Take note: Five tips to avoid the dreaded vehicle ‘repo’

Having your vehicle repossessed, while the last thing a banking house will do, unfortunately, comes as an aspect of life some South Africans will be subjected to at some stage.

Although not expected to have the same intensity as portrayed on American television shows, South Africa’s current economic position and rising costs of living has been such that taking leave of one’s vehicle, better known as vehicle repossession or simply “vehicle repo”, has become a reality for some.

According to WesBank’s Head of Marketing and Communication, Lebogang Gaoaketse, missed vehicle payments, while understandable, can be avoided by means of initiating a payment restructuring sooner than later.

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“A vehicle represents more than a mode of transport to people. It is a symbol of their success and a means to mobility freedom to come and go as you please. As such, having one’s car repossessed is a traumatic experience,” Gaoaketse said.

She added, “Customers, who can’t meet their vehicle repayment are encouraged to contact the bank as soon as possible to discuss potential alternative payment arrangements. Defaults on payments will always result in a consultation between the bank and the customer”.

In order to avoid the dreaded “repo” becoming a reality, the WesBank has provided the five tips South Africans should take into consideration.

Payments on time

It advises, “Set up automatic payments or reminders to ensure that you don’t miss any payments”.

Communication is gold

“If you are having trouble making payments, it’s important to communicate with your lender. Together, you can explore a solution that works for both of you as the first step to you keeping your car.”

Pay the important ones first

“If you’re struggling to make payments on all of your bills, it’s important to prioritise your payments. Pay your essential bills first, such as rent, utilities, and car repayments.”

Loan refinancing

“Refinancing your loan may be another option to investigate, depending on your situation. This could help to lower your monthly payments or get a lower interest rate.”

Vehicle downgrade

While arguably not something many South African would want to do, a “downgrade” to a smaller or cheaper vehicle, when push comes to shove, might be the best way of a potential repo.

In your drive, not in our garage

“It is important for customers to understand that creditors will only repossess a vehicle as a last resort if no other payment arrangement can be made. We always investigate and discuss all options available to our customers so they can make the repayments,” Gaoaketse says.

“It really is in everyone’s favour, at the end of the day, to keep the car in the customer’s garage, rather than on our auction floor.”

For more information on how to restructure your payments in order to avoid a vehicle repo, visit the website, www.wesbank.co.za.