Repossessed cars in Durban
So when you fail to make a payment on a car typically your car will get repossessed, this is the act when the bank or a dealership sends a repo company to come and seize your vehicle. They get a warrant to come and get your car without your consent as this is in the contract the moment you take up the car lease. Many a time having your car repoed is just a misfortune and it might be just that you been recently been retrenched at your current workplace. So this would put you in a compromising position and you might not escape being blacklisted. But what really happens when they repossess your car? Lets take a look at what really happens.
Your creditor or lessor has the right to repossess your car if you don’t make the payments you agreed to in your leasing agreement. Debtors often believe that when the car went away, so did the loan. This is not so. After repossession, the lender typically auctions off the vehicle if you don’t have adequate funds to cover the balance that you owe on the car. You’re held liable for the difference between the sales price at the auction and your balance. This amount is called a deficiency.
The debtor will send written notice of the deficiency amount, which, along with the charges of auction payment and legal fees, may be much higher than what you owed on your original balance. If you can take action to prevent your vehicle from being repossessed, you’ll avoid serious legal and financial headaches. Before committing to leasing a car, make sure that you can make the payments on time, each and every month. If you’re late on a payment, its advised that you review the promissory note you signed when you first got the car.
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