Have you struggled to get car finance in the past because of bad credit? Mainstream lenders can be reluctant to offer support to those who struggled to keep up with repayments in the past. At Go Car Credit, we want to give people just like you the green light – and black box car finance is one of the options out there that could help you get a new set of wheels.
It’s often easier to get approved for than other traditional loans and – with its handy built-in payment reminders – a black box car may even put you on the road to rebuilding your credit score. We don’t have the same strict criteria as other lenders you may have dealt with in the past – and it’s easy to apply online for a Hire Purchase car in a matter of minutes.
Read on to find out more about how black boxes work, why they’re useful for bad credit, and how to apply with a friendly black box car finance direct lender like Go Car Credit.
49.6% APR Representative – Subject to status and affordability
You may be familiar with the idea of a black box which tracks things like your speed, braking and cornering to show insurers how well you drive and give you a more personalised price. While they may look similar, the black boxes we’re talking about here are purely designed to help you keep your car finance repayments up to date. These boxes don’t track your driving style.
Our black box car finance works by placing a small device in a discreet location within your chosen vehicle – usually the glove box or under the dashboard. As long as your account is up-to-date, you don’t need to do anything. Ensuring your full payment is made on time each month means the device will work continuously, and you will not even notice it is there. We will always contact you before immobilising your vehicle due to non-payment, so you have the opportunity to make payment before your vehicle is immobilised. It is really important to keep your contact details up to date.
After you pay off all the costs and reach the end of your black box finance agreement, the device is taken out, and you’ll own the car outright. The process is simple to set up and won’t stop you enjoying your new ride – but the positives don’t end there.
If you’ve been turned down for car finance or other forms of credit in the past because of a poor credit history, not being able to include your benefits income in your application, or you are self-employed, a black box could put you back in the driver’s seat in two key ways.
First, fitting a black box could improve your chances of having your application accepted. The handy notifications can help you avoid missing your scheduled repayments. This reduces the level of risk to the lender and gives them more confidence in your ability to pay them back.
It’s a win-win situation that makes it easier for you to get your new car on finance to help with your commute, day-to-day tasks or whatever else you might need it for.
Second, those same reminders could help you rebuild your credit score. Paying your bills on time is the most important thing you can do to improve your credit rating. By taking out a black box car finance agreement and keeping up to date with the repayments, you could improve your chances of getting better deals and being accepted for other forms of credit in future.
Your system is fitted by an auto-electrical specialist at no extra cost to you. They’ll also then remove it once you’ve paid off your finance agreement in full. The professionals we work with are fully trained and make sure your system is fitted correctly before you drive away in your new car.
If you fail to make a black box finance payment for whatever reason, you won’t be able to drive the car. It’s not quite as quick as that, however. We get that problems crop up in everyday life, so you’ll have a short grace period in which you can still use it while you try to sort out the missed payment.
If this time passes, and you still haven’t made the repayment, we’ll use the system to deactivate your car and stop you from being able to drive it. Some people worry that this might happen while driving, causing the engine to cut out and leaving them stranded or in danger of getting into an accident. That’s why it’s good to know that we’ll only disable the car when it’s left idle.
We’ll also send you text reminders along the way to give you every possible chance of keeping your new car.
Another phrase you may see used to describe black box car finance is pay as you go car finance. We think this term is misleading. It’s usually used to describe services that you pay for as and when you need them — but without any obligation to buy any more credit for if you don’t want to. A common example is getting credit to make calls and texts for your mobile phone.
By taking on a car finance agreement over a set period, you can’t just stop making payments like you would with other pay as you go services. Doing so could cause late payment charges, put your account into arrears and harm your credit profile. We recommend that you be cautious when looking at ‘pay as you go’ car finance options, as they may not be quite what you expect them to be. You can read more on our ‘pay as you go’ car finance blog post.
All our black box car deals are offered via Hire Purchase. You’ll make monthly payments to hire a car for an agreed length of time until you’ve paid enough to own it outright. The loan is secured by the car itself, which means we can repossess it if you can’t keep up the repayments – though we’ll do our best to create a payment plan that’s manageable for you moving forward.
Use our bad credit car finance calculator to find out what your repayments could be based on how much you want to borrow and for how long.
We also share regular money management tips on our car finance blog to help improve your chances of being accepted and getting a better deal!
This is to make sure you can safely afford your loan amount and make the repayments each month.
We look at your overall situation on an individual basis and our criteria is less strict than many other lenders, so we could get you approved even when you have been refused elsewhere.
Your application is reviewed by one of our specialist Underwriters to give you a decision as quickly as possible.
You can follow this progress on your application tracker link, which is provided after you make an application with us online.
We don’t think bad credit should hold you back from getting the new car you need. As one of the UK’s specialist black box car finance lenders, we could say yes – even if you have a low credit score, county court judgements (CCJs), defaults, payment arrears, an IVA agreement or have previously declared bankruptcy.
Here are a handful of reasons why we could be the perfect alternative provider for you:
You can choose your ideal used vehicle from any of the dealerships in our UK network, including Newcastle, Leeds, Glasgow, Portsmouth or Manchester. With a new car being a serious investment, it’s perfectly normal to have questions. Feel free to call our team on 01925 696 373 for more information on how it all works.
There are situations where we may ask you for a deposit. Offering one can be a helpful way to boost the likelihood that we’ll approve your application. We do, however, also offer no deposit car finance if you don’t have the spare cash or time to save up.
We aim to make the process of getting a new car as straightforward as possible. If you’re still unsure, read more on how our car finance works.
Once you’re ready to go ahead, get the wheels in motion by filling out our short online application form. If you meet our approval criteria, we’ll give you a provisional credit limit and help you find your perfect new car through one of our approved dealerships.
The final step is to sign the paperwork and drive away!