In South Africa most of us need a car to get around. Not all of us can afford to pay cash for our vehicles so we need to apply to borrow money from a bank or some other credit provider. That’s all very well but what happens when you need to buy a car but have a bad credit record and find yourself blacklisted? Is it still possible to qualify for finance? Well the usual method may be difficult but there are other options available to you for borrowing the money needed to buy a new vehicle, read on.
Having a bad credit record is nothing to be ashamed of. So many people find themselves in financial difficulty at some point in their lives and can easily end up being blacklisted. When this happens it seems as though the banks are no longer prepared to help someone with a car loan as they are considered a bad risk to lend money to. But the bank is not the only place to find finance for a car there are in fact a few other options to consider for those who may feel desperate.
Types Of Car Finance Available For Blacklisted People
First of all it will depend on the type of vehicle you wish to buy. For instance if you are looking at cheap second hand cars in the R3,000.00 – R10,000.00 price range then it may be possible to apply for and qualify for a micro loan. This kind of finance can be obtained from micro lending companies usually having offices situated in and around the main shopping area’s of a town or city. Office’s can also be located at shopping malls.
Have a look around your local shopping area or in the local newspaper for adverts of micro lending companies that may be able to help you with a small car loan if you are in the market for one of the cheaper vehicles on offer. A lot of these types of credit providers are not so focused on your poor credit history but more on your current financial standing and ability to be able to pay back the money you wish to borrow.
If the car you want to purchase is a more expensive model then a micro loan is not going to cover it but you still have a few options.
One of these options is to find a vehicle you may be interested in buying from a dealer that offers in-house finance themselves. This means that not only will the dealer sell you the vehicle but will also be willing to lend you the money to buy it. Of course there will be certain criteria that you will have to match and some dealers will be reluctant if you have a bad credit record but shop around in this regard as you will find some that are willing to lend the money to people for the purchase of a new vehicle even if they have been blacklisted previously.
Another possible solution to your vehicle financing woes could be to approach a close friend or family member who will be willing to co-sign a loan agreement with you. This means that they will be prepared to take responsibility for the funds borrowed. Be careful with this though, most close friendships or families are not worth breaking up over money matters and if you default on payments or get into a situation where you cannot afford to pay back the money you borrowed then the responsibility for re-payments falls squarely on the shoulders of your co-signer.
Similarly you could approach a family member or friend for a personal loan to pay for a vehicle. Also, not really advised by us but still an option if you know someone close that is wealthy enough to lend you the cash for your new wheels. In this case it would be worth while getting a lawyer to draw up a loan agreement between the two of you and having you both sign the contract agreement.
No matter how bad your financial history looks on record or who may have put you on the so-called blacklist in South Africa there are always ways and means of borrowing the money you need to buy your transport. Do your research on the above suggestions and you could just be surprised on how accessible certain motor car finance solutions are for people who are blacklisted or find themselves with a not too impressive financial record, you maybe behind the wheel of your new vehicle quicker than you think.