How to Get Car Finance with Bad Credit in South Africa

If you have a bad credit score, it can be very challenging to get a car loan in South Africa. However, there are lenders that offer car finance to people with poor credit scores in South Africa. There are various ways you can qualify for car finance like making a deposit, joint car finance, or applying for preapproval. In this article, we will show you how you can get car finance with bad credit, loan providers, and how to get one.

How to Get Car Finance with Bad Credit

Getting car finance with bad credit is challenging. It is possible to get one through. This is how you can get car finance with bad credit.

  • Make a deposit. You need to make a deposit towards car finance to show the lender that you are serious. It is advisable to make at least a 10% deposit of the car’s value.
  • Apply for preapproval. When you pre-apply with a lender before visiting the dealership will help you get better rates especially when you have a bad credit score.
  • Compare different lenders. You need to shop around and compare different South African lenders. Consider their rates, loan terms and the repayment period.
  • Check credit report. You need to first check your credit report because a small mistake can cost you a lot. You can get a copy of your credit report for free and then you can fix any errors.
  • Joint car finance. You can get car finance in joint names in South Africa. This is where two people sign a contract to share responsibilities. If you have bad credit, joint car finance in South Africa can increase your chances of getting car finance.

Joint Car finance in South Africa

Can you get car finance in joint names? Yes. You can get car finance in joint names. However, the process may differ from one lender to the other. It is worth noting that not all lenders accept joint applications. Some even impose restrictions. Therefore, you need to shop around to get a lender that can give you car finance in joint names.

For most lenders, there are no restrictions on who you can joint finance a car with. Therefore, you can joint car finance with your child, spouse, relative, or friend. However, some lenders require that both parties reside in the same place. If one party is unable to make a repayment, the other party is expected to repay the loan in full. It is possible for that party to rake a payment holiday. Missed payments affect both parties’ credit scores.

Bad Credit Car Finance Lenders in South Africa

You can get car finance with bad credit in South Africa from the following lenders.

Vehicle Finance

Vehicle Finance is great car finance for blacklisted South Africa. The lender does not offer their own financing, instead, they get loans from banks. To qualify for car finance, you need to be employed with a regular income. They offer same-day approval for loans of up to R500,000. Repayment term is up to 5 years and interest rates start from 16.95%.

Requirements

  • 3 months’ pay slip
  • ID document
  • Proof of address
  • Valid driver’s license
  • 3 months bank statement
     

Blacklisted Car Finance

Blacklisted Car Finance is an excellent vehicle finance in South Africa for blacklisted. You don’t need a credit history to get a bank loan. If you meet the criteria, you can rent to own a car of your choice. Once the rental period is over, you get to own the car. To qualify for the loan, you need to make a minimum deposit of R15,000 and have a minimum R12,000 gross monthly income.

Requirements

  • South African driver’s license
  • Proof of residence
  • 3 months bank statements
  • Recent pay slip
     

Auto Sizo

Auto Sizo is a lender that can help you get a low Credit score car finance South Africa. You can get car finance if you have a credit score below 500. You can also get rent to buy a car. To qualify for the car finance, you need to be a South Africa resident and be permanently employed.

Requirements

  • Valid driver’s license
  • Proof of address
  • Payslip

After applying for car finance, Auto Sizo will contact you within 24 hours.
 

Earn a Car

Earn a Car is a no credit check car finance South Africa with instant approvals. This means you can use the company for low credit score car finance in South Africa. To get car finance, you need to complete an online application. The lender will then contact you to finalize the agreement. You can then pick up your car within 24 hours. They offer new rent to own vehicles.

Requirements

  • Valid driver’s license
  • Proof of residence
  • Must live in Gauteng or Witbank
  • 3 months bank statements
  • Recent pay slip
  • Be over 35 years
  • Earn at least R3,500 per month
     

No Finance Cars

No Finance Cars is also among the best no credit check car finance South Africa. They offer rent to buy and rent to own car finance. You can contact them if you are having trouble getting a car loan. They do not have hidden cots, no interest rates while you also get free roadside assistance. There are minimum approval criteria and you can upgrade your car every 18 months. You can also terminate the contract at any point.

Requirements

  • Minimum deposit of R12,500
  • Minimum gross salary of R12,000
  • Valid South African driver’s license
     

Money Expert

Money Expert is car finance for bad credit South Africa. They do not offer car finance directly. Instead, they link you up with a lender. They help you buy a new or a pre-owned vehicle. If you have poor credit score or you have been blacklisted, this is a company that can help you apply for the loan. You need to pay a deposit to qualify for car finance.
 

Summary of How to Get Car Finance with Bad Credit in South Africa

If you have bad credit and you are looking for car finance in South Africa, it can be challenging to find one. The above lenders can help you get car finance in South Africa even with bad credit. You can increase your chances of qualifying for car finance by applying for preapproval, comparing different lenders, or joint car finance. Make sure to shop around and compare prices between different lenders before deciding on a particular lender.

Vincent is a writer and researcher with an interest in finance, banking, startups, and remittance. He holds a Bachelors degree in Applied Statistics with computing. He founded Nexin Startups, an online platform offering startup advice to investors and entrepreneurs. Read more about us and our authors.