What is Voluntary Vehicle Surrender?

If as a consumer you can no longer afford to pay for a vehicle which you bought on credit or is no longer interested, Section 127 of the National Credit Act postulates that you have a right to voluntarily surrender the vehicle bought under an instalment sale agreement, secured loan or lease agreement to the credit provider, and the credit provider must sell this vehicle on your behalf to settle the outstanding debt.

It is important to note that: the fact that you are in default means that the use of the section 127 process may have consequences that in some important respects different from the consequences where the process is used by a non-defaulting consumer.

The standard legal procedure for surrendering a vehicle to a credit provider is based on these five steps:

If you have a dispute because you are not satisfied with the price at which your vehicle was sold, then the recourse after attempting to settle the dispute directly with the credit provider would be for you to lodge a dispute directly with the National Consumer Tribunal in terms of section 128 of the National Credit Act, for the sale to be evaluated

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

Talk to an expert

It’s never too late to get help