Absa has introduced its "Private Deals" service through Absa-accredited dealerships with trained staff to help you to get a better deal, more safely, when you sell or buy your car privately.
Many South Africans may now be thinking of selling their vehicle or downgrading to a more economical model to keep up with the rising interest rates and the higher cost of petrol.
Although selling or buying privately may be a good option, this market has always had security concerns. Sellers can be taken in by criminals posing as buyers who either steal their cars, or rob them at gunpoint, or defraud them.
Buyers could end up buying a used car that is not roadworthy and seldom have recourse if they later find problems with the car.
Marcel de Klerk, the managing executive of Absa Vehicle and Asset Finance, says the bank has found that its customers are facing greater difficulties in servicing their vehicle debt and are downgrading. He says downgrading your vehicle is one way of getting out of a vehicle loan that is eating into your budget.
De Klerk says the product was launched to help customers to sell their vehicles privately so that they may be less likely to default on their vehicle loan repayments.
"We have seen a high increase in car repayment defaults. The middle market, earning between R16 000 and R17 000 a month, is under severe strain at the moment. Absa is now repossessing up to 1 400 vehicles a month," he says.
To use Absa's Private Deals product, you would take your car to one of the participating dealerships. Staff at the dealership will check your car thoroughly and if it is in good condition, your car will be featured on a dedicated website.
If you already have a buyer for the car but are not comfortable with conducting the sale privately, you can approach one of the participating dealerships to broker the deal for you.
The buyer will have to go through a credit check. If there are repairs necessary on the car, these will be carried out by the dealership at the seller's cost.
De Klerk says the dealer will do the administrative legwork for you, from testing and certification of the car to licensing and registration for the buyer.
The dealership will charge you three percent of the purchase price if the car is sold - of which half is paid by the seller and half is paid by the buyer.
"Considering the impact of the high interest rate on customers, especially on the lower end of the market, this offer can be used to encourage existing customers in financial distress to sell their vehicle, mitigate bad debt and preserve their credit rating," he says.
According to De Klerk, the new product can also help to stimulate a lagging second hand vehicle market.
The Private Deals product was launched at the beginning of May and in that month about 500 cars were sold through Absa-accredited dealerships. This is expected to increase to about 1 000 deals a month nationally, De Klerk says.
To find out more, telephone 0861 727 227, or visit the website: www.p2pcar.co.za