Vehicle Asset Protection Guide

Can You Keep Your Car Under Debt Review?

In many cases, a vehicle can remain part of a consumer's debt-review restructuring while repayments continue under the applicable arrangement. The position depends on the finance agreement, payment status, whether legal proceedings have already commenced, and the consumer's individual circumstances.

By Carolina Guevara Harris (NCRDC3152)•Updated for 2025

How Vehicle Finance Is Treated Under Debt Counselling

In South Africa, vehicle finance is generally governed by installment sale agreements or lease agreements under the National Credit Act. If you enter debt review before the bank serves legal summons or obtains a court order, your vehicle finance agreement can be incorporated directly into your debt review.

Your debt counsellor recalculates the vehicle repayment based on your realistic disposable income. While the monthly instalment is reduced to an affordable amount, the loan term is typically extended to ensure the bank recovers its capital balance in full.

Can My Vehicle Still Be Repossessed?

Once an application for debt review is lodged and Form 17.1 has been issued to the bank, the credit provider is legally prohibited under Section 86(2) and Section 88(3) from instituting independent legal action or enforcing repossession, provided your agreed PDA payments are made on time.

Crucial Timing: The Section 129 Notice Rule

If you have already received a Section 129 default notice from the vehicle financier and formal legal summons has been served prior to applying for debt review, the bank may legally exclude the vehicle from the debt review process under Section 86(2).

Do not wait until a sheriff arrives with a warrant of delivery. Apply as soon as you anticipate difficulty.

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