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Car Repossession

We will help you prevent the repossession of your car

The repossession of cars in the current economic climate is high. Customers are struggling to keep up with repayments because of the increase in living expenses. It could also be that someone in the household lost their job and finding themselves in new job where they are paid less.

Car finance companies, like Wesbank and MFC, are very aggressive in collecting arrears or the car. It is very important to contact them before missing a payment. If you miss a payment and then approach them for grace, they will not be willing to listen.

When you see that you will not be able to make the next payment to the finance company, you need to contact them immediately. Explain your situation and then ask for a payment holiday. A payment holiday is when you ask the bank to only pay half of your normal installment for 3 to 6 months. They might even allow you to pay nothing for 3 to 6 months.

You need to make sure you have a very good explanation why you need a payment holiday. You also need to tell them how you are going to catch up with your instalments. Or you need to renegotiate the terms with your creditor, like paying over a longer term.

The repossession procedure of the creditor is fast when it comes to cars. After 3 months of no payment of negotiation, the creditor will want the car or the arrears. They will give your file over to a tracing agency of debt collector. The debt collector will call you to collect car or arrears.

By this time you must have a plan to pay the arrears soon. If the collector cannot get the car or the arrears from you, they will proceed with legal action. The creditor will then follow the legal procedure to collect car via the courts with an attachment order.

You will have no other chose but to hand over the car. All legal expenses will go onto your account. The car will be sold on auction and the proceeds will be written off against your account. The balance you will be liable to pay immediately. You can negotiate with creditor to pay this off. If you don’t come to agreement to pay it off, the creditor will get second attachment order against any of your other assets.

How to prevent repossession of your car

Most people wait to long before they act to prevent the repossession of their cars. They hope that they will somehow manage to get the arrears money from somewhere to pay and stop repossession. The problem is that the customer waits to long for this miracle to happen.

Your options become less when you wait to long. As soon as legal action has been take or summons has been issued, you cannot apply for debt counselling to help you. You need to apply for debt counselling early enough so that the debt counsellor can negotiate with creditor.