Black Box Car Finance – Your questions answers
What is Black Box Car Finance?
You may already be familiar with black box car insurance, but black box car finance serves a different purpose while sharing a similar installation method. Black box finance involves the installation of a small device in your chosen vehicle, which connects to the car’s internal computer. Discreetly located beneath the dashboard or within the glove box, these devices establish communication with the finance lender via GPRS.
While black boxes in car insurance track various types of data, black boxes in car finance do not monitor your driving style. Instead, their main function is to help you stay updated with your car finance payments. As long as you make your payments on time and in full each month, you don’t need to take any further action. However, if a payment is missed, the lender will reach out to you, and there’s a possibility that the car may be repossessed.
How does Black Box Car Finance Work?
Step 1: Begin your Car Finance Application
At Motorly, we believe in the importance of arranging your finance before selecting your desired car. Rest assured that applying with us will not have any negative impact on your credit score.
Step 2: Discover the Optimal Financing Option
As a specialized car finance provider, Motorly has privileged access to a diverse range of financing providers, including those offering black-box car finance. We are equipped to identify and present you with the most suitable finance packages available.
Step 3: Locate Your Ideal Vehicle
Rest assured the black box device will be installed in your vehicle at no additional cost.
Where is the Black Box usually fitted?
Once you have been approved for used car finance, you will have the opportunity to acquire your desired car within your budget from a reputable dealer in the UK. It’s important to note that your finance agreement cannot be used for a car purchased from a private seller. Upon securing the finance, the finance company will proceed to install the black box in your chosen vehicle. Typically, the box is fitted discreetly under the dashboard or can be positioned within the glove box. Once all the payments have been successfully completed, some lenders may offer the option to remove the box, or alternatively, allow you to purchase the car and utilize the black box as an immobilizer or tracker.
Is Black Box Car Finance the right option for me?
Black box car finance operates as a type of hire purchase car finance, making it a favourable option for individuals who have encountered challenges in meeting repayment obligations in the past. With this financing method, a black box is installed in your vehicle, allowing your lender to send you timely reminders a few days prior to your payment due date.
In hire purchase (HP) finance agreements, the loan is secured against the vehicle, meaning that the lender retains ownership of the car throughout the duration of the agreement. However, once the agreement is successfully completed and all repayments have been made, the ownership of the car is transferred to you. This marks the conclusion of the contract, and you become the rightful owner of the vehicle.
What is Black Box Car Finance?
Another term commonly used by lenders to refer to black box car finance is “pay as you go car finance.” Pay as you go car finance follows the same underlying principle, wherein customers make monthly repayments through a hire purchase arrangement until the end of the finance term. Similar to black box car finance, pay as you go car finance requires the installation of a black box in your vehicle, which enables the system to send payment reminders prior to your payment due date.