SPREAD THE COST WITH PAY AS YOU GO CAR FINANCE
What is Pay as you go Car Finance?
Pay As You Go car finance (or black box car finance) works around a Hire Purchase agreement, which requires an initial deposit and a set of recurring monthly payments. What makes PAYG car finance from an HP agreement is the inclusion of a black box.
Having a black box on your car is similar to those fitted by insurance companies. Instead of monitoring a driver's behaviour, it acts as a hi-tech payment reminder.
Representative Example
This represents an average of the deals that our customers receive on other vehicles
We are a credit broker and a lender. We can introduce you to a limited number of lenders and their finance products. We will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Lenders will pay commission to us (either a fixed fee or a fixed percentage of the amount you borrow) for introducing you to them, this may be calculated in reference to a variable factor such as (but not limited to) the vehicle age, your credit score and the amount you are borrowing. Different lenders may pay different commissions for such introductions. Offers available to everyone over the age of 18, subject to credit approval.
How does Pay As You Go car finance work?
With Pay As You Go car finance, the vehicle remains the lender's property, and ownership only transfers once the final payment is complete.
Keeping this in mind, it is important to keep on top of payments, and this is where car finance with a black box can help.
Provided for people who usually struggle to obtain finance, Pay As You Go car finance offers an easy solution through a black box installation.
What is black box car finance?
Black box car finance is when a small device is fitted to your car, usually beneath the dash or glovebox. Once installed, the Pay As You Go car finance box will connect with the car's internal computer and communicate with your lender using GPRS functionality.
Black box finance offers you a regular reminder for your repayments. Three days before a monthly payment is due, the green light on the box will turn red and flash. Your lender may also send a text reminder.
Once you have made your payment, you can receive an activation code; this can be keyed into the box to stop the light from flashing. The light will return to its green state for the rest of the month. Come to the end of your PAYG finance agreement - we can remove the black box and transfer ownership to you (providing all payments are complete).
Why do lenders provide black box finance?
Black boxes installed in cars reduce car finance default rates by up to 500%. This allows black box car finance lenders the reassurance to provide car finance for customers who may have been considered too high-risk.
Through PAYG car finance with a black box, you can pay all your monthly payments on time and build a repayment record that will contribute to an improved credit rating. Eventually, this could open the door to mainstream lenders and lower rates.
At Stoneacre, we are professional pay-as-you-go car finance dealers, so finding the correct agreement for you will be easy and hassle-free. Check your eligibility for car finance today and see if you are eligible for black box car finance.
Black Box Car Finance Lenders
At Stoneacre, we broker car finance to help our customers secure the best possible deal for their needs. By installing a black box, you can benefit from added reassurance that you'll receive timely notifications and stay on track with your payments.
One of our black box car finance lenders is Go Car Credit, which offers Hire Purchase finance plans. Having a black box installed may also improve your chances of approval.
Black box finance is often easier to get approved for compared to traditional deals. The black box doesn’t monitor your driving behaviour; it simply sends payment reminders to help you stay on schedule. Browse our website for more information on our lender criteria and black box finance options.
Black Box Car Finance Pros & Cons
What happens if I fail to make a repayment on time?
Most lenders allow a 30-day grace period - this can allow you to keep the car running while you get the money together to make a repayment. If you miss a payment after the grace period - the GPRS will remotely deactivate the vehicle.
Essentially, you won't drive unless you pay (this is why the option is known as pay-as-you-go). The activation code will not be issued, and you won't be able to drive.
Pay as you go Car Finance for Bad Credit
Pay-as-you-go car finance with bad credit is certainly possible. Even with bad credit, driving away with your dream car is not out of the question.
PAYG car finance is for drivers struggling to receive finance through mainstream lenders. With a pay-as-you-go car finance box, you get it installed in your car to alert you about your payment schedule.
In turn, this can reduce your finance costs and increase the likelihood of getting approved for car finance. It is a viable option for people with bad credit scores and can give confidence to car finance lenders who provide the financing deals.
Can black box car finance improve my credit score?
That depends on you. When you install a black box in your car, it remains inactive unless a payment is due or missed. By making your car payments on time, you can improve your credit score, as this shows your responsibility to repaying the finance.
With Go Car Credit, an auto electrician will fit your Payment Reminder System free of charge. As long as each month's payment is made in full and on time, the black box will remain functional, and you won’t even notice it.
However, if you fail to make a payment, you will incur late fees, and your account will fall into arrears, showing that the money owed was not paid on time. This can harm your credit score, as companies will not see you as reliable in repaying your debts.
