As we approach the end of the year, many are feeling the excitement of year – end bonuses. Before you walk into a dealership and buy that car of your dreams, you must hear Mandla’s story.

The Temptation and the Trap

Mandla, a 50-year-old Deputy Director at a government department, already had a home and a fully paid-up car. But in July 2023, he gave in to the desire for a luxury upgrade, buying a second-hand GLC Mercedes for R673,885

His dream car came in with a R13,208 monthly instalment. He could not afford the instalments!

The Painful Surrender
By September 2024, Mandla faced reality and made the difficult decision of voluntary surrender. He handed the keys back to Mercedes-Benz, hoping to settle the remaining shortfall and move on.

The outcome was catastrophic:

1. The car’s estimated market value at the time was R520,000.
2. The finance house sold the car at auction for only R300,000.
3. This sale should have left him with a shortfall of around R239,000 (R520k – R300k,

The R777,907 Ghost Debt
The true nightmare began when Mandla asked ThuthukaSA to help him to get out of debt. We downloaded his credit report and it showed a staggering R777 907 outstanding balance.

That is more than R100,000 over the original price he paid!

The credit report indicates:
· A monthly instalment of R13,208.
· An OVERDUE amount of R40,763.
· There is NO INDICATION that the car had been handed back.

We have referred Mandla to the Credit Ombudsman and the National Credit Regulator as the loan might have been given to him recklessly. We hope he is able to get assistance because he could end up losing his home, if he is not able to address the matter.

Before you buy your dream car, we recommend that you read this newsletter The DOs & DON’Ts of buying a CAR

Do not let your dream car destroy your future
If you own a car and you want to get cash out of your car or reduce your monthly instalments, contact us