Under Debt Review? How to Buy a Car when Blacklisted?
Mobility is a necessity in most people’s lives, and being under debt review can cause a stressful situation when you want to reverse away from being dependent on public transport and park into regaining your own independence by driving your own car.
In South Africa, 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. That is why 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.
Earn-a-Car provides just that, a rent-to-own driving solution so that you can get to behind the wheel of a vehicle you can afford, driving away from the stresses of poor credit history towards the freedom of driving your own car, regardless of your credit score. As long as you can make monthly rental payments and pay an upfront admin fee, Earn-a-Car ensures that you no longer have to be on the lookout for vehicle finance options, you can just enjoy a stress-free journey in one of our new or pre-owned vehicles.
How does the rent-to-own process work?
When you apply for your rent-to-own car, we don’t conduct a credit review for you to receive vehicle financing. Our applications are reviewed within 24 hours, and if you meet the requirements, you will be driving away in your car within two hours from the time Earn-a-Car receives your documentation. With Earn-a-Car’s fleet of 1000 cars, you will find your ideal vehicle that fits your budget. We enjoy helping you to get into gear and get on the road.
With the rent-to-own process, you simply pay your car rental charge monthly for the vehicle lease period, and a portion goes towards buying the car. You can own your perfect car by the end of your vehicle lease period, in as little as 54 months. Because you do not need a credit check, you can qualify much easier. You also get to dodge the high-interest rates associated with car loans.
The amount you pay monthly will vary depending on the car you choose, accessories, etc. Our vehicles are always in a good, roadworthy condition and use of the car is available as soon as the vehicle rental contract is approved. Your monthly payments also include vehicle tracking, immobilisation, and emergency response management. The only time you will have excess liability fees would be in the event of an accident resulting in damages.
It is best to report accidents as soon as they happen, as our accident management guide will help you every step of the way. If your car needs repairs, Earn-a-car will also loan you a replacement vehicle until yours is back on the road. Our Service support service also sets aside a minimum of R250 a month to use towards the servicing of your car. Earn-a-car also provides you with an insurance policy in the event of fire/theft.
The best part is that you can have your vehicle as soon as you want. You may be able to take possession of your car sooner depending on your financial circumstances; it all depends on what you can afford. If you want to buy your car before the agreed-upon finance period ends, a purchase price will be calculated for you, including your cash-back reward. You’ll get at least R300 cash back for every successful payment you make at the end of your contract term. You can put it towards purchasing your vehicle, a down payment on another car, or simply cash it in and treat yourself.
Our rent-to-buy plans also don’t tie you down in a long-term agreement. Our deals are flexible, and you can cancel your agreement by giving one calendar months’ notice. If you can’t make your payment, you can contact us during regular office hours to avoid liability. We will suggest you for credit if you follow all of the necessary procedures and your account is in good standing, and you may purchase another vehicle from Earn-a-car in the future.
Tips for the rent-to-own process from Earn-a-car.
- Ask questions before you even start filling out the application form. The more you know, the easier you can make an informed decision about the solution that best suits your needs.
- Pay off your existing debt as soon as possible. If a vehicle finance business can confirm that you are improving your credit score, they are more likely to accept your application in the future.
- 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 vehicle through depreciation. The newer the model car, the more expensive it will be.
- Speak to an expert for advice. 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.
- If you are having financial troubles, you may be able to trade down to a more affordable vehicle. When trading down a vehicle, there is a procedure that must be followed.
- Avoid having to pay for expensive repairs and maintenance by taking out scratch and dent cover, service plans, and mechanical warranties. Keep in mind that normal wear and tear, servicing and maintenance items such as tyres, brakes etc., are not covered by a warranty claim.
What do you need to apply for a rent-to-own car from Earn-a-car?
- Upfront Admin Fee plus first month’s pro-rata rental. Your administrative charge is non-refundable. However, it can be used to help purchase a vehicle from Earn-a-car at the end of your contract time.
- Proof of income.
- South African citizenship.
- Proof of identification. (ID document, passport, etc.)
- A valid driver’s license
- To live in or near the Gauteng area, a remote location fee is charged if you work or reside outside a radius of either 300km/400km of the Earn-a-car office. Collections less than this distance are charged a smaller fee.
The online approval form will take you less than three minutes to complete. Once you have submitted this form to us and everything is in good order, we will contact you and help you through the next steps of the transaction.