount you can realistically afford. Supporting documents may be requested so the lender can assess your circumstances.
Can I reschedule a repayment?
A revised repayment arrangement may be discussed with AutoSwift Finance, subject to the loan contract and assessment of your circumstances. A $25 Reschedule Fee may apply where a scheduled payment is rescheduled. Ask for the new dates, amounts and any applicable fee in writing.
What is a car-secured loan?
A car-secured loan is credit backed by a security interest in an approved vehicle or asset. With the EquiMax Loan, AutoSwift Finance registers a security interest on the Personal Property Securities Register while the borrower keeps use and possession of the vehicle during the loan term. If repayment obligations are not met, the secured asset may eventually be repossessed.
For information about receiving funds after an approved application, see the funding timeline. Processing and funding depend on requirements being met and the relevant payment method.
A missed repayment should be treated as a problem to address, not something to hide. Check your contract, contact AutoSwift Finance early, provide an honest summary of your finances and ask about hardship support. If the difficulty extends beyond this loan, speak with a free financial counsellor and your other creditors. You can also review the lender’s hardship information before making contact.