Here are some reasons why a client would voluntarily surrender their vehicle.
If you are unable to meet your car payments when you have lost your income, have been retrenched or are suddenly faced with substantial or unplanned expenses. As soon as you realise that you can no longer afford your repayments, you need to act. If you don't, it will lead to unnecessary calls and visits by external debt collectors, just adding frustrations, and could bring about unnecessary added costs – money that could much rather have been paid towards the account balance.
More about voluntary surrendering
When you voluntarily surrender the financed vehicle, you tell the bank of your predicament not being able to honor the agreement and that you would rather surrender the car to keep unnecessary costs and fees to a minimum. A field agent will then call you and set up an appointment.
The process is voluntary as everything is arranged – instead of waiting for costly debt collectors and sheriffs to trace and take the vehicle from you. If you sell the vehicle for less that the outstanding balance, you must pay the shortfall.
Benefits of voluntary surrendering
o You will eliminate any costs and fees that would normally be paid for a repossession process (tracing, repossession, and legal actions).
o You avoid a non-voluntary repossession – when the bank needs to take a legal route and appoint external debt collectors or repossession agents to collect the vehicle.
o We don't have to trace the whereabouts of the car, which can become costly, inconvenient and stressful.
o By communicating properly, it is easier to find ways to keep unnecessary charges and costs to a minimum.
What is the process when I surrender my vehicle voluntarily?
By law the vehicle must be sold on public auction once it has been uplifted and returned to us. The procedure to be followed thereafter is governed by section 127 of the National Credit Act, 34 of 2005, and can be summarised as follows:
The vehicle will be valued once it has been booked in, and thereafter a notice in terms of section 127(2) will be sent to your chosen address. This notice merely informs you what the vehicle has been valued for.
After 10 days, it is released for auction and sold. The sale proceeds are thereafter credited to your account, and you will be notified of the shortfall amount, if any, by way of a notice in terms of Section 127(5)(b).
Please contact MFC Asset Management on 0860 879 900 to find out more