You can avoid having your car repossessed by the bank if you follow the tips below. Most people need a vehicle in South Africa so you don’t want your beloved wheels falling to bank repossession.
Banks like ABSA, Standard Bank, Nedbank and FNB follow a similar vehicle repossession process in South Africa.
The Scenario:
You have bought a car on a higher purchase agreement with a creditor (often a division of your bank). And through life’s circumstances you have skipped a few payments and are now facing having that car repossessed.
SHOCK – HORROR – EMBARRASSMENT
I am talking from past experience here having been in the situation of falling into debt and facing an agent for the repossession of my wheels.
Something most of us cannot do without, especially here in South Africa. Because of a lack of good public transport amongst other things.
This may also interest you: What To Do If The Bank Has Come To Repossess Your Car
First rule to avoid having your car repossessed – Be Calm
This scenario can be quite embarrassing and emotionally challenging for anyone that’s faced with repossession of a vehicle. So my first advice would be try your best to brush aside these emotions.
It’s action that’s needed in this circumstance. Because you don’t want to get yourself in a state where you cannot think rationally or speak convincingly to your creditor.
From a legal perspective the car doesn’t actually belong to you until it has been paid in full so you don’t have much weight to throw around here.
These are my tips to give yourself the best shot at hanging onto that vehicle.
Don’t Hide from your Creditor to Avoid Having a Car Repossessed
The worst thing you can do is ignore the phone call from the bank or a knock at the door.
This will inflate your problem. Upset your creditor’s and you make them more determined to repossess the car.
Face up and speak to them with confidence even though you’re not feeling that way.
Can I Hide my Car From Repossession Agents?
No it’s not worth hiding your car to avoid repossession. Because you are going to end up in worse trouble down the line.
Don’t hide the car in the garage or your friends garage either. Or leave it down the local supermarket car park for a week.
The banks deal with this all the time as well. So you cannot run from this kind of problem without ending up in really hot water. Or even jail, with really cold water….. Showers!!
Don’t Try and Hide Your Car!
Manners with the Bank
Be polite when speaking to your creditor on the phone no matter how blunt or rude they are to you.
I had quite a rude Woman from ABSA bank calling me about repossessing my car at the time.
However, address them as Mr or Mrs and use your please and thank you’s.
They are trained to deal with difficult people and they will not give you any time if you’re laying on excuses. Or acting like most other people trying to avoid having a car repossessed.
Even though it may not seem that your good manners are getting you anywhere. It will be having some kind of impact on your creditor’s human nature (presuming they are human). And may just be your saving grace in the long run.
Negotiate with the Bank
Try and negotiate with the bank repossession department.
ABSA, FNB, Standard Bank and Nedbank all have agents dealing with repossessed cars on a daily basis.
I’ve found that even though your account has been handed over to them they are not completely closed to further negotiation. Do it tactfully though.
Ask them thing’s like “What’s the absolute minimum payment I can deposit in order to keep the car and buy me a little more time?” Or “I have every intention to get up to date again with my re-payments, what can we do to solve this issue? To give me a little more time to sort out my finances?”
Keep Your Promise to Avoid Having Your Car Repossessed
If you have managed to work out a deal with your creditor or the repossession department make 100% sure you stick to your end of the bargain.
Because doing this will gain a little trust between you and your creditor for if these awkward circumstances happen to rise again in the future.
If you have pulled out all the stops and at the end of the day you still have the car repossessed it’s honestly not the end of the world.
Even when they repossess a vehicle it gets impounded for a certain holding period.
So that means you still have time to sort your finances and can then pay to get the car back.
Obviously it will put a dent on your credit record for some time. But if it’s a choice between keeping a vehicle, having a roof over your head and food on the table, let the car go.
Another option
If you have paid off a good amount already on the initial purchase price of the car you could consider selling it. Then pay off your creditor and opting for a cheaper runabout.
Or get yourself a nice bicycle!