Beware of car finance schemes

There are a lot of finance schemes that claim to have answers to problems you have, be very careful of scams

13:35 26 June 2014

What are Car finance Schemes?

 

You might have seen this in the newspaper: “Can’t get finance, we can get you a car with no hassles” or something along the same lines of getting vehicle finance even if you are blacklisted. These car finance schemes sound so good that a lot of consumers with financial issues actually end up falling for them. 

 

How Car finance Schemes Work?

 

• These “car finance” companies tell customers that they have agreements with banks to take over financial obligations that customers might have. This is not only impossible but it is illegal for anyone to transfer their financial obligation to a bank without permission from that bank. 

 

• These companies also tell customers that they can pay the deposit on a car or take over whatever arrears the customer has on a car loan pursuant to signing a “take over” agreement. The customer hands over the car, thinking that his debt to the bank has been settled but that is not what really happened. They end up with no car and still in arrears.

 

• Buyers are asked to make small monthly payments into an account so that the bank can get its money at the same time. Of course this is all bogus because, the car is still the property of the bank until it is paid in full and the buyer is buying it illegally without holding the right to own the car. This is a blatant scam that people have been falling for a while.

 

You can avoid falling victim to car finance schemes by:

 

• Contacting your bank if you have trouble making monthly payments

 

• Buying a car from a reputable dealer and always getting your bank involved.

 

• Be wary of 'quick rescue solutions' as you could end up being in more trouble