Being under debt review is stressful. In South African, you will need to manage the debt review process and manage other uncontrollable factors such as the low economic outlook, rising living costs and high levels of unemployment. If you are blacklisted, you won’t be able to enter into any new debt. It is possible, however, to get blacklisted car finance at a very high interest rate, or you have the option to rent-to-own a car.
How to Buy a Car When You’re Under Debt Review
❖ What you should do:
- People under debt review who do not qualify for finance should consider the rent-to-buy car finance option as a more affordable way to get a car. You choose the car you want and get the benefits of ownership without having to pay excessive interest rates.
- Show the finance company that you will be able to pay for the car on a monthly basis. If you have a job or own a home, it already benefits your finance application.
- Make sure that you deal with a trustworthy financier. This person will help you get vehicle finance even if you are under debt review.
- Avoid having to pay for expensive repairs and maintenance by taking out scratch and dent cover, service plans and mechanical warranties.
What to Avoid When You’re Under Debt Review
❖ What you shouldn’t do:
- Pay off your existing debt as soon as possible. Vehicle finance companies are more likely to accept your application if the company is able to establish that you are trying to improve your credit score.
- Do not enter into a finance plan that you cannot commit to. You will have a limited loan amount to spend, but if you choose the correct finance plan (like rent-to-own), you will get an even better deal.
- Do not choose an expensive car, especially one that has a high petrol consumption. If you choose an older model car that is light on petrol, you avoid losing the value of a car through depreciation. The newer the model car, the more expensive it will be.
- If you are determined to be of good standing and able to pay the monthly rental on a car, you will reach your goals with dedication and guidance. Speak to an expert for advice.
Why Choose Earn-a-Car for Car Financing when You are under Debt Review?
Blacklisted or struggling to get vehicle finance? Earn-a-Car has a simple rent-to-own solution for you. Earn-a-Car is one of the best companies to go to when you are looking to finance a car. We have reliable pre-owned cars for people that are blacklisted.