Looking for blacklisted car finance on Gumtree is looking for trouble because most of those deals are too good to be true. Especially for people who advertise that they offer “No Deposit Vehicle Finance For Blacklisted in South Africa” and say that you will pay starting from R 2000 pm. They will request that you furnish them with your full names, salary slip, physical address, your ID and other information. And be most weary of those who request this information via sms or cellphone as you can’t trace them at all.
By Far, websites and landlines are the safest ways of sending information as those are easily traceable and identifiable. If you would like to find out more about the right way of getting blacklisted car finance please read here.
Blacklisted but need a car? Join the queue! You are not the only person who is in need of a car but are blacklisted. The reason why you don’t get vehicle finance when you’re blacklisted is because you don’t qualify for a loan, just like if you were to borrow money for personal use, vehicle finance is the same as making a loan.
Vehicle finance for blacklisted people works in a different way though, you actually don’t get a loan yourself, you get loaned the car while a company makes a loan on your behalf. They can make a loan on a brand new vehicle, depending on your individual profile looks like, or they can get a second hand vehicle finance. By them loaning you they’re car, we mean that exactly, it’s not your vehicle until you make all the payments are made. So if you want to own the vehicle you will have to apply with as many companies as possible to get a deal that says that you will be able to own the vehicle.
So, do you really qualify for vehicle finance? You don’t. You are just able to get a company to ‘rent’ you one of their vehicles.
Do you still want to go ahead? Here are typical requirements for qualifying to rent-to-own a vehicle.
A rather big deposit. Think 20-25%. If you take the no deposit route just know you will have to pay a lot more over the rental agreement.
A permanent job with a good salary, and the salary has to be deposited into a bank account. You have to produce bank statements that show that your salary has been deposited into it for the previous three months or more.
You should a valid driver’s license.
Be able to currently afford it the loan vehicle.
Despite what you might have initially thought, you are actually able to get finance for a car although you have been blacklisted or have a bad credit record. Many companies are able to get you driving brand new cars like a Volkswagen Polo Vivo or Toyota Yaris even if you are blacklisted (have a bad credit record). We would advise that you not actually get car finance and are blacklisted if you are not able to afford it. This would defeat the purpose of you getting a car. You have to be able to pay the car off.
So how does car finance for blacklisted people work?
Well, you know that you are able to rent a car, now what you able to do is rent a vehicle on a purely rent to buy or rent and buy later deal.
How much will you pay for vehicles on blacklisted finance?
You can get a Polo Vivo for less than R4 000, or how about a Mercedes for less than R8 500 a month? Well, most of these require a big deposit. Think 20% of the value of the vehicle. All these options vary, of course, based on what you qulify for and how your bad credit looks like. You are able to drive a good car if you are able to pay it off, and pay off your debt as well. Interest rates will be higher that with a traditional car finance as you are still a risk to them, and expect to pay between 14% and up to 20%, depending on who you get. Do apply to as many as you can so you can compare companies that provide car finance for bad credit.
There are other rules that apply to who will qualify for car finance. And per usual they include: you may not be on judgement or be a sequestrated individual, you must be fully employed for more than 3 months, you must have a bank account with your salary being deposited into that account, you must be a citizen of South Africa and have an ID. But these are standard requirements that you must fulfill. Please also make sure that when they do an affordability assessment that you are actually able to afford a vehicle at these interest rates. Whether you can get car insurance for this is another story.
I was always against this as when you default on the payments you may lose the car and not be able to get your car again. READ THE TERMS AND CONDITIONS, WELL!!!! This is how you can get a car when you have bad credit or are blacklisted: You “rent” the car.
Basically the supplier avoids giving you a loan but actually “rents” out the car to you. At the end of this “rental” period, where you may also be subject to a balloon payment, you are then able to get the car in your name. Look at it as a rent-to-own as well. Take this only when you are desperate to have a car.
Here are some of the things you will need to get improve your chances of being approved:
- A minimum refundable deposit of R 10 000.00 or R 15 000.00 or applicable category deposit, or a trade-in vehicle to the same value as the cash category deposit
- Valid Drivers License
- Valid ID
- Last 3 months pay slips
- Last 3 months bank statements
- Proof of residence – Water and lights, bank statements or lease agreement
- No criminal record and no previous unresolved issues with Blacklisted Car Finance
Speak to a few service providers and try to get the best terms such as no balloon payments, higher payment amounts, shorter rental period and try to take a smaller car… You do not need a BMW as these cars will generally be more expensive than a humble Corsa Lite.