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.
Is your credit rating affecting your ability to get car finance?
For UK drivers with poor credit ratings, securing a car finance agreement can sometimes be a challenge. But a new solution has emerged in the form of Black Box Car Finance. This innovative financing option uses technology to assess a driver’s creditworthiness and offer loans to those who may have been denied by traditional lenders. But what exactly is black box car finance, and how does it work? Read on to learn more about it and its potential benefits.
Black box car finance is a type of car finance that uses technology to assess a driver’s creditworthiness. The lender installs a small device, known as a black box into the car. The device then monitors the driver’s behaviour. This data is then used to calculate a driver’s credit score and determine whether they are eligible for finance.
The use of technology to assess a driver’s creditworthiness means that black-box car finance providers can offer loans to drivers with poor credit ratings who might otherwise struggle to secure traditional car finance. The black box tracks the driver’s behaviour and ensures they are meeting their repayments on time. This can help to build their credit score. Black Box Car Finance provides a valuable opportunity for those with poor credit to improve their financial situation and secure the car they need.
Increased access to car finance for those with poor credit ratings
With the use of technology to assess a driver’s creditworthiness, black-box car finance companies can offer loans to those who might have been denied by traditional lenders.
Opportunity to improve credit score by making repayments on time
One of the key benefits of black box car finance is the opportunity for drivers to improve their credit scores. By making repayments on time, drivers can demonstrate their creditworthiness. This can potentially boost their financial standing.
Flexible repayment options to suit individual circumstances
Black box car finance also offers greater flexibility regarding repayment options. With the ability to tailor repayments to personal circumstances, drivers can choose a repayment plan that works for them and their budget.
Real-time monitoring of vehicle usage and behaviour
The black box installed in the car allows lenders to track usage and behaviour, providing valuable insights into a driver’s creditworthiness.
No upfront deposit required
Finally, black box car finance typically does not require an upfront deposit, making it a more accessible option for those with limited financial resources. With the ability to finance the entire cost of a vehicle, black box car finance offers a convenient solution for those in need of car finance.
Who is eligible for black box car finance?
Black box car finance is typically available to drivers with poor credit ratings who struggle to secure traditional car finance.
Is there a minimum credit score required?
This varies between providers, but many black box car finance companies do not have a minimum credit score requirement.
Are there any fees involved?
There may be fees involved with black boxes car finance, such as set-up fees or ongoing monitoring fees. It’s important to carefully read the terms and conditions before signing up for any finance agreement.
Is my driving behaviour monitored with a black box?
Yes, the black box installed in your vehicle monitors your driving behaviour and usage, which is used to assess your creditworthiness and determine your repayments.
Can I change the car I finance through black box finance?
This depends on the terms and conditions of your finance agreement, but some black box car finance providers do allow you to switch vehicles once your finance agreement has ended.
Black Box Car Finance represents a unique opportunity for UK drivers with poor credit ratings to secure the car finance they need and potentially improve their financial situation. While it’s important to thoroughly review the terms and conditions and consider all options, black box car finance could be the answer for those who have struggled with traditional car finance in the past.
Ready to apply for Car Finance? Go to the Black Box Car Finance page to find out more.
Struggling to get Car Finance? Looking for an alternative solution?
If you have not been able to get car finance in the past because of bad credit history, your options to get a new car can be limited. Larger lenders can be unwilling to offer finance solutions for those with a poor credit history. However, you still have options.
What exactly is Black Box Car Finance?
Black Box Car Finance, sometimes referred to as ‘Pay as you Go Car Finance’, is a solution for drivers who would struggle to otherwise get behind the wheels of a new car.
A small box is discreetly fitted into the car by a qualified technician. As long as you keep up the payments on your car you will get full access to drive it.
Near the end of each month, you’ll be reminded that your payment is due. Once your payment has been made, you will be sent the activation code. This can be entered into the box and will grant you full access to drive the car for the month.
When you get to the end of your payment agreement, the black box will be removed. The ownership of the car will be transferred to you (assuming all payments have been made).
What happens if I miss a payment?
Should you miss a payment, you will not receive your activation code and you will not be able to drive the car. However, most lenders will allow up to 30 days to sort out your payment and will keep the car running in the meantime.
If you still fail to make your payments after that, the car will be deactivated remotely and you will not be able to drive the car.
What are the advantages?
By getting a black box installed, lenders will be more prepared to provide finance to those with a poor credit history. Because of this, it decreases car finance costs.
It is a viable financial option for those with poor credit scores and can make it easier to get approved.
At Motorly, we aim to help as many people as we can, even if their history isn’t perfect. Box Car Finance offers can help people like you finance their next car
To find out more to go to Motorly Black Box Car Finance Page.