Consider to downsize from an expensive luxurious vehicle
Consider to downsize from an expensive luxurious vehicle. Credit Providers can be approached with a request to“ consolidate down”. Downsizing can only be implemented if Credit Providers are agreeable to provide a consolidation loan to finance a smaller vehicle. Most Credit Providers will not at present consider such loans as consolidation loans or loans to downsize due to the fact that based on their interpretation this lending could be seen as reckless. If downsizing is an option the consumer will be liable for the shortfall on the vehicle handed back on a voluntary basis.
NDRC Practice NoteLast reviewed 2026-04
Downsizing is offered as an alternative to creditor relief, not in addition to it. Where downsizing is realistic, the proposal models the post-downsize affordability rather than the current position.
Drawn from NDRC's active case work. For your situation, see our debt counselling overview.
Cite this clause
National Credit Regulator. (2015). Annexure B — Debt Review Assessment Guidelines, clause 8.3: Consider to downsize from an expensive luxurious vehicle. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 45.