While her car was insured it transpired that she would not get enough back to cover the cost of a suitable replacement.
So she went to the loan company she had been with for 10 years, NZCU Baywide, and spoke with consultant Glenys Hannan.
"She helped me through the loan process and I had no idea that by getting a personal loan I was in the draw for $5000," Ms Warner said.
She called into the Napier branch office to sort out a new cash card and while she was there her phone rang.
It was NZCU head office and she was told she had won the competition and $5000 would be heading her way.
"Little did they know I was actually in the branch," she said.
"My son was with me and when I started to cry he thought something bad had happened but it was quite the opposite - they were tears of joy."
Staff at the branch were delighted with the timing because they were the first to congratulate her.
Ms Hannan said she was "rapt" that Ms Warner was the winner because she had known her for many years.
"It couldn't have gone to anyone more deserving," she said.
"Kathleen was so upset when she wrote her car off on her birthday and we have been able to support her."
The competition promotion was open to all Baywide customers who took out a personal loan between November 1 and December. The winner was drawn randomly from across the 16 branches across the country.