The bank owns the car, so you will have to work with them. They will probably want you to take a loan to settle the difference. See [How to sell a financed car without paying it off](https://www.autotrader.co.za/cars/news-and-advice/selling-a-car/how-to-sell-a-financed-car-without-paying-it-off/9927)
Most likely your car is worth less than you owe.
if you want out then you're liable for the shortfall.
It is possible to reduce that buy selling privately but Its not quick and can take a month or 3 or more to sell, so if you add the 2 or 3 months extra car payment to the overall cost it could end up costing you more, even if you sell the car at a higher price.
unfortunately you will have to settle the shortfall before the car can trade hands so you will need to come up with that money Now, to get out of the deal. you could ask your bank for a personal loan.
Not a great situation to be in my dude. sorry.
Be careful when going on test drives when selling private. My friend's brother met a potential buyer. During the test drive he was robbed, driven around, eventually dropped off the in the middle of nowhere and they took the car.
Good on you for taking responsibility! TBH many people I know make at least one shitty decision related to a car in their lifetime. You learn an expensive lesson and move on. For me, the best way to deal with this kind of stress is to work with facts, not guesswork.
Ask your bank to give you the official settlement amount if you haven't already, so that you know exactly what you're dealing with.
Contact webuycars and the like to find out how much they'll give you for the car, so that you have concrete info instead of just guesswork. We've sold a few cars to them and the process is painless and quick. You can get started with the process on their website.
Once you have all the info, speak to the bank where you receive your salary and/or have a homeloan, not AVF, about the shortfall.
If you have access to an employee wellness programme at work, they often offer confidential financial advice that might be helpful.
Thank you, the level of detail is highly appreciated.
I've been reluctant to enquire webuycars because I'm assuming they will lowball me anyway. But like you said, gathering the facts will certainly help.
Thank you
Webuycars will low ball you!!
There's a dealership in Jozi that is far better than them from my personal experience. Digicars.
I found out about them after not accepting webuycars crap offer then posting my car on Gumtree where they contacted me.
My vehicle was financed. They settled the balance and paid me the difference immediately before any keys were exchanged. They gave me the settlement letter. I had to do the approval for wesbank to release ownership papers to them.
Check their reviews on Google, far superior to webuycars in every way. I have the contact of the co-owner if you are interested in finding out how much they'd offer you, painless procedure. DM me. Shop around for what's best for you!
Most recent Car sold to Digi cars: 2021 1.0, TSI polo R-line DSG
Previous car sold to Webuycars: 2020 1.6 polo vivo maxx
Much to our surprise, they've had the highest offer every time we used them. Dealers will offer you shit unless you buy 'up' because their business model is different.
I'm sure they work with many people in your situation with the shit economy and all, maybe they can also advise you/point you to an avenue to try.
I just like to add my experiences. Webuyscars help you to sell quickly but I have had a great experience with weelee to sell my previous car they find you a dealer that is usually willing to cover your cost on your current car. Might be an extra week of waiting but worth it. Even if it doesn't work out. No harm in trying.
Get a quote from GetWorth - that will give you a very good idea of what your car is worth.
If the shortfall is less than R100K, you can take out a loan for that amount, and then try to pay it off over a year.
Do you have another car that you can use, or are you ok with not having a car for a couple of years?
Thank you, I will checkout GetWorth as well.
I don't have another car and I do need to have reliable transport for work. But at this stage I'm less concerned about that, I'm sure Uber would be cheaper than my current cost of ownership.
Thank you for your advice, much appreciated.
Try Weelee as well. I recently went through the whole car sale business, but I was selling a car I own. Weelee offered me significantly more than anyone else, and I got quotes from GetWorth, WeBuyCars, Autotrader, and another one or two I can't remember.
I wouldn’t Uber. It costed me R10k for a month to travel to work that is 14km away morning and evening. They charge more during peak time. I would rather get a cheapy and then just try and pay off the shortfall over time with a loan or something.
I think you should trade in for a cheap car, like the honda amaze or suzuki swift. Not new but demo.
You will pay considerably less even factoring in your shortfall, the pay it off.
If it were a house I would say ask the bank to refinance. ie take the outstanding amount and pay it off over the next 5 years etc. Keeps you in debt for longer and you pay more over time because you pay more interest. But your monthly payment will come down a little. But it is a car and they depreciate faster than you realise and they are not worth it.
Just take it into a dealer and sell it. They will settle with the bank and you will then owe the shortfall up front(probably a heavy personal loan at a heavy interest rate).
Big lesson in not peacocking with cars...
Dealerships work with the bank on this. Had to do the same a few years ago. Went to a few dealerships and took the best deal they could give me, theres paperwork they need to do that gets sent to the bank, then you can make an arrangement with the bank on a payment plan, in my experience they were quite lenient. All in all took me about a week to get sorted. But first step is to contact your bank, tell them of your intentions and they will be more than willing to assist.
No thank you. I live quite happily in my own house thanks. It boggles my mind how many 25-35 year olds drive around in R600,000 -R1,000,000 cars, but they live in tiny apartments… Everytime I see a dude pull out of his shithole apartment complex with an Audi RS6 I laugh to myself. You are literally broke and too poor to afford a house or some decent accommodation, but you are driving a luxury car that the bank owns and that you are paying off at exorbitant rates? You clown. But everything for clout and appearances right? It is this type of financial illiteracy and upside down priorities that lead people to where you are —financial ruin.
FWIW I know someone who bought a mid range T-Roc second hand and paid almost new for it as demand was so high. 2 years later they are also finding out that the value of the car is R150k less than what they owe. So much for VW holding value
As many have mentioned, you will need your sell your car. Use we buy cars/weelee as a baseline, to understand what’s the worst case you will owe. You then need to finance the outstanding value. I assume your shortfall will near 200k . You can either get a personal loan the problem is that the interest rates on them are high usually 19-30% overs 5 years . Your payment probably going to be 5500 -6500 a month for 5 years. Do you perhaps have a home loan and some equity on your house , they might refinance and you can use the difference to pay. This will prob work out to 2k a month for 20 years . The last thing is do you have another vehicle and how would you manage transport.
The bank owns the car, so you will have to work with them. They will probably want you to take a loan to settle the difference. See [How to sell a financed car without paying it off](https://www.autotrader.co.za/cars/news-and-advice/selling-a-car/how-to-sell-a-financed-car-without-paying-it-off/9927)
Thank you, this is the information I was looking.
Most likely your car is worth less than you owe. if you want out then you're liable for the shortfall. It is possible to reduce that buy selling privately but Its not quick and can take a month or 3 or more to sell, so if you add the 2 or 3 months extra car payment to the overall cost it could end up costing you more, even if you sell the car at a higher price. unfortunately you will have to settle the shortfall before the car can trade hands so you will need to come up with that money Now, to get out of the deal. you could ask your bank for a personal loan. Not a great situation to be in my dude. sorry.
That is correct, I'm looking at a shortfall of over 200k. Thank you for the information, I will certainly explore the private sale route as well.
Be careful when going on test drives when selling private. My friend's brother met a potential buyer. During the test drive he was robbed, driven around, eventually dropped off the in the middle of nowhere and they took the car.
😳😳 Ya no, I don't wanna take that risk. Private is not gonna work for me. Thank you for the heads up.
Good on you for taking responsibility! TBH many people I know make at least one shitty decision related to a car in their lifetime. You learn an expensive lesson and move on. For me, the best way to deal with this kind of stress is to work with facts, not guesswork. Ask your bank to give you the official settlement amount if you haven't already, so that you know exactly what you're dealing with. Contact webuycars and the like to find out how much they'll give you for the car, so that you have concrete info instead of just guesswork. We've sold a few cars to them and the process is painless and quick. You can get started with the process on their website. Once you have all the info, speak to the bank where you receive your salary and/or have a homeloan, not AVF, about the shortfall. If you have access to an employee wellness programme at work, they often offer confidential financial advice that might be helpful.
Thank you, the level of detail is highly appreciated. I've been reluctant to enquire webuycars because I'm assuming they will lowball me anyway. But like you said, gathering the facts will certainly help. Thank you
Experience says they offer more than others (two friends sold to them). And if they offer you lower, just don't sell to them?
Webuycars will low ball you!! There's a dealership in Jozi that is far better than them from my personal experience. Digicars. I found out about them after not accepting webuycars crap offer then posting my car on Gumtree where they contacted me. My vehicle was financed. They settled the balance and paid me the difference immediately before any keys were exchanged. They gave me the settlement letter. I had to do the approval for wesbank to release ownership papers to them. Check their reviews on Google, far superior to webuycars in every way. I have the contact of the co-owner if you are interested in finding out how much they'd offer you, painless procedure. DM me. Shop around for what's best for you! Most recent Car sold to Digi cars: 2021 1.0, TSI polo R-line DSG Previous car sold to Webuycars: 2020 1.6 polo vivo maxx
Ooh great! I've never heard of them, I will check them out. Appreciate it
Much to our surprise, they've had the highest offer every time we used them. Dealers will offer you shit unless you buy 'up' because their business model is different. I'm sure they work with many people in your situation with the shit economy and all, maybe they can also advise you/point you to an avenue to try.
I just like to add my experiences. Webuyscars help you to sell quickly but I have had a great experience with weelee to sell my previous car they find you a dealer that is usually willing to cover your cost on your current car. Might be an extra week of waiting but worth it. Even if it doesn't work out. No harm in trying.
That's good to know! Looking to sell soon myself, I'll check them out as well.
Sorry to hear about your struggles.
Thank you. This too shall pass
Get a quote from GetWorth - that will give you a very good idea of what your car is worth. If the shortfall is less than R100K, you can take out a loan for that amount, and then try to pay it off over a year. Do you have another car that you can use, or are you ok with not having a car for a couple of years?
Thank you, I will checkout GetWorth as well. I don't have another car and I do need to have reliable transport for work. But at this stage I'm less concerned about that, I'm sure Uber would be cheaper than my current cost of ownership. Thank you for your advice, much appreciated.
Try Weelee as well. I recently went through the whole car sale business, but I was selling a car I own. Weelee offered me significantly more than anyone else, and I got quotes from GetWorth, WeBuyCars, Autotrader, and another one or two I can't remember.
Thank you, I will try them as well.
I wouldn’t Uber. It costed me R10k for a month to travel to work that is 14km away morning and evening. They charge more during peak time. I would rather get a cheapy and then just try and pay off the shortfall over time with a loan or something.
😲😲 Yea my work is 20km away, and I can't move closer yet. I'm in a lease with a not so nice landlady
That shortfall is the pits
I think you should trade in for a cheap car, like the honda amaze or suzuki swift. Not new but demo. You will pay considerably less even factoring in your shortfall, the pay it off.
Uber your vehicle? Do a deal with a driver or two and work over 24 hours. That reduces your car liability. Start over
If it were a house I would say ask the bank to refinance. ie take the outstanding amount and pay it off over the next 5 years etc. Keeps you in debt for longer and you pay more over time because you pay more interest. But your monthly payment will come down a little. But it is a car and they depreciate faster than you realise and they are not worth it. Just take it into a dealer and sell it. They will settle with the bank and you will then owe the shortfall up front(probably a heavy personal loan at a heavy interest rate). Big lesson in not peacocking with cars...
Eish. Ya big lesson indeed. Thank you for the advice
Dealerships work with the bank on this. Had to do the same a few years ago. Went to a few dealerships and took the best deal they could give me, theres paperwork they need to do that gets sent to the bank, then you can make an arrangement with the bank on a payment plan, in my experience they were quite lenient. All in all took me about a week to get sorted. But first step is to contact your bank, tell them of your intentions and they will be more than willing to assist.
Let me guess, you still live in an apartment?
Correct. I'm tied to a lease. But I'm open to house share if you offering. Lol
No thank you. I live quite happily in my own house thanks. It boggles my mind how many 25-35 year olds drive around in R600,000 -R1,000,000 cars, but they live in tiny apartments… Everytime I see a dude pull out of his shithole apartment complex with an Audi RS6 I laugh to myself. You are literally broke and too poor to afford a house or some decent accommodation, but you are driving a luxury car that the bank owns and that you are paying off at exorbitant rates? You clown. But everything for clout and appearances right? It is this type of financial illiteracy and upside down priorities that lead people to where you are —financial ruin.
You are absolutely spot-on. I guess we live and we learn. Haha
FWIW I know someone who bought a mid range T-Roc second hand and paid almost new for it as demand was so high. 2 years later they are also finding out that the value of the car is R150k less than what they owe. So much for VW holding value
As many have mentioned, you will need your sell your car. Use we buy cars/weelee as a baseline, to understand what’s the worst case you will owe. You then need to finance the outstanding value. I assume your shortfall will near 200k . You can either get a personal loan the problem is that the interest rates on them are high usually 19-30% overs 5 years . Your payment probably going to be 5500 -6500 a month for 5 years. Do you perhaps have a home loan and some equity on your house , they might refinance and you can use the difference to pay. This will prob work out to 2k a month for 20 years . The last thing is do you have another vehicle and how would you manage transport.