What is bad credit financing for cars? Alternatively, if I have bad credit, can I get financing to buy a car?
Answer. While banks may not be willing to give you finance to buy a car there is a way to legitimately buy a car while your credit is bad. Read on for more information on how to buy a car with bad credit.
Buying a car with a bad credit record
Times have been difficult for many of us, especially as an ongoing result of Covid 19 restrictions. The closure of businesses and lockdown restrictions have had an immense effect on the income of so many of us resulting in not always being able to pay our debt in time. This, of course, is now reflected in our credit records and even though times are getting better the banks still refer to your credit score and refuse to help you out with finance.
Living without a car of your own is difficult in South Africa. We travel long distances and have a less-than-optimal public transport system. To be blunt using the public transport system means that you are often placing your life in danger. Unroadworthy taxis, taxi wars, reckless drivers, etc. Then we have trains that are overcrowded and frequented by tsotsi. Walking home from the taxi rank or the train station leaves you wide open to the many loitering criminals who find it so much easier to rob and steal your hard-earned money than it is to go and earn their own money.
In short – owning a car is crucial for any decent hard-working citizen in South Africa. Yet how is it possible to own a car when the system has worked against you and you have somehow ended up with a bad credit record?
Rent to Own a Car – The Solution
No Credit checks!
Blacklisted – no problem!
Debt review – no problem!
Rent-to-own deals have been designed to bypass the strict banking system and enable ordinary people who have encountered credit problems, to finally own a car.
How Rent-to-Own Works
You will enter into an agreement with the dealer who will “rent” a vehicle to you for a fixed period of time which ranges from 48 months to 72 months. Once you have completed the term the car automatically becomes yours and is registered in your name.
The big difference between this deal and a bank deal is that with a bank deal the car is registered in your name from the 1st day. However, the car remains the property of the bank until it has been completely paid for, whereas with a rent-to-own deal the car remains in the dealers’ name and is later transferred to your name. Effectively the only difference is a minor technicality.
Banks require extensive credit checks, a clean credit record, etc. Rent-to-own deals only require proof of income of R15 000 or more. If you are self-employed your business would need to show affordability.
Banks require you to take out insurance policies to cover the car and to install a tracker. With rent-to-own deals, insurance and tracker are already included in your monthly premium so it is one less item to think about.
Some rent-to-own deals may include a service plan and warranty but these are items that are not always standard. Check before you sign a deal to make sure that you are aware of who would be responsible for repairs and maintenance of your vehicle.
Are business vehicles available on rent to own deals?
In short – yes. Providing your business has a monthly turnover of R60 000-00 or shows good affordability, you will be able to rent to own a business vehicle. In fact, many businesses find that even though they would normally qualify for buying a vehicle through the banks, they prefer a rent-to-own vehicle. There are also bakkies and SUVs available on rent-to-own deals.
How to go about finding a rent-to-own vehicle
Renting to own a car has never been easier even if you have bad credit financing for cars. All you need to do is contact Vinece on WhatsApp at 072 339 4623 or email email@example.com and she will advise you on all the best deals that are available for you. She will facilitate the deal for you and ensure that you are satisfied.