Vehicle Repossession/Surrender

[marco79]

If its a R100k shortfall then his payments might drop from R6k p.m. to R2k p.m. if the bank offers that option. Usually the finance house would be sympathetic/leniant because of the voluntary surrender. Saves them from repo'ing the vehicle..

Just out of interest, how long did he have the vehicle?

His friends really screwed him big time! That specific car at that high mileage :wtf: Rather pay the shortfall to the bank now else if a turbo goes on the car he'll be left with the high payments, a high repair bill, and a standing car.

 

[ToxicBunny]

Its just over 30k per year, so not that much...

On a performance car like that, the mileage is insane.

 

[Fazda]

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.

The bank will very often finance an amount that is above retail, as certain "extras" can be justified.

However, and this is where this particular thread should be made into a sticky - to inflate a car above retail ONLY helps the bank and possibly the seller, and neither one gives a flying fig about what could happen to you down the road.

I am constantly amazed at the mess that people will get themselves into, in order to buy a car that they actually cannot afford, but think that it would be cool to own.

This should be a warning to all the potential "cool" buys out there! Don't Do It!

 

[CamiKaze]

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.

True, the bank only cares about the other legal documents that are supposed to come with the car like the road worthy and all that. They couldn't give a flying fark for how much the car costs.

 

[Skywalker786]

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.

+1

From the sounds of it he cannot afford the vehicle so its almost pointless asking for a restructure. But he can approach the bank and ask for a restructure but taking into account mileage etc he is going to get screwed in the long run.

Sounds like your friend is going to have to bite the bullet and lose a lot of money.

PS hopefully the car is still insured

 

[F1 Fan]

How the hell did he get 192k on the clock in such a short space of time?

Bought it with 192k on the clock. Has barely does 500km since he got it, has it since December. He didn't buy the car to use, he bought it for Uber, cause they made it sound like it was the best deal ever. He unfortunately is not business minded, so he wouldn't see the flaws in the idea.

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.

Wow that mileage. On a 2009? 335i is a performance vehicle. Should have told his friends to Fsuck off.

If only...

There must have been collusion between the 'friends' that's a shyte deal from every angle.

Without a doubt....it took him so long to realize he has the wrong friends... anyway...

 

[SauRoNZA]

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.

Of course it is.

Buyer pays you the money, you pay the bank and you give him the papers.

Gets done every day.

Also how does a loan for 270k have a capital balance of 290k? I smell a LOT of bull**** here.

 

[F1 Fan]

+1

From the sounds of it he cannot afford the vehicle so its almost pointless asking for a restructure. But he can approach the bank and ask for a restructure but taking into account mileage etc he is going to get screwed in the long run.

Sounds like your friend is going to have to bite the bullet and lose a lot of money.

PS hopefully the car is still insured

Yep, family member, I'm covering the insurance costs....

 

[ToxicBunny]

Bought it with 192k on the clock. Has barely does 500km since he got it, has it since December. He didn't buy the car to use, he bought it for Uber, cause they made it sound like it was the best deal ever. He unfortunately is not business minded, so he wouldn't see the flaws in the idea.





If only...



Without a doubt....it took him so long to realize he has the wrong friends... anyway...

Yeah, his friends screwed him properly... If they didn't do it with this one, they would have found another way... They were only his friend to screw him out of money.

 

[F1 Fan]

Of course it is.

Buyer pays you the money, you pay the bank and you give him the papers.

Gets done every day.

Also how does a loan for 270k have a capital balance of 290k? I smell a LOT of bull**** here.

Ok, clearly you haven't thought your response through. He cannot pay the bank because he has no money to cover the shortfall.

Also, car was bought 3 months ago for 270k, he has only paid one months installment, and missed the other two. The bank charges you penalties for cancelling the loan so early, big penalties in fact. It's not 290k exactly, it's about 287k.

Your smelling sense are terrible.

 

[ijacobs3]

Yep, family member, I'm covering the insurance costs....

register for debit review? or what ever its called? may take a lot longer and cost more

 

[Drifter]

True, the bank only cares about the other legal documents that are supposed to come with the car like the road worthy and all that. They couldn't give a flying fark for how much the car costs.

Not true. A bank may not finance a car way above its relevant market value at that point in time. 30 000 km's per year on a modern vehicle like the 335 is nothing.

 

[supersunbird]

Geez... maybe investigate the debt review thing? Bank auction will just leave him having no car and owing R100 000 to R200 000.

 

[SauRoNZA]

Ok, clearly you haven't thought your response through. He cannot pay the bank because he has no money to cover the shortfall.

Also, car was bought 3 months ago for 270k, he has only paid one months installment, and missed the other two. The bank charges you penalties for cancelling the loan so early, big penalties in fact. It's not 290k exactly, it's about 287k.

Your smelling sense are terrible.

Okay I understand what you mean now.

It would still make more sense to sell it privately but making a deal with the bank on the short fall, rather than sending it to auction.

With that mileage that car will be sold for less than 100k.

Also I'm pretty sure they aren't allowed to penalise you any more, but I might be wrong.

 

[F1 Fan]

register for debit review? or what ever its called? may take a lot longer and cost more

I've looked into it and apparently you end up paying more with a debt review. You have to account for legal costs etc which just inflates the amount.

There's no getting away from the fact that he needs to pay the shortfall. Atleast this way, we can structure a deal directly with the bank to pay it off, without lawyers etc. He gets a judgement on his name until the debt it paid, and then it falls away.

 

[ijacobs3]

I've looked into it and apparently you end up paying more with a debt review. You have to account for legal costs etc which just inflates the amount.

There's no getting away from the fact that he needs to pay the shortfall. Atleast this way, we can structure a deal directly with the bank to pay it off, without lawyers etc. He gets a judgement on his name until the debt it paid, and then it falls away.

yes you do, but at least you can get into a position where hecan afford to pay for the car, and keep it, until hopefully his financial position changes?

 

[F1 Fan]

Okay I understand what you mean now.

It would still make more sense to sell it privately but making a deal with the bank on the short fall, rather than sending it to auction.

With that mileage that car will be sold for less than 100k.

Also I'm pretty sure they aren't allowed to penalise you any more, but I might be wrong.

Not sure about the penalties but it was included in the settlement letter.

I asked the bank if we could sell and then structure a loan for the remainder of the term. They were not willing to do so.

 

[F1 Fan]

yes you do, but at least you can get into a position where hecan afford to pay for the car, and keep it, until hopefully his financial position changes?

Won't change, not in the short term, works for himself and does not earn a good salary. His friends "faked" a salary slip for him.

 

[supersunbird]

True, the bank only cares about the other legal documents that are supposed to come with the car like the road worthy and all that. They couldn't give a flying fark for how much the car costs.

If only, then I could have bought a Bantam bakkie for R60 000 (but the "book value" was only R35 000, so the bank wasn't prepared to finance it, but R60 000 is what one in a good condition goes for) and I wasn't inclined to put down a deposit to cover the rest.

 

[SauRoNZA]

Won't change, not in the short term, works for himself and does not earn a good salary. His friends "faked" a salary slip for him.

Oh dear it just gets better and better.

But even then it might be nullified based on that, but not sure how it would blow back on him.