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Have you heard about the ‘Black Box’ and not sure what it is? Does this put you off getting car finance? This article is to help explain the purpose of the device and how it can help you on the road to re-establishing your credit.
The ‘Black Box’ can be seen as something negative but this can be due to not understanding its real purpose. The system fitted into all of the cars we finance is called a Payment Reminder System (PRS). The Payment Reminder System helps remind you when your repayments are due so you can ensure you stay on track with your loan and help repair and re-establish your credit.
The Payment Reminder System (black box) is there purely to help you keep your repayments up to date and it does not affect your car. It works by placing a small discreet black box in your newly purchased car that is not visible in any way. Your Payment Reminder System will be fitted by an automotive specialist before you drive away your new car and then removed by them once your finance agreement has been paid in full.
Why do lenders use a ‘Black Box’?
This gives lenders the confidence to provide car finance for customers who may have previously been considered too high-risk and have a history of missed payments. The ‘Black Box’ has shown to reduce default rates amongst high risk customers.
76% of our customers believe the Payment Reminder System has helped them keep on track with their repayments.
72% of our customers say that the Payment Reminder System would not be put off getting another finance agreement with us.
*Survey results from 01/05/2019 to 30/09/2019
Is the Black box the same as the one they use for insurance?
No – the purpose is not the same. The ‘black box’ installed by insurance companies looks at your driving style and measures things like braking and speed. The Payment Reminder System does not monitor the way you drive. The device is only there to help you keep your repayments up to date, it doesn’t affect your car, nor does it monitor the way you drive.
How Go Car Credit can help you secure car finance
Here at Go Car Credit we look at people differently and we believe that by using the Payment Reminder System for people with impaired credit is a good thing as it allows all our customers to get a car to help them with day-to-day errands and the daily commute. If you’re considering car finance you can call us on 01925 696 373 and our specialists team can take you through the process.