Prevent and stop your car being repossessed by ensuring that you make your monthly payments on time every time. The majority of repossessions happen because people are unable to make their monthly payments and have become stuck in a circle of debt from which they can’t escape. All banks, like FNB, Standard Bank, Nedbank and ABSA also have to make ends meet, which means that when you don’t pay they have to repossess your car, home or other good. They go on to sell these at auctions in order to recoup their costs. The laws are on their side and if you don’t pay, they will have their debt collectors come and find out why.
So how do you prevent and stop your car being repossessed if you already know that you’re going to be in financial trouble? The simplest way is to approach the banks with which you have car finance and make them aware of the problem. They may take action, such as registering you as a slow payer. This puts a flag over your name so that you have more opportunity to repay them without having your car repossessed. However, you still will have to pay your debt eventually. ABSA, Standard Bank, FNB and Nedbank all also offer consolidation which allows you to collate all your debt into one loan, to reduce the stress involved in worrying about which one you’ve paid.
If you don’t want your car to end up at one of the banks’ auctions then communication is the only way to save it. Debt collectors want information about why you haven’t paid and how you’re going to. So have that information ready and you should find that the laws protect you from losing your vehicle, as long as you have a plan in mind. It’s important to be knowledgeable about the ways you can prevent and stop your car being repossessed.