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Low Deposit Required

Affordable Finance Option

Quick Application

Fast & Easy Process

Poor Credit History?

That's Why We Offer Pay As You Drive

WHAT IS PAY AS YOU DRIVE FINANCE?

Pay As You Drive car finance, also known as black box car finance, is primarily designed for people with bad credit that struggle to obtain finance agreements with mainstream lenders using the traditional leasing and car finance products.

When you think of Pay As You Go products, the typical association is with mobile phones before 24 month contracts became standard practice. Pay As You Drive car finance works in a similar way, in that, if you don't make the monthly payment (or top-up the phone's credit), you won't be able to drive the car.

This type of finance is built around a traditional Hire Purchase (HP) agreement. You will need to put an initial deposit down (around 10%) and then make an agreed number of monthly payments.

At Compact Cars, our black box car finance agreements tend to run for 18 months and we're willing to lend you our own money. During the repayment period, the car remains the property of Compact Cars and ownership only transfers to you when all payments have been made.

HOW DOES THE BLACK CAR PAYMENT BOX WORK?

Firstly, the black car payment box is not the same as black box car insurance - it does not monitor driver behaviour and having it installed will not have any impact on the price of your insurance premium.

Once you decide to go ahead with our Pay As You Drive finance option, a qualified technician will fit your black car payment box discreetly under the dashboard or in the glove box.

By connecting to the car's internal computer, it will act as a hi-tech payment reminder and communicate with us using GPRS functionality. The box will flash red three days before your next payment is due, so even if it's due over the weekend, you'll have time to organise the payment being made on time.

Once the payment has cleared, you will receive a code that needs to be keyed into the box. The light will then stop flashing red and go back to green for the rest of the month until the next payment is due.

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WHAT HAPPENS IF I DON'T MAKE A PAYMENT ON TIME?

 If you don't make a payment, you won't receive the activation code to turn the car payment box from flashing red back to green. However, we have a five day grace period after your payment date which allows you to continue using the car while you sort the payment out.

After the grace period is over, if you haven't made the payment, the car will be remotely immobilised using its GPRS and you won't be able to use it until the payment is made.

Your car will never be immobilised while you're driving. The system will wait until the car is placed in neutral with the engine switched off - you will not be able to start the car until the next activation code is entered.

WHAT HAPPENS AT THE END OF THE AGREEMENT?

As with any standard Hire Purchase agreement, once you've made all monthly payments and the option to purchase fee (normally £50) on your Pay As You Drive finance plan, you become the official owner of the car.

The black car payment box is removed by a qualified technician and you only need to pay for the insurance, maintenance (servicing and MOT), road tax and fuel.

WHAT ARE THE BENEFITS OF THE BLACK CAR PAYMENT BOX?

Statistics have shown that the black car payment boxes have reduced car finance payment default rates by up to 500%. As a result, people with poor credit, who may previously have been considered too high-risk, are able to get car finance agreements from providers such as ourselves.

Taking out a Pay As You Drive finance agreement and making payments on time enables customers with bad credit to build up a repayment record that in-turn helps to improve their credit rating. After one black box car finance agreement has been completed, it could open the door to mainstream lenders and finance plans as well as lower finance rates.

If monthly repayments aren't suitable for you, we actively encourage customers to pay smaller weekly amounts that are easy to manage.

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Car Value £1,995 Pay As You Drive Example

  • Deposit - £200
  • Loan - £1,795
  • Term ( Months ) - 18
  • Charges - £543
  • Arrangement Fee ( upfront ) - £0
  • Arrangement Fee ( spread ) - £200
  • Option Fee - £50
  • Total Charges - £793
  • Loan + Total Charge - £2,588
  • Deposit - £200
  • Loan + T.C. + Deposit - £2,788
  • A.P.R. - 61.9%

First Repayment - £141
16 Other Repayments - £141
Final Repayment - £191

Car Value £2,995 Pay As You Drive Example

  • Deposit - £300
  • Loan - £2,695
  • Term ( Months ) - 18
  • Charges - £813
  • Arrangement Fee ( upfront ) - £0
  • Arrangement Fee ( spread ) - £200
  • Option Fee - £50
  • Total Charges - £1,063
  • Loan + Total Charge - £3,758 Deposit - £300
  • Loan + T.C. + Deposit - £4,058
  • A.P.R. - 54.9%

First Repayment - £206
16 Other Repayments - £206
Final Repayment - £256

Car Value £3,995 Pay As You Drive Example

  • Deposit - £400
  • Loan - £3,595
  • Term ( Months ) - 18
  • Charges - £1,083
  • Arrangement Fee ( upfront ) - £0
  • Arrangement Fee ( spread ) - £200
  • Option Fee - £50
  • Total Charges - £1,333
  • Loan + Total Charge - £4,928
  • Deposit - £400
  • Loan + T.C. + Deposit - £5,328
  • A.P.R. - 51.5%

First Repayment - £271
16 Other Repayments - £271
Final Repayment - £321