A Few Tips To Avoid Having Your Car Repossessed
- 15 Comment
The Scenario:
You have purchased 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 
Once again, I am talking from past experience here having been in the situation of falling into debt and facing the repossession of my wheels. Something most of us cannot do without, especially here in South Africa due to lack of good public transport amongst other things.
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 and 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 - The worst thing you can do is ignore the phone or a knock at the door, this will inflate your problem, upset your creditor’s and make them more determined to repossess the car. Face up and speak to them with confidence even though you’re not feeling that way. Don’t hide the car in your friends garage either or leave it down the local supermarket car park for a week, your creditor deals with this all the time as well and 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 It!
Manners - Be polite when speaking to your creditor on the phone no matter how blunt or rude they are to you. 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 and acting like most other people in danger of having car’s 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 – Try and negotiate with the repossession department. 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 and give me a little more time to sort out my finances?”
Keep Your Promise - 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. 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 which 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.
Need Cash Fast? – Loan Applications
Another option - If you have paid off a good amount already on the initial purchase price of the car you could consider selling it, paying off your creditor and opting for a cheaper runabout.
Or get yourself a nice bicycle!
15 Comments on this post
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esvl said:
Justin. Are you having some car troubles?
February 1st, 2008 at 10:07 am -
Justin Sawyer said:
Hey man
Thanks for your comment.
I was hoping someone may ask me that and help me out with a few bucks! Will forward bank details.
But seriously, I’ve experienced some financial challenges during my life and it’s put me in a position to offer a few tips and advice to those who are facing difficulty now.
Hopefully some of my strange articles can help a few people!
February 1st, 2008 at 10:20 am -
retrosaint said:
Dude you forgot the “PayPal Donate” button. Good article!
February 1st, 2008 at 11:18 pm -
Justin Sawyer said:
LOL…
I did didn’t I?
Thanks for your comment mate, bank details forwarded.
February 1st, 2008 at 11:35 pm -
Tania said:
Hi Justin, once you you have had your car repossessed……and there is obviously a balance, the bank auctions it are you still liable for the balance after they sold it etc….as I am going thru a difficult patch and although I need it i will hand it over but need to know the financial implications first.
thanksAugust 31st, 2008 at 4:30 pm -
maki said:
Hi,
Im going through a rough patch myself,they took my car in for 30days,and said i’ll get it back when i pay,i was suppose to pay R8,303.i could’nt afford to pay it all however i managed to pay R4320.i’m worried cause i owe little money now and i cant seem to get a loan,do you think it’s possible for them to give me a chance or it’s already late for me.i did fax proof of payment.
September 4th, 2008 at 1:18 pm -
Justin said:
Hi Maki
It would be hard for me to comment on that, sorry.
A lot of these circumstances are individual and it depends on your creditors, your history etc etc. All I can say is speak to them and be open and honest and normally they will be somewhat understanding and give you a bit of a break.
All the best with it!
Justin.
September 4th, 2008 at 1:23 pm -
Sammy said:
Hi Justin,
I’m 2 months in areas on my account and even thou I’m struggling a bit, I still managed 2 pay about 15% more than my regular installment for the past 3/4 months. Despite this I’m still threatened with repossessions. I tried to negotiate for longer period to bring the account up to date with no success.
Do I have any options?November 26th, 2008 at 11:48 am -
Justin Sawyer said:
Hi Sammy. Unfortunately I am far from an expert on this topic even though I have experienced similar to what you are going through.
The main thing I have found to be the most helpful, as far as ABSA goes anyway, is to speak to a few different people until you can find someone that is willing to listen and show some genuine kindness and be prepared to give you a break.
If you are not happy speaking with someone in particular you can request to speak to the supervisor, manager etc until someone gives you a gap. Stay very polite and NEVER lose your temper.
Don’t know if that helps at all.
November 27th, 2008 at 11:09 am -
Lel.. said:
Hi Justin
thank you for your article,it has helped me a lot in shedding some light on this issue.we’re behind with 1 month’s instalment and we havent been paying the account on time so the creditors are threatning with reposession and we’re very scared….
so what rights do customers have in such scenarios?
May 4th, 2009 at 3:32 pm -
Debt Counselling said:
Hi Justin, Great article, but left out one more option… apply for debt counselling and you are protected from your creditors take the car back. But you must apply for debt counselling before any judgement.
July 17th, 2009 at 11:36 pm -
Justin Sawyer said:
Ah ok…
Thank you for pointing that out man
I didn’t know that but do now and so do those who visit here and read the comments, thanks again.
July 17th, 2009 at 11:52 pm -
dsa said:
In circumstances like these, apply for a debt consolidation and keep all your assets. It may take 2 to 3 years to get a clearance once all debts are paid up, but at least you keep your assets and your sanity.
September 23rd, 2009 at 10:46 pm -
Karen said:
What happens when the vehicle is on a company name and they want to reposses the vehicles.
April 21st, 2010 at 7:45 pm -
busi said:
Hi
Hi kindly advice on this if your car has been taken away can u negotiate. My ex husband just got a job he was behind with payments(he took the car on the 1 june. I want to help him out but not sure. Pls help.June 4th, 2010 at 6:20 am
