How To Buy A Car If You Are Blacklisted In South Africa
For consumers attempting to buy almost anything, having a terrible credit history can be a major obstacle, but it can be particularly challenging when trying to buy expensive products like a car or piece of real estate.
There are a variety of reasons why people or businesses cannot obtain financing from a bank. This restricts your ability to own a vehicle, which has an effect on your ability to advance personally and professionally by landing a new job, getting a promotion, or closing a new client.
Steps to take
Think about rent-to-buy! Due to greater approval rates for vehicles than at banks, rent-to-buy is a viable choice for someone on a blacklist. Rent-to-purchase dealers let you borrow a car from them for a set time before you buy it from them. The automobile is also always up for sale.
Before they provide you a loan, Cars Rentals does not demand a credit check. To qualify for the auto finance loan, however, there are a few requirements that must be completed.
They consist of the following:
Legal driving license
Males must be over 25 years old.
A R15,000 minimum upfront deposit
R2500 per month minimum payment
Evidence of income.
How can I obtain financing with a bad credit?
A person with a bad credit history can obtain financing in one of two ways. The first is by making a sizable down payment on the vehicle with the financial institution, as this reduces the risk taken by the institution.As the buyer has liquidity in the car, the finance house encourages them to make timely payments. If the financial institution agrees to provide financing in a particular situation, the interest rate can be unaffordably high. The second choice for those who are blacklisted is to buy a less expensive car outright or to approach car dealerships that provide the so-called “rent-to-own” option for cars, which enables a more flexible payment schedule that can be adjusted or cancelled much easier than traditional finance deals.
What credit rating is required in SA to purchase a car?
You have a solid rating (670 and 739) and are therefore unlikely to break the terms of your finance arrangement. The funding will be authorized. 740 and If your score is 799, financing companies will likely offer you interest rates that are higher than typical.
Can I purchase a car in South Africa without having credit history?
A person with a bad credit history can get financing in two different ways. The first is to put a significant down payment on the vehicle with the financial institution. This large capital investment lowers the risk taken by the finance house and encourages the buyer to make good on their obligations.
