Vehicle Repossession/Surrender

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Quite a sad topic, but a close family member has gotten himself into stupid financial trouble, and Im trying to help him out of it.

In short, he overpaid for a car (BMW 335 with 192 000km), 270k, but the car is worth closer to 190k. He can't afford the repayments, so I requested the settlement amount which came to roughly 290k (due to early cancellation penalties). I called the bank today(Wesbank) to fetch the car to be sent to auction. Does anyone know the full process? Anyone been through it before?

He does not have enough money to cover the shortfall, so he would have to work a repayment agreement with the bank..

Additional Info:

Car cannot be sold privately, and he does not have the funds to pay up the difference.
 
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why would he get a loan for an inflated amount? if the car was worth 80k less how did he get financing for it?
 
F1 Fan said:
Quite a sad topic, but a close family member has gotten himself into stupid financial trouble, and Im trying to help him out of it.

In short, he overpaid for a car, 270k, but the car is worth closer to 190k. He can't afford the repayments, so I requested the settlement amount which came to roughly 290k including penalties. I called the bank today(Wesbank) to fetch the car to be sent to auction. Does anyone know the full process? Anyone been through it before?

He does not have enough money to cover the shortfall, so he would have to work a repayment agreement with the bank..
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He's going to sit with R 100k debt and have nothing to show for it?

I could never understand people having it go so far to have a vehicle repossessed instead of selling it off before hand. Imagine having to pay R 100k just for laughs... Jirre.
 
F1 Fan said:
Quite a sad topic, but a close family member has gotten himself into stupid financial trouble, and Im trying to help him out of it.

In short, he overpaid for a car, 270k, but the car is worth closer to 190k. He can't afford the repayments, so I requested the settlement amount which came to roughly 290k including penalties. I called the bank today(Wesbank) to fetch the car to be sent to auction. Does anyone know the full process? Anyone been through it before?

He does not have enough money to cover the shortfall, so he would have to work a repayment agreement with the bank..
Click to expand...

How did the bank approve the finance?

They've always refused finance on vehicles that are overpriced from what I know.
 
As for your question in the OP.

They sell the car for whatever they can get. Even if it's R 100k. The person who signed the initial agreement then needs to pay the difference. In rare cases the vehicle sells for more than the loan amount and the balance paid over to the person who took up the initial agreement.

Please note, the bank doesn't give a fark. If they get R 60k for that R 190k car they will take it. Your family member will still have to pay the balance.
 
akescpt said:
why would he get a loan for an inflated amount? if the car was worth 80k less how did he get financing for it?
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Retail of the car is around 270k, so I can see why the bank financed it. But it is a 2009 335 with 192000 kms on the clock. Every dealer I have spoken to will not offer more than 190k. If the car had lower mileage, and was in mint condition, then yes, you easily looking at at a much higher trade in.

Selling privately is not an option. In order to do so, he would need to settle the shortfall in cash to get the ownership papers. He doesn't have the money to do so.
 
Pitbull said:
As for your question in the OP.

They sell the car for whatever they can get. Even if it's R 100k. The person who signed the initial agreement then needs to pay the difference. In rare cases the vehicle sells for more than the loan amount and the balance paid over to the person who took up the initial agreement.

Please note, the bank doesn't give a fark. If they get R 60k for that R 190k car they will take it. Your family member will still have to pay the balance.
Click to expand...

That's what I'm worried about. They claim they will do a valuation on the car once they've picked it up, we have 10 days to decide whether we would like to proceed with the auction. At this point, I don't know what else to do.
 
F1 Fan said:
Retail of the car is around 270k, so I can see why the bank financed it. But it is a 2009 335 with 192000 kms on the clock. Every dealer I have spoken to will not offer more than 190k. If the car had lower mileage, and was in mint condition, then yes, you easily looking at at a much higher trade in.

Selling privately is not an option. In order to do so, he would need to settle the shortfall in cash to get the ownership papers. He doesn't have the money to do so.
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I hope he at least managed to impress friends and family for a few minutes with his BMW.
 
Brenden_E said:
I hope he at least managed to impress friends and family for a few minutes with his BMW.
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I don't know what to say. His "friends" convinced him to buy the car from another "friend" because apparently they could list the car on Uber and make some money. Needless to say, it makes no sense to buy a 3.5 litre to use as a taxi. It makes even less sense when you can't afford repayments. Im helping him because he is a good guy, he just makes terrible decisions, and has the wrong friends.
 
Gonna be an expensive lesson for him :(

I concur with what Pitbull said. The banks really do not care.
 
How the hell did he get 192k on the clock in such a short space of time?
 
F1 Fan said:
I don't know what to say. His "friends" convinced him to buy the car from another "friend" because apparently they could list the car on Uber and make some money. Needless to say, it makes no sense to buy a 3.5 litre to use as a taxi. It makes even less sense when you can't afford repayments. Im helping him because he is a good guy, he just makes terrible decisions, and has the wrong friends.
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It is a 3 litre (with a couple of turbos), not 3.5.
 
F1 Fan said:
I don't know what to say. His "friends" convinced him to buy the car from another "friend" because apparently they could list the car on Uber and make some money. Needless to say, it makes no sense to buy a 3.5 litre to use as a taxi. It makes even less sense when you can't afford repayments. Im helping him because he is a good guy, he just makes terrible decisions, and has the wrong friends.
Click to expand...

Just hope he learns from this. 100K is a lot to pay for nothing.
 
If he can't afford the payments can't you approach the bank to re-structure the deal?
Surely they would willing to try help him in that way, rather than going the whole repo/auction route.
If he is willing to pay that is.
 
Get him to contact the Consumer Justice Group. If the bank financed R270K on a car that is only worth R190K, that amounts to reckless lending.
 
Drifter said:
Get him to contact the Consumer Justice Group. If the bank financed R270K on a car that is only worth R190K, that amounts to reckless lending.
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The car lost value due to high mileage. Bank did nothing wrong.
 
Wow that mileage. On a 2009? 335i is a performance vehicle. Should have told his friends to Fsuck off.
 
There must have been collusion between the 'friends' that's a shyte deal from every angle.
 
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