Need advice regarding financial decisions

[TheJudge]

A question about this situation, perhaps some carbies know - is there a way to "give the vehicles back to the bank" - Walk away with nothing but perhaps less/no debt?

The problem generally is that people think buying a car is owning it. Its registered in your name, you possess it but what you really own is debt linked to a thing. So if you handed back a car and said "auction this POS" you'd still be responsible for the remaining capital amount (and interest for as long as you're paying off what remains). I imagine in some instances it might interest a bank if they feel its better to do that than ride it out but ultimately you're still responsible for anything left after the securing asset has been sold off.

 

[AndyPants]

The problem generally is that people think buying a car is owning it. Its registered in your name, you possess it but what you really own is debt linked to a thing. So if you handed back a car and said "auction this POS" you'd still be responsible for the remaining capital amount (and interest for as long as you're paying off what remains). I imagine in some instances it might interest a back if they feel its better to do that than ride it out but ultimately you're still responsible for anything left after the securing asset has been sold off.

Sure - but at least that way you can actually sell it (as was said before, if you cannot settle the outstanding debt at the same time, you may not be able to sell it at all) and the sale price will be deducted from the outstanding debt?

 

[SILTECH786]

WBC wholesales every morning to dealers between 100/150 vehicles before the public comes to purchase anything they have been doing this for numerous years I know of dealers who buy from them,as for they price offerings not sure what to make of it not my forte but great on them to scale on lengths far beyond many could ever reach.

 

[TheJudge]

Sure - but at least that way you can actually sell it (as was said before, if you cannot settle the outstanding debt at the same time, you may not be able to sell it at all) and the sale price will be deducted from the outstanding debt?

For sure, if they allow it then you could hopefully get it off your name. That said short of a proper mechanism for the sale it would probably go to auction and you'll get little back to offset against the capital amount. Its a kak position to be in of course but thats why I still own a 2007 Polo.

When I've had a 'major' service people comment that at least a new car doesn't have that issue, the flip side of that is that you're still paying monthlies. Even at just R2k a month thats R24k you're forking out a year, I paid maybe R8k for cam belt, water pump etc and also changed a few door locks as part of the service. Cars can be a financial trap, had a few friends stuck in the trade in cycle for their luxury cars (ie BMW, Audi etc if you call that luxury), basically hopping from finance deal to finance deal with each model which is fine I guess if its a tax thing.

 

[SJK]

To answer your question @AndyPants, the bank does take it back then sell in on auction. You are then liable for whatever the shortfall/outstanding monies if it sold for less than what you owed at the time. It's a tricky one,

 

[Erohann]

To answer your question @AndyPants, the bank does take it back then sell in on auction. You are then liable for whatever the shortfall/outstanding monies if it sold for less than what you owed at the time. It's a tricky one,

To address the issue for OP, as far as I understand it:
- IF bank will allow him to return; auction; owe money - then carry on with monhtly installments for either a reduced timeline or a reduced amount, it could assist him in getting rid of the vehicle and addressing the financial position.
IF bank expects full outstanding amount to be settled ASAP then well fubar. Its not an option.

 

[HeLLsIM]

I. Would say put more efforts in finding a cheaper but still good mechanic. I own a small shop I Carletonville mostly worked on trucks and Plant but considering to start working on cars and suv's as I have started noticing how car shops are really just abusing customers with crazy ass prices. There is no way 2 cars can cost you R180k in such a short amount of time if your repair shop is worth there salt hell I can probably do your engine, gearbox and suspension and be under R180k.

Just my opinion you can save on monthly cost with insurance etc but the thing still remains why are your repair cost so high. Always remember to take your old replaced parts as well. Even if you trow it away right after but insist they have to give you the parts to try and insure it has been replaced.