Vehicle Repossession/Surrender

Tander said:
The financial institutions I can understand them checking for illegal stuff and doing their background checks. Like you say, they cannot hold anything against you if your credit history is shoddy. Its non of their business.
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It will be very hard to prove that is why you did not get the position. They might just choose the guy who does not have financial issues. If someone is in trouble financially they might be more likely to submit fraudulent time sheets for instance, might be off sick more with higher stress levels, all sorts of things.
 
But they would need your consent to check the history in the first place, not so?
 
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....and in other news, I just did the EFT to settle my car finance after only 4 instalments out of a possible 60 :cool: saved R25k in the long run.
 
Well it was only R75k on a R100k car, but still, fees so good that once again both my cars are settled.
 
I agree, I don't know why people would spend years paying off something that depreciates as quickly as a new car. So you lose R xxx,xxx to say you drove it for five years and now you're selling it to lose another R xxx,xxx on something else.
 
Depreciation is a bitch :mad: My previous car was bought for R100k in 2004 and when I left it at a dealer last year November they gave me R30k for it. I was hesitant to plunge R75k for a settlement on my newer car purely because I hate the fact it will depreciate in value. The money I paid for it is getting less each day. Yet if I just let the finance run its 5 year course I would not only have the depreciation as loss but also R25k of interest.

The only consolation I have is that I get some joy from driving it and the rest of the time it keeps my loved ones safe when they use it.

Anyway, back to the OP - I still want to know how a sane adult that is considered legal of age to sign binding contracts can end up in such a dire debt state.
 
Rouxenator said:
Depreciation is a bitch :mad: My previous car was bought for R100k in 2004 and when I left it at a dealer last year November they gave me R30k for it. I was hesitant to plunge R75k for a settlement on my newer car purely because I hate the fact it will depreciate in value. The money I paid for it is getting less each day. Yet if I just let the finance run its 5 year course I would not only have the depreciation as loss but also R25k of interest.

The only consolation I have is that I get some joy from driving it and the rest of the time it keeps my loved ones safe when they use it.

Anyway, back to the OP - I still want to know how a sane adult that is considered legal of age to sign binding contracts can end up in such a dire debt state.
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Most likely a case of (trying) to keep with the Joneses.

Sadly; a materialistic world we live in.
 
Rouxenator said:
Depreciation is a bitch :mad: My previous car was bought for R100k in 2004 and when I left it at a dealer last year November they gave me R30k for it. I was hesitant to plunge R75k for a settlement on my newer car purely because I hate the fact it will depreciate in value. The money I paid for it is getting less each day. Yet if I just let the finance run its 5 year course I would not only have the depreciation as loss but also R25k of interest.

The only consolation I have is that I get some joy from driving it and the rest of the time it keeps my loved ones safe when they use it.

Anyway, back to the OP - I still want to know how a sane adult that is considered legal of age to sign binding contracts can end up in such a dire debt state.
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Wish I could answer that for you. Been scratching my head around this ever since. It's funny cause Im the exact opposite. Only debt I have us my home loan. Car is paid up, and no accounts. Trying to drill this into his head now.
 
Buying a car on credit is not really a good use of money. You earn money by sacrificng time (going to work). You have a limited amount of time before you die.
Here is why:
The sticker price is R100k, and with interest will be R125k (example)..thats R25k you pay and never get back
And then the car is worth half that amount..so owning the car has cost you R75k.

Either lease it (if you like new stuff) (over 2 or 3 years the depreciation alone can work out the same as the lease cost...so use someone elses money for this and go invest your own somewhere where it earn on your behalf) <--thats clever, fi you like new cars
OR
buy it outright (older car) <--thats clever, it'll never cost you a cent extra, has depreciated as far as it is likely to go and is now an asset. And look after the thing...whatever it is worth when you decide to sell it is your own money. Give it a wash, treat it nice. Get the thing serviced etc.
Mr and Mrs Jones arent the people you want to keep up with. Let them do their thing..it may be on credit or it may be inheritance,..thats their business.... but if they look down at you then they arent worth having around as friends, or even acquaintances.

But they got the system sown up nice, and people want cars that cost as much as their houses. On credit. Yesterday.
 
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werner said:
Buying a car on credit is not really a good use of money. You earn money by sacrificng time (going to work). You have a limited amount of time before you die.
Here is why:
The sticker price is R100k, and with interest will be R125k (example)..thats R25k you pay and never get back
And then the car is worth half that amount..so owning the car has cost you R75k.

Either lease it (if you like new stuff) (over 2 or 3 years the depreciation alone can work out the same as the lease cost...so use someone elses money for this and go invest your own somewhere where it earn on your behalf) <--thats clever, fi you like new cars
OR
buy it outright (older car) <--thats clever, it'll never cost you a cent extra, has depreciated as far as it is likely to go and is now an asset. And look after the thing...whatever it is worth when you decide to sell it is your own money. Give it a wash, treat it nice. Get the thing serviced etc.
Mr and Mrs Jones arent the people you want to keep up with. Let them do their thing..it may be on credit or it may be inheritance,..thats their business.... but if they look down at you then they arent worth having around as friends, or even acquaintances.

But they got the system sown up nice, and people want cars that cost as much as their houses. On credit. Yesterday.
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Couldn't have said it better myself :)
 
There is the option of just bailing on the debt. Banks write off huge amounts of bad debt each year. Although the credit rating will go for a ball of poo. Maybe declare insolvency/bankruptcy?
 
Even if you buy and old car it still depreciates. The R100k car I just settled sold for R205k in 2007. So you do score a bit, but it is still a money pit.
I hope this dude gets a job where he can perform and that his perfomance gets rewarded.
 
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 (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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Let him go under debt review ASAP.

If he is 3 months behind in payments he will possibly need a lawyer to file some form of protection order from the bank to allow debt review process to run its course.

That way he will hang on to all his isht and pay it off over a much longer time at lower rates...
F1 Fan said:
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.
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Rouxenator said:
Even if you buy and old car it still depreciates. The R100k car I just settled sold for R205k in 2007. So you do score a bit, but it is still a money pit.
I hope this dude gets a job where he can perform and that his perfomance gets rewarded.
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Which car did you get? Is there a thread on it?
 
Thought I'll provide an update...

Car was sold under the "surrender program" from Wesbank for 135k....
 
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