Divorce plans hamper vehicle repayment


A Fin24 user is getting a divorce and neither she nor her husband can afford the vehicle finance on their own. She writes:

I need some advice. My husband and I are getting a divorce. The problem is that he purchased the car I am driving for me last year. Neither of us can afford it on our own.

I need to trade it in on a smaller, cheaper car and now need R15 000 to settle the car with the bank.

Any ideas on how I can try and work out a deal with a dealership, because I don't have R15 000 handy. I have tried selling it privately, but it does not seem to be working out at this stage.

READ: Surprised by car finance terms

Douw Leadley of MFC, a division of Nedbank, responds:
We  assist clients who experience financial difficulties to maintain their monthly instalments by placing the vehicle on public auction as STC (subject to confirmation that seller is comfortable with price and conditions).

The client account does not necessarily need to be in arrears.

READ: Car finance and your credit rating

Therefore, we can assist the client by placing the vehicle on auction and try and obtain an offer as close as possible to her settlement amount. Should there be a shortfall, she will be liable for repayment thereof on an arrangement.

We can unfortunately not assist her with a new vehicle. She will have to follow the normal process of purchasing a vehicle from a dealership and apply for finance, where normal credit assessment  will apply.

ALSO READ: Fresh out of debt, needing car finance

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

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