There is a reason they call it blacklisted! When you have a judgement or default listed against your name, you can’t get finance from a bank due to your risk of credit default. If you do get finance, the rate is usually very high and has lots of extra fees linked to it.
This means you need to find alternative ways of getting the things you need in life. Rent to own is generally accepted as a non-finance method of getting what you want, and continuing with your life. The term “finance for blacklisted” or “car finance for people under debt review” is a myth when it comes to financing a car.
The benefits of using a rent to own company is that usually they don’t do a credit check (they may even advertise ‘car finance no credit check’), and they will let you have the car you want so long as you have the first month’s payment and the deposit. This is a mistake, you should always make sure that you decide what you can, and can’t afford.
The problem with using a rent to own company is that sometimes you are too excited to have just been “approved”, so you don’t read the small print and you end up in a worse situation than where you started. Typically a rent to own company will make you sign a long term contract (with exit penalties), so you have to rent the car for 48 or even 54 months to be able to get the car. If you cancel early you lose all your benefits. They will also tie you in with limited mileage deals, so you end up paying more than what you expected. The other major issue is that you could end up with a fly by night company who disappear, and the next thing the bank come knocking on your door to collect the car. Unfortunately rent to own is not easy sailing, but below are some tips to help.
A simple check list when you are doing a rent to own would be as follows:
- Enquire about the early termination rules, are there any penalties? This is the most important aspect.
- Enquire about the reputation of the company you are dealing with, you need to be sure that they will be around when the time comes to get your car
- A quick search on hellopeter.com will tell you whether company you are dealing with is reputable.
- Ask for the service history and the accident history of the vehicle, check that the vehicle has been professionally repaired.
- Check the rules on how mileage gets billed
- Ask if the vehicle comes with insurance and check that 3rd party is included and check what is excluded
- Compare prices and quality of vehicles, if one rent to own company approves you, most will.
Pace Car Rental have partnered with SA Motor Lease to lease our old rental cars to the public on rent to own. We ensure that they hold themselves to the highest standards, and do not prey on people in a vulnerable situation. A car in South Africa is an essential piece of equipment if you want to have a decent job and have your kids at the best schools. Without it, life is hard. If you are under debt review, you have two options, rent at high prices and never get any other benefits, or rent to own and lower your cost. SA Motor Lease operates in Johannesburg, Cape Town and Port Elizabeth, so you are always near a branch.
SA Motor Lease have adapted their contracts from internationally accepted good practice so that you are always in a better situation when you decide to rent to own a vehicle with SA Motor Lease. They have easy exit terms and conditions so that you don’t pay after you return the vehicle, and even the deposit is refundable. You can still get the benefits if you wish to upgrade or downgrade early. You can get a cash rebate if you have looked after your car well, and its worth more than the predicted value. SA Motor Lease have ethical staff who are empowered to do the right thing, so you always get fair treatment, and you know your investment is safe. While there are other rent to own companies out there who are ethical and have integrity, it’s a good idea to get a few quotes and ask the questions we have posed above as a way of ensuring you go with the best rent to own car and best rent to buy company.