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Introduction to How to Buy a Car with Bad Credit

So you went through a bad patch in your life, you possibly could not make some monthly payments, and now your credit score has been affected and the banks do not want to grant you finance. You are in a bad situation and need to buy a car. This is how to buy a car with bad credit.

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Owning a car is necessary for many South Africans, offering them the freedom to commute, explore, and go about daily activities quickly. South Africa does not have a modern public transport system in all areas and as a result, it is beneficial to have your mode of transport. However, acquiring a car can be challenging, especially for those with a bad credit history.

Traditional financing options often require a good credit score, making it difficult for individuals with a less-than-perfect credit rating to secure a vehicle loan. Fortunately, there is a solution: rent-to-own car deals. In this article, we will delve into the world of rent-to-own car deals in South Africa and how they can help you get a car even with bad credit.

Understanding Rent-to-Own Car Deals

Rent-to-own car deals, also known as “No Finance Car Deals” or “Rent-to-Buy agreements”, provide an alternative financing option for individuals who may not qualify for traditional car loans due to bad credit. These agreements allow you to rent a vehicle for a specific period with the option to purchase it at the end of the term.

Essentially, you are leasing the car with the intention of owning it in the future. The vehicle remains registered in the name of the car dealer until the end of the agreement term and all provisions of the agreement have been met. The vehicle is then transferred into your name.

Benefits of Rent-to-Own Car Deals

  1. Access to a Vehicle: The primary advantage of rent-to-own car deals is that they provide almost instant access to a vehicle, regardless of your credit history. This means you can overcome the hurdles associated with obtaining traditional financing and enjoy the freedom and convenience of having your own car.
  2. Improved Credit History: Rent-to-own car deals offer an opportunity to improve your credit history. By making regular payments on time, you can demonstrate your ability to manage credit responsibly. As a result, your credit score may improve, increasing your chances of securing more favorable financing options in the future.
  3. Flexible Terms: Rent-to-own car deals often come with flexible terms, allowing you to select a vehicle that suits your needs and budget. When your circumstances change during the agreement period and you discover that you need to change your vehicle there is no problem. The dealer simply takes the vehicle back and you choose another vehicle to suit your current needs..
  4. Vehicle Selection: Unlike traditional financing options that may limit your vehicle choices based on your creditworthiness, rent-to-own car deals provide more flexibility in selecting a car. You can choose from a variety of makes and models that are available through the rent-to-own program.

Applying for a Rent-to-Own Car Deal

  1. Research and Find a Reputable Provider: Start by researching reputable rent-to-own car providers in South Africa. Look for companies with a solid track record, positive customer reviews, and transparent terms and conditions.
  2. Determine Your Budget: Assess your financial situation and determine how much you can pay each month for the vehicle. Remember that extra expenses such as insurance and vehicle tracker are primarily included in your rent-to-own car deal. Check with your agent as to what is included or excluded before signing your contract.
  3. Choose the Right Vehicle: Select a vehicle that suits your needs and falls within your budget. Consider factors such as fuel efficiency, maintenance costs, and the vehicle’s overall condition.
  4. Submit an Application: Complete the application process, which typically involves providing personal information, proof of income, and identification documents. Typically you would require a salary of R15000pm, a deposit that ranges from R12k to R30k depending on the vehicle you choose. You would need to submit a copy of your ID and drivers license. 3 Months bank statements and 3 months payslips.
  5. Review the Agreement: Carefully review the terms and conditions of the rent-to-own agreement, including the duration of the lease, monthly payments, and the option to purchase the vehicle at the end of the term. Seek clarification on any points that are unclear to ensure you have a full understanding of the agreement. Take note that most Rent-to-own vehicle dealers do not allow the vehicles to be used for the purpose of carrying passengers for gain. NO UBER OR BOLT etc.
  6. Sign the Agreement and Make Payments: Once you are satisfied with the terms, sign the rent-to-own agreement, pay your deposit and drive away in your car. Always ensure that you drive responsibly.


Rent-to-own car deals offer an excellent opportunity for individuals in South Africa with bad credit to obtain a vehicle. By providing access to a car and the chance to improve your credit history, these agreements bridge the gap between traditional financing options and the need for reliable transportation.

When exploring rent-to-own car deals, research reputable providers, understand the terms and conditions, and choose a vehicle that fits your budget and requirements. With the right approach, you can get a car even with bad credit, ensuring you have the means to navigate daily life with convenience and independence.

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How to Buy a Car with Bad Credit

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