Falling behind on your car repayments
Car repossession has a major impact on your life. Everything becomes more difficult – getting to work, getting the kids to and from school, medical emergencies… So, you want to hold onto your car for as long as you can.
But what if you can’t afford the instalments anymore? Can the bank immediately repossess your vehicle?
There is a legal process that must first be followed, and you need to understand it to protect yourself. You should know your rights and what the law specifies in this matter.
How Cars Get Repossessed
There are two ways in which a bank can legally take possession of your vehicle.
In the first instance, a court order must be obtained ordering you to allow the vehicle financier to take the vehicle. If there is no court order, however, they cannot force you to give your car back.
Alternatively, it can be done through voluntary surrender in terms of the National Credit Act. Voluntary surrender of the vehicle is most credit providers’ first choice because it’s an easier, quicker and cheaper method to get the vehicle back.
What to Do When Confronted With Car Repossession
You must not be intimidated when ‘someone from the bank’ hands over a form for you to sign whilst trying to take possession of the vehicle. Any bank form you sign other than a summons, are most likely an agreement that you’re voluntarily giving the vehicle back. Few people realise that they are under no obligation to sign such a form and hand over the vehicle.
Unfortunately, credit providers often blatantly bully consumers, and I want to make it very clear that at this stage you don’t have to hand over your vehicle.
What to Do When You Can’t Afford Your Car Instalments
Should you find that you can no longer afford your vehicle, and are NOT in arrears with the payment thereof, you may choose to make use of Section 127 of the National Credit Act and voluntarily surrender your vehicle.
To arrange this, you must give a written notice to your credit provider stating that you wish to terminate the credit agreement and that you require them to pick up the vehicle. As specified by the Act the credit provider must then furnish you with a letter within 10 days, indicating the estimated sale value of the vehicle. You can dispute the value if you are not satisfied with it, withdraw your notice and resume possession of your vehicle – but only if you are not behind on your installments.
In the case of a voluntary surrender, the bank is obliged by the Act to sell the vehicle as soon as possible and for the best price reasonably obtainable. It is important to realise that when the vehicle is sold at an auction, you are still liable to pay the shortfall if the vehicle is sold for less than the outstanding balance on the account – you could end up paying for a vehicle you don’t even have anymore. Some, however, may feel that it’s better to pay a reduced premium on a smaller amount, even if they don’t have the asset anymore, than paying a high premium for an asset they have but can’t afford.
On the other hand, if the credit provider wants to litigate and get a court order for the repossession of the vehicle, a summons must first be served on you. A court date will be set, where you can present your case.
This is one more reason to ensure that your credit provider always has your latest address on file, for without it the summons will still be served but you won’t know about it. Subsequently, you will also not know about the court date or be able to appeal your case in court.
If you tried to negotiate with the service provider for an adjusted payment plan, the Magistrate might understand and there could be some sort of leniency in the matter, possibly suggesting a reduced monthly premium over a longer period, to accommodate both parties.
However, if there is no record of negotiations, the vehicle may be awarded to the creditor to sell at any cost they deem reasonable to cover their expenses – and you may still end up paying the shortfall if it was sold for less than your outstanding balance.
What to do when you fall behind on your car repayments?
Call AUTOFIN ASSIST now or email us now!!!
Believe it or not Autofin Assist can help you not to lose your car
We here at Autofin Assist are here for you, we have helped many clients in the past and currently not to lose their cars
What do I do, I am about to lose my car? Can you help me???
Yes, we can this is how….
- We at Autofin Assit will assist your situation and will get all of the information from you pertaining to your current situation with the bank regarding your arrear payment amount outstanding on the motor vehicle. Autofin Assist will help you and assist you in order for you to settle the outstanding amount to the bank in order for you not to lose your motor vehicle.
- After one of our staff members has done an assessment on your situation they will email you an application to complete. You will have to complete the application and email it back to us with all relevant supporting documents pertaining to the deal which are:
- Clear scan copy of your ID (identity document)
- Clear scan copy of valid Driver’s licence
- Clear scan copy of proof of residence, utility bill (not older than 3 months and must not be an invoice)
- Clear scan copies of up to date 3 x months payslips (salary advices)
- Clear scan copies of up to date 3 x months bank statements with bank stamp
- Up to date motor vehicle settlement letter from the bank
- Copy of the cars registration documents (ownership papers) from the bank
- Your ITC report from Trans union (Tel.no. for Trans union
If you are self-employed we can also help you, the office will explain to you in detail on what supporting documents will be required
Autofin Assist will help you with a cash loan in order for you to pay the outstanding arrears payment to the bank and will arrange affordable and low interest rate repayment for you over 4, 5, or 6 years
Autofin assist will help you not to lose your car over the outstanding arrears payments due to the bank. We will correspond with the bank on your behalf in order for them to know that we are busy helping you with the settlement in order for you not to lose your dream car
Please note at all time Autofin assit will not take your car from you or take ownership of your car, you will stay the owner of your car and the car will stay with you in your possession. We do not impound cars or take ownership of your car at any time. We are here to help you and not to take your car
Please note that in order for us to have a successful outcome for you that it depends from client to client on a number of factors, so terms and conditions do apply from client to client.
DISCLAIMER: The content of this article is for informational purposes only and should not be considered as financial advice. Readers are encouraged to consult a financial adviser with any questions or concerns they have regarding their personal finances.