Vehicle Repossession/Surrender

Tander said:
It also screws up your credit score hectic. No one will give you credit easily for at least five years I think.
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Nope, wrong again. Once you are out of debt review, and accounts closed, your score will be pretty good. If a debt is paid up, they are by law forced to remove any "negative" buro information
 
Wow what a story!!

Chasing an "Image": Check!
Falling a for get rich quick scheme: Check!
Getting shafted by friends: Check!

He's an idiot as far as i'm concerned. Sadly some people need to learn these lessons.

As for OP's original concerns, I don't see any other way out of this beside auctioning off of the vehicle. Your friend and his accomplices should get nailed for fraud. Pitty it would harm his family(assuming he has one and they in a low income bracket) more than auctioning off the car and repaying the debt!
 
I feel sorry for this dude. Obviously these people Fsuck him over good and solid.
 
We'l get through this though. Tough lesson in life but we can get past this. As long as he is committed, I am willing to help. What he did was stupid, now he has to accept the consequences, work hard and get himself out of it. No shortcuts.
 
Unfortunately, here is the process for a voluntary surrender:

1. Contact the bank, inform them that the installments cannot be paid. The bank will arrange that you either bring the vehicle to them or that a collections officer collect the vehicle from you.

2. You will need to sign a voluntary surrender agreement.

3. The bank will send the vehicle to its local stores and then from there to the place where the auction will take place.

4. The bank will attempt to get as much for the vehicle as possible on auction, in order to minimize the losses that will be incurred.

5. The vehicle will be sold to the buyer and the proceeds used to set off against your account. For the remaining balance, you will still be held responsible, whatever the amount.

6. You will be signing an acknowledgement of debt and can arrange with the bank to repay the shortfall.

7. As with any voluntary surrender, unfortunately, you will be blacklisted on all major credit bureaus.
 
Bunta said:
oopsie, At least i never had a shortfall.
This dude's properly ****ed!
Best thing he could do is try to sell privately, then make arrangements with the bank for the shortfall.

OR get someone to buy the car by taking over the installments.

Also, remember, the dealers are offering trade value on the car. Retail might be a tad bit more.

Seeing this dude's already properly ****ed, there's always insurance fraud :D

Hey i keeed!
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What ever he does , do not be stupid enough to get someone to take over the installments. Worse mistake you he will ever make
 
Hitchcock said:
Unfortunately, here is the process for a voluntary surrender:

1. Contact the bank, inform them that the installments cannot be paid. The bank will arrange that you either bring the vehicle to them or that a collections officer collect the vehicle from you.

2. You will need to sign a voluntary surrender agreement.

3. The bank will send the vehicle to its local stores and then from there to the place where the auction will take place.

4. The bank will attempt to get as much for the vehicle as possible on auction, in order to minimize the losses that will be incurred.

5. The vehicle will be sold to the buyer and the proceeds used to set off against your account. For the remaining balance, you will still be held responsible, whatever the amount.

6. You will be signing an acknowledgement of debt and can arrange with the bank to repay the shortfall.

7. As with any voluntary surrender, unfortunately, you will be blacklisted on all major credit bureaus.
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Thanks, appreciate the feedback. Will they try to get the best price? Or will they not care given that he has to pay it back?

Also, I was told there would be a judgement against his name, but he will not be blacklisted.
 
F1 Fan said:
Thanks, appreciate the feedback. Will they try to get the best price? Or will they not care given that he has to pay it back?

Also, I was told there would be a judgement against his name, but he will not be blacklisted.
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Judgement almost worse than being merely blacklisted
 
They will try to get the best price they, but it might just be R90 000 or more or less and he will still owe the rest. Best is that the debt review should already have started, cant see any other way out of it.
 
Ouch. A pre LCI with nearly 200K Km has a real world value of about 170-190k, if that. Wouldn't touch a car like that.

If you looked on autotrader now, you wouldn't find a 2009 for more than 220k

R275k is a criminal price

Edit: is this an e90 or e92?
 
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Slightly off topic but this is why many people take GAP/Topup insurance cover when they buy a car on finance. If the car is written off early in the finance period there is a strong chance of a shortfall in what is paid out and what is needed to settle finance on the car.

Best is always to put down as big a deposit as possible, 30% is usually a safe bet.
 
F1 Fan said:
Uber needed specific requirements i.e replacing tyres that are more comfortable, tinting windows etc
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More so than those requirements, is the year model. When I checked last year it was 2010 and up - probably 2011 and up now. If the car was going to be used for Uber upfront, why not ask the requirements before money is exchanged?
 
Paul_S said:
From Westbank:
For agreements that involve finance greater than R250 000 and that fall outside the scope of the National Credit Act (which we call large agreements), the settlement amount is the same as above but with the addition of extra interest known as an early termination fee.
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You can get this fee reduced or even waived if financing a new car through the same finance house .
 
ToxicBunny said:
How did the bank approve the finance?
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I haven't gone through all 10 pages, so apologies if this was answered - but they wil to a point.

They will charge you a higher interest rate if you manage to do it though
 
Just on price - is the 290k what he actually paid? Or settlement on it now, so actual price was far less? Is the 190k offered a trade for another car or a dealer buying outright?

I'd say try 'we buy cars' but they pray on those they can't afford and I will probably offer less.

If he can't do a real private deal, maybe get a dealer to broker a deal for him for 5-10k extra?

Though, 290k is really high ...
 
F1 Fan said:
Thanks, appreciate the feedback. Will they try to get the best price? Or will they not care given that he has to pay it back?

Also, I was told there would be a judgement against his name, but he will not be blacklisted.
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Yes, they will try to get the best price, but on auction, that does not always happen.

No, they will first blacklist the client as a 'repossession'. If the client does not pay the remaining balance of the finance, and after following all normal collection procedures, they will go to court and then get a judgment. Either way, the client will definitely be listed on all credit bureaus if the vehicle is surrendered.
 
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