Car payment if you get Fired

[ConfusedHuman]

Hi guys,

I was recently fired from my job and have bought a new car in the beginning of the year and cannot afford the payments. I was wondering what are my options with this situation?

Can i return the car to the financial institution and they auction it off or something like that?

 

[Joker]

Call your finance house and speak with them, they'll often have a few options for you - stalling your payments for a few months, reducing your payments etc.

 

[UrBaN963]

Also, get another job. Works out wonderfully.

 

[ConfusedHuman]

Also, get another job. Works out wonderfully.

yea i dont plan on not working, i'll go insane!! im just worried about falling back on payments if i cant find a job during the period that the financial institution allows me to have a break on. Im going to be calling them to find out how many months break i can have.

 

[UrBaN963]

yea i dont plan on not working, i'll go insane!! im just worried about falling back on payments if i cant find a job during the period that the financial institution allows me to have a break on. Im going to be calling them to find out how many months break i can have.

Sounds like a good plan bru. Also, whilst job hunting, if you get part time jobs and make part-payments, that generally appeases them too.

 

[Dark Agent]

yea i dont plan on not working, i'll go insane!! im just worried about falling back on payments if i cant find a job during the period that the financial institution allows me to have a break on. Im going to be calling them to find out how many months break i can have.

Did you take out insurance on your credit(Debt Insurance or something like that). If you worked more then 6 months you will be covered on interest and chargers until you find a new job. Your payment will only start after 3 months(up to 12 months) / as soon as you find work.

 

[skeptic_SA]

Handing the car back is an option. They will auction it off (usually for 1/5 of its value) and then you are still liable for the balance. NOTE: THIS IS NOT A SOUND OPTION.

 

[Dark Agent]

Handing the car back is an option. They will auction it off (usually for 1/5 of its value) and then you are still liable for the balance. NOTE: THIS IS NOT A SOUND OPTION.

Agreed not an sound option. Selling the car privately might work out but you bought a NEW car which already lost 30% of value.

 

[skeptic_SA]

Agreed not an sound option. Selling the car privately might work out but you bought a NEW car which already lost 30% of value.

Private is a better option agreed. OP I know your post says new... But pls clarify. New out the box or new second hand?

 

[Nemus]

I'm sure you can claim UIF. It might take a few weeks, but chat to the Financial Institution to hear if they can give you a break for a month or so. UIF is usually around 75% of your salary and, if i'm not mistaken, tax free.

 

[PsyWulf]

yea i dont plan on not working, i'll go insane!! im just worried about falling back on payments if i cant find a job during the period that the financial institution allows me to have a break on. Im going to be calling them to find out how many months break i can have.

Whatever you do do,inform ALL your creditors as soon as possible,home car loans clothes accounts cellphone the works,most institutions prefer dealing with their clients to losing them to Debt collectors/courts

 

[ConfusedHuman]

Private is a better option agreed. OP I know your post says new... But pls clarify. New out the box or new second hand?

i might look at the private option

 

[supersunbird]

I'm sure you can claim UIF. It might take a few weeks, but chat to the Financial Institution to hear if they can give you a break for a month or so. UIF is usually around 75% of your salary and, if i'm not mistaken, tax free.

Maximum UIF payout is capped at something around R4800 per month if I recall correctly, will pay for up to a year (if earning over R14 872pm your contribution is capped at R148.72pm, go check your payslip, that's why payout is capped).

Can claim if retrenched or fired.

 

[zululami]

Sorry about your situation.

 

[ConfusedHuman]

Sorry about your situation.

thanks, sh-it happens

 

[Mike Hoxbig]

Am I the only one wondering about what happened to get you fired?

 

[Ecko_1]

UIF is around R6k a month limit IIRC. My wife took unpaid maternity leave last year and it was capped around R6k per month.

Best bet is to take everyone's advice. Do your best to avoid your creditors taking action, and you going into debt review (this never leaves you).

Try a private sale, but if your car was bought brand new, its probable that you haven't got any equity in the car yet.

 

[raeesdawood]

thanks, sh-it happens

If u got a degree i can help u get a job.....pm me for details

 

[SauRoNZA]

Whatever you do TALK TO YOUR BANK.

Don’t make the mistake like so many others and end up not paying.

Be forthcoming and they’ll often make a plan for you.

 

[Dark Agent]

I just remember. If you get blacklisted, it will be harder for you to get a new job. I got blacklisted because I argued not to pay the RCS card fee for 3 months because I did not use it. I got blacklisted and only got to know about it when I they did checks after I signed offer. I was lucky I explained them , send them a full credit report and documents to my new EMPLOYER!. It was extremely embarrassing, I ended up just paying it (R180 + R390 fees). Your case is a bigger amount.