Need Your Advice Regarding Repossession

StMichael SG

I have a Suzuki Swift (COE car) whose COE will be expiring in 2012. I still owe the finance company $23k. I am very sure I cannot sell it as it's at negative equity (I mean, which dealer will give me $23k for it?). I'm thinking of letting the company repossess the car and have spoken to the CSO.

She told me I have to stop paying for 2 months before they send the towing company. Then I may have to wait another few months before they take the car to an auction, after which their lawyers will serve a letter of demand for the rest of the money. I'll have to negotiate the payment in instalments (if agreeable with their lawyers) then.

The above procedures are compounded by the fact that I teach in China and would only return about once a year. I want to hear about other's experiences with repossession and perhaps some advice about the possible repercussions.

LCL SG

At the end of the day, u will still have to pay a lump sum as the auction price will be ridiculous low for a repo car.

StMichael SG

My friend did not pay a lump sum. His car was repossessed. He managed to negotiate with the lawyers to repay SGD200 a month. I suspect his credit rating would have taken a very hard hit though.

seow SG

I heard if a person scraps his car, he gets back his COE $$.

StMichael SG

To do that, I need the original title to the car. That happens to be with the mortgage company, as the car is under mortgage. And they will not release the title unless the loan is paid off.

choppers SG

Y not them repossessed?

Do you know that you will be incurring more losses such as legal fees, repossession fees, storage fees, nterest accumulation etc. u should sell your car to a dealer.. at least for scrap value. then negotiate with the bank if cannot then no choice.

endless373 SG

If you willing to scrap your car to get back the scrap paper value, I’m sure most dealer will be willing to take in your car at paper value (or close to paper value).

StMichael SG

There is no scrap value here - it's a COE car! And how does the dealer take over the car when the finance company refuse to release the title? They will not release unless the outstanding is paid in full!

memorieschc SG

In the past, I have encountered cases whereby pple returned the vehicle to the finance company. Go back to the person who handled your finance papers. Tell them that u want to return the vehicle to them. Of cos this may comes with a price. And prepare a handing-taking over paper if they agreed. This document will be very crucial to u as it will prove that the vehicle is in the finance company’s possession with effect from when.

choppers SG

coe car has scrap value.. scrap here means.. unused value of coe..

eg:

your car 12 yrs old if your coe is 10 yrs.. means another 8 years.. say your coe is 20k.. then you will be refunded 8/10 of 20k which is 16k of unused coe value.

choppers SG

StMichael SG

I've spoken to the finance company. They told me they don't take back a vehicle unless I've defaulted for 2 months, whereupon they'll take the necessary actions. Doesn't seem to be like what you mentioned.