(Car South Africa Blacklisted – Updated)
If you are wondering how to buy a car on credit in South Africa if you are blacklisted, then here are a few pointers on how to do it.
- Get your credit report from the credit bureaus in South Africa. This way you will be able to see when you were put on the black list and for what reason.
- If you see that the bad credit you owe is not bad and you can afford to repair it, then you should do so quickly. However, if you’re struggling to pay off the bad debt and need to get a car quickly,there are other routes that you can take to purchase a vehicle.
Buying a Car in South Africa while Blacklisted
There are a number of car dealerships that provide bad credit finance to people who are looking to purchase vehicles. One such place is Easy Cars Rental. Easy Cars Rentals do not require a credit check before they provide you with a loan. However, there are certain terms and conditions that have to be met in order to qualify for the vehicle finance loan.
These include the following:
- Valid drivers licence
- If you are a male – be over 25yrs
- Minimum up-front payment of R15000
- Minimum Monthly payment of R2500pm
- Proof of income
Easy Car Rentals understands that one in four South African’s are on a blacklist. And the only way to improve their credit history is to have the opportunity to purchase a car on credit.
In doing so, they will be able to prove that they are a worthy creditor by ensuring that they pay back their monthly instalments on time. In addition to providing evidence that you are no longer a bad debtor. You will be able to own your car at the end of the process. Therefore you will hopefully never find yourself in a situation where you have bad credit again.
Illegal Black Listing
One of the saddest things in South Africa, is that many people have bad credit illegally by creditors. And as a result, this affects their entire lives. What is worse is that due to the lack of information that people have about being blacklisted, they do not query their credit record.
Many creditors have blacklisted people after their right to do so has expired. This means that they have blacklisted a debtor after three years of them owing the creditor money. The law states that a person can only be put on a blacklist during the three years after their account with a creditor came in to arrears.
This means that should you have owed money to a person four years ago and they blacklist you, they are doing so illegally. Another common occurrence in this country is that many creditors try and claim back their money twice. This is illegal, as you cannot black list someone twice for the same money owing.
Although you feel that there is no hope and you are wondering how to buy a car in South Africa if you have bad credit. There are avenues that you can take.
Firstly, always try and pay off any outstanding debts where you can before acquiring new debt. If you can do that, then you will be in a much better place. If you cannot, then it is essential that you make all of the payments on the vehicle finance. Otherwise your credit rating will look even more dismal that it did before you started. After that, beware of loan sharks that are out to make a quick buck off of you.
Many of these loan sharks will require you to use an asset such as your house as collateral to secure the loan. This is never a good idea as you may end up worse off than you did before.