Vehicle finance for blacklisted people in South Africa is available online. If you need a car but have a bad credit record due to previous financial problems. It’s obtainable through online finance companies and application forms are free and easy to fill out.
It only takes a few minutes to apply. You will usually know with most applications if you’ve been approved for the vehicle finance within a 24 hour period.
Times are changing which is going to help you if you have previously had some financial trouble. And now need to get a car loan or finance for almost any other vehicle.
If you are looking for vehicle finance but you’re blacklisted. Or if you have a bit of a poor credit record there is no need to feel discouraged.
Because regardless of your financial history there are car loans and other vehicle finance packages available to just about anybody.
If you get approval for car finance it will give you the opportunity to have your bad credit record restored. Also providing you with the money for your car or vehicle to transport you where you need to be.
Vehicle Finance For Blacklisted Companies
There are many vehicle finance companies that claim to help people who are on the blacklist. Although you need to be a little cautious when choosing the correct company for your needs.
Find a provider that lists various customer testimonials of previous happy clients. Preferably from blacklisted people that have bought a car using this type of finance. Ask many questions before you even go ahead and fill in the application form for vehicle finance.
Ways to Borrow Money for a Car
One of the most manageable ways to borrow money for a car is to approach financial credit providers and see what sort of vehicle finance they offer.
Vehicle finance is something that many people need, and buying a safe car is not cheap. There are options for everyone, depending on their financial situation.
Banks are a good place to start because they often have their own programmes. That can provide loans to buy the car you want.
Interest rates vary between banks so it is best to approach more than one to try and find the best deal.
Banks will require you to provide them with certain information and most banks will only consider you if you have a good credit history. And will normally develop payments based on your monthly income and banking history with the institution.
If you are looking to get vehicle finance while under administration, see here: Under Administration? More Loans are a Bad Idea
Other Ways to Get Vehicle Finance if you are Blacklisted
If you are blacklisted there are also other ways to borrow money for a car.
The best way to increase your chance of getting loans from financial credit providers is to show them that you have a clear plan. And a budget for paying the money back. Also that you will be able to pay off your already existing debt.
Consolidation loans are a good way to make your credit record more appealing. Because they can be used to cover a number of smaller debts.
They ensure that you get a better and more balanced interest rate in South Africa. There are also a number of rent to own payment methods, where you pay a monthly fee to drive a car. Which you will eventually own.
There are many financial credit providers who deal with vehicle finance. Not all of these will suit to your needs. So it is worth investigating which of the ways to borrow money for a car is best for you.
Recommended Banks for Affordable Vehicle Finance
Recommended banks for affordable vehicle finance tend to be completely subjective.
Reason being vehicle finance depends on a number of factors. Therefore one person may receive a better interest rate than another person due to these factors.
Furthermore, when you go and purchase a car from a dealership, the dealerships tend to have banks which they are aligned to. And which they believe offer the best vehicle finance for their clients.
Therefore if you ask for a recommendation on a bank for affordable motor finance, you should keep the above in mind.
However if you want to investigate further the banks for affordable vehicle finance, you should definitely do an online search of the various banks available to you.
There are several banks that offer loans to pay for a car. Although it’s not all banks in South Africa that give vehicle finance for blacklisted people.
SA Banks Include:
- Capitec Bank
- Standard Bank
- African Bank
See the various bank websites for vehicle finance interest rates in South Africa.
FNB for example have a dedicated link on their website for vehicle finance. Where they have provided a lot of information regarding what you need to do before buying a car.
In addition to this, they have a dedicated section where they explain the two main types of financing options available to current and prospective clients of FNB.
These two options are:
- Instalment sale agreements
- Lease sale agreement
Instalment Sale Agreement
An instalment sale agreement is when a vehicle is purchased from a dealer or private seller. So the bank then owns the car until you finish paying off the instalments due.
However, the interest rates in this type of financing can either be fixed or variable in nature. So depending on you income this may be a big factor when purchasing a vehicle.
Lease Sale Agreement
A lease sale agreement allows an individual to rent a car from the financier with the option of purchasing at the end of the agreement.
This is among the ways to get vehicle finance for blacklisted people in South Africa. From certain credit providers.
What is especially good about this second option is that you enjoy the use of the car without complete ownership of the vehicle. Furthermore, more often than not these lease payments are tax deductable.
If you are looking to purchase a motor car and are looking for the best financing options, the best thing is to do an online search.
Find out what each bank is offering or go and visit the banks and speak to a personal banker. Remember that motor vehicle finance is subjective among banks for affordable vehicle finance.
All in all make sure you do your research and tread carefully. Educate yourself.
The more you know about the lending companies offering loans for new and used vehicles. The better chance you give yourself at getting the correct type of vehicle finance to suit you.
Not all credit providers in South Africa offer vehicle finance for blacklisted people. So you have to do the research to see how you can qualify.
A decent source of information can also be found Here.
This may be of some interest to you as well: Peer to Peer Lending