By Joy Pearson

What to do if my engine blows up on my financed vehicle?

What to do if my engine blows up on my financed vehicle?
What to do if my engine blows up on my financed vehicle?

20 November 2023
By Joy Pearson
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Acquiring a new car on finance is a significant milestone that often represents newfound freedom and mobility. However, what happens when your newly financed vehicle encounters a major setback, like a sudden engine failure? In today's post, we'll delve into the unforeseen challenge of engine troubles shortly after obtaining a financed car and offer you a comprehensive guide on how to effectively address and resolve this unexpected situation. 

In the event of an unexpected engine failure while driving, prioritizing safety is paramount. Your immediate response should revolve around safeguarding yourself and your passengers from harm. Upon noticing signs of engine trouble, such as unusual noises, loss of power, or dashboard warning lights, it's crucial to act swiftly and decisively. Begin by gently steering your vehicle to a safe location, ideally off the road and out of the path of oncoming traffic. Activate your hazard warning lights to alert other drivers to your compromised situation. once safely parked, turn off the ignition to prevent potential fuel leaks or further damage. 

With the vehicle secured, assess the situation inside, ensuring that all passengers are informed and aware of the issue. Exit the vehicle through doors facing away from traffic and assist any passengers, especially if you're on a busy road. Relocate yourself and your passengers to a safe area, such as a nearby sidewalk or designated rest area, away from the flow of traffic and potential hazards. If available, use warning triangles or reflective cones to provide additional warning to approaching drivers. Finally, contact your preferred roadside assistance service or local authorities to request assistance, providing precise details of your location, the nature of the issue, and the number of passengers requiring aid. Prioritizing safety during an engine failure ensures the well-being of all involved while laying the foundation for subsequent steps in addressing the situation, including liaising with your lender or insurance provider and seeking professional automotive assistance. 

After ensuring the safety of all passengers in the event of an engine failure, it is of paramount importance to initiate prompt communication with your lender of finance provider. This step is essential as it establishes clear lines of communication and ensures transparency regarding your financial obligations and the status of your finance agreement. Notifying your lender or finance provider about the engine issue serves several critical purposes. Firstly, it keeps them informed about the situation, allowing them to officially record the issue and demonstrating your commitment to fulfilling your financial responsibilities, even in the face or unexpected challenges. Secondly, discussing the engine problem with your lender or finance provider provides an opportunity to clarify how this situation impacts your financing agreement. They can guide you on the necessary steps to take, which may include documenting the problem, providing relevant information or documentation, and understanding potential adjustments to your financing terms. Engaging in open and proactive communication ensures that both parties are on the same page regarding the status of your financed vehicle and allows your lender or finance provider to offer guidance on the best course of action, including assessing warranty or insurance coverage and how it may affect your loan or lease agreement. By promptly contacting your lender or finance provider, you demonstrate responsibility and transparency, facilitating the navigation of financial aspects associated with engine failure while minimizing potential misunderstandings or complications related to your financing agreement. 

After engine failure, it's crucial to check if your vehicle is still under warranty. Most new or used cars on finance come with warranties that last for a specified number of years or miles. If your vehicle is within the warranty period, you may be eligible for cost-free repairs or even a replacement engine. Examine the warranty terms, noting the components covered and any exclusions. If the engine issue aligns with your warranty coverage, contact the manufacturer or dealership promptly, providing detailed information and documentation. Reviewing your warranty can potentially save you significant money on engine-related repairs or replacements. 

When confronted with engine failure, it's imperative to engage the services of a qualified mechanic or an authorized service center. Engine problems can arise from a multitude of factors, including normal wear and tear, manufacturing defects, or inadequate maintenance. Professional mechanics possess the expertise, training, and diagnostic tools needed to delve into the intricacies of engine failure. They conduct meticulous assessments, examining engine components, systems, and potential failure points to identify the precise cause. Seeking professional inspection ensures that any necessary repairs or maintenance adhere to industry standards and manufacturer guidelines, prompting the vehicle's reliability and longevity. 

Following the inspection of your vehicle's engine, you'll receive a detailed estimate for repair costs. It's essential to carefully review this estimate and engage in open communication with your lender, finance provider, or insurance company to assess the financial implications. Discussing your situation with your lender is crucial, as they may present you with various financing options tailored to your needs. These options could include extending your loan term to accommodate repair costs or restructuring your financing agreement.  It's imperative to gain a comprehensive understanding of any proposed changes to your loan terms and how they impact your monthly payments. By evaluating repair costs and exploring financing alternatives, you empower yourself to make well-informed decisions that align with your budget and the necessary repairs. 

In the event of engine failure, when you're working with a car finance broker, it's important to consider both your legal protections and long-term goals. You car finance broker plays a pivotal role in managing communication between you and the dealership, streamlining the process. However, depending on the circumstance surrounding the engine failure, you my still want to explore legal options. While you might not need to consult directly with a legal professional, you can seek guidance from your finance broker, who can provide insights into your rights and potential remedies, particularly if the engine trouble is related to the purchase or financing process.