Falling behind on your car loan repayments is a horrible feeling. The letters start, the direct debit bounces, and the stress over your car loan repayments sits in your chest every time you think about it. If that is where you are right now, take a breath. You are not the first person this has happened to, and you are certainly not alone. In the 2024 to 2025 financial year there were more than 280,000 hardship notices lodged across Australia.
Here is the most important thing to know: you have more rights and more options than you probably realise, and the sooner you act, the more of them you keep. This guide walks through seven ways to get help with your car loan repayments, in plain English, without judgement. The worst thing you can do is nothing.
Don’t wait until you miss a payment
The single biggest mistake people make is staying quiet and hoping it sorts itself out. It rarely does. Every week you wait, options quietly close. Your lender would far rather hear from you early than chase you later, and as Moneysmart puts it, the earlier you seek help, the more options you will have. So if you can already see your car loan repayments becoming a struggle, act now, before a missed payment turns into a default.
7 ways to get help with your car loan repayments
Whether you are one car loan repayment behind or bracing for the ones ahead, these are the real, practical avenues open to you.
1. Talk to your lender straight away
It feels daunting, but this is the first and most important step. Call your lender’s hardship team and tell them you are having trouble with your car loan repayments. They will not ask for your life story. Typically they just want to know why you are seeking help, your income and main expenses, and what you can realistically afford. Asking is not a black mark. It is exactly what the process exists for.
2. Ask for a hardship variation, it is your right
This is the part most people do not know. Under Australian credit law, when you ask for help your lender must consider you for hardship assistance. According to Moneysmart, your lender must write to you within 21 days to let you know the outcome. This is not a favour they are doing you. It is a legal obligation, and you are entitled to ask.
3. Get free financial counselling
You do not have to face this alone or work it out yourself. A financial counsellor is a trained professional who will look at your whole situation, help you prioritise, and even speak to your lender on your behalf, all for free. Call the National Debt Helpline on 1800 007 007, Monday to Friday. Aboriginal and Torres Strait Islander peoples can call the free Mob Strong Debt Helpline on 1800 808 488. These services are free, confidential and genuinely on your side.
4. Look at your budget for quick wins
While you sort out the bigger picture, small changes can free up cash fast. Cancel subscriptions you do not use, pause anything non-essential, and see whether any other bills, like energy or phone, also have hardship programs you can tap. Moneysmart’s free budget planner is a good place to see exactly where your money is going.
5. Check whether restructuring the loan helps
Sometimes the fix is changing the shape of the loan rather than pausing it. Extending the remaining term lowers your car loan repayments, which can be enough to make them manageable, though it does mean more interest over time. Your lender may be able to do this as part of a hardship arrangement, so ask what is possible.
6. Escalate to AFCA if your lender won’t help
If your lender refuses your hardship request, does not respond, or makes an offer you cannot live with, you are not stuck. You can take the matter to the Australian Financial Complaints Authority, which resolves disputes between people and financial firms independently and for free. Get A Loan is an AFCA member too, so we take these protections seriously. A lender knowing AFCA is watching often changes the conversation.
7. Look after yourself, not just the loan
Money stress is real stress, and falling behind on car loan repayments takes a toll on your sleep, your health and the people around you. Please do not carry it silently. If it is weighing on you, Beyond Blue is available on 1300 22 46 36, and Lifeline on 13 11 14, both any time of day or night. Sorting the finances is important, but so are you.
What a hardship arrangement actually looks like
A hardship arrangement is simply a plan between you and your lender to get your car loan repayments through a rough patch. It might be temporary, like deferring or reducing your car loan repayments for a few months while you get back on your feet, or a permanent change, like varying the loan itself. When you agree to a new amount, only agree to something you can genuinely afford. If your circumstances change again, tell your lender straight away and renegotiate rather than going quiet.
Two reassuring facts worth knowing. A hardship arrangement will not lower your credit score, and while your credit report will note that an arrangement is in place, that listing is removed after 12 months. So asking for help protects you far more than it costs you.
What happens if you keep missing car loan repayments
It helps to know the road ahead, so you can step in before it gets there. If your car loan repayments keep getting missed and you have not made an arrangement, your lender can issue a default notice, which gives you at least 30 days to catch up the arrears. You can still ask for a hardship variation even at this stage. If nothing is resolved, because a car loan is usually secured against the vehicle, the lender can ultimately move to repossess and sell the car to recover what is owed.
Here is the sting people miss: if the car sells for less than you owe, you can still be chased for the shortfall. That is why acting early matters so much. Every step you take before repossession keeps you in control and keeps the cheaper options on the table.
A honest word on borrowing your way out
When you are under pressure, it is tempting to reach for a quick fix, a payday loan, a cash advance, or new borrowing to cover the repayment. Please be careful here. Taking on more expensive debt to service existing debt usually digs the hole deeper, and high-cost lenders know people in a corner are less likely to shop around. Before borrowing anything, it is worth reading our warning about borrowing.
That said, there are times when restructuring your finance genuinely helps rather than harms. If your car loan is on a high rate and your situation is otherwise stable, moving to a better-structured loan can lower your car loan repayments for real. Our guide on how to refinance a car loan walks through when it stacks up and when it does not. As an accredited finance broker, we can look at whether a better car loan is realistic, but if you are in genuine hardship, speaking to your current lender and a free financial counsellor comes first. Our service is free for you, and we would rather point you to the right help than the wrong loan.
Your quick action plan
- Contact your lender’s hardship team about your car loan repayments now, before you miss a payment if you can.
- Ask for a hardship variation on your car loan repayments. Your lender must consider it and reply within 21 days.
- Call the National Debt Helpline on 1800 007 007 for free financial counselling.
- Trim your budget for quick wins and check other bills for hardship programs.
- If your lender will not help, take it to AFCA for free, independent resolution.
- A hardship arrangement does not hurt your credit score and is removed after 12 months.
- Look after your wellbeing, and reach out for support if the stress is mounting.
Final Thoughts
Struggling with your car loan repayments does not make you a failure, it makes you human, and Australia’s credit laws are built on the idea that people hit rough patches and deserve a fair go when they do. You have the right to ask for help, free experts ready to stand in your corner, and an independent umpire if your lender does not play fair. The one move that closes all of those doors is silence. So make the call, ask the question, and take back a bit of control today.
Disclaimer
The information in this article is general in nature and does not take into account your objectives, financial situation or needs. It is not personal, financial, legal or debt advice, or a recommendation to apply for any product. If you are experiencing financial hardship, contact your lender and consider free support such as the National Debt Helpline on 1800 007 007. Before acting on any information, you should consider whether it is appropriate for your circumstances and seek independent advice where appropriate.
Get A Loan Finance Pty Ltd is not a lender. We are an accredited finance broker and a member of the Australian Financial Complaints Authority. We work with a panel of lenders and finance providers. Product features, eligibility criteria and availability can change without notice, and all finance is subject to lender approval.
