How to prevent your car from being repossessed

Feeling the financial burden, and finding yourself unable to make your monthly vehicle repayment? All is not lost—follow our tips to prevent the bank from taking your car.

Ané Albertse

24 Mar 2023 · 11:32Car Ownership5 min read

The absolute last action a financing firm will take is to repossess a customer's vehicle - the bank or lending institution would much prefer that the car remains in your care, but it does happen. Then, not only will you be car-less, but your credit status will be badly impacted too - if you are unable to make a payment, credit bureaus are informed, and when you reapply for future credit, it will impact your credit score if legal action was taken against you.

The can't take your car if they don't know where it is...(Hiding won't help - talk to your bank.)

I'm really struggling to make that monthly payment - what now?

Honesty and open communication are by far the greatest practises if you find yourself in a financially precarious scenario. WesBank advises that you get in touch with the bank right away to investigate alternatives, so let's take a look at what you can do to prevent repossession, including selling your car if you can't afford it anymore.

1. Make your car payment a priority

Always pay your most important debt first, like your bond and vehicle loans. Establish automated payments or set reminders on your phone to make sure you never forget to make these all-important payments.

2. Notify your lender

It's crucial to let your lender know if you're experiencing problems making payments. The first step in preventing repossession would be to work with your bank to find a solution that benefits both of you.

4. Restructure your debt

Depending on your circumstances, refinancing your loan can be another option to look into. Your monthly payments or interest rate can be reduced as a result!

5. Sell your vehicle

After exhausting all of your financial choices and finding yourself unable to make payments, you could think about selling. This will prevent the car from being repossessed and give you time to pay off the remaining loan balance. Learn how to sell a car with outstanding finance, in this article.

Read all useful advice for selling your car, here.

Try AutoTrader's Instant Offer to sell your car fast.

Buying a car? You could possible bag a bargain - Find out how repossessed car auctions work.

Source: WesBank via MotorPress

Written by Ané Albertse

Ané was bitten by the motoring bug at a very young age. Her mom recalls her sitting in her stroller as a 3-year old, naming every car that came past. She was creating content for various publications within Media24 when AutoTrader nabbed her for good, and is one of the longest-standing members of the AutoTrader team. She prefers dirt roads to tar and SUVs/bakkies to sports cars, but her greatest passion is helping people find the perfect car for their budget, lifestyle, and personality.Read more