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Low Deposit Required

As little as £200

Black Box Payment Reminder

Monthly prompt to keep on top of payments

Bad Credit?

Finance a car even if you have a poor credit history

HOW DOES PAY AS YOU DRIVE FINANCE WORK?

Designed to help customers with bad credit, Compact Car's Pay As You Drive finance is an alternative form of car finance also known as pay as you go car finance or black box car finance.

Pay As You Drive finance is modelled on a traditional Hire Purchase (HP) agreement. It requires an initial deposit (around 10% of the value of the car) followed by an agreed number of monthly payments. What's different about a pay as you go finance agreement is that the finance lender will install a black box in the car.

The black box isn't capable of moniting driver behaviour; it only acts as a payment reminder. Three days before payment is due it'll flash red. Once you've arranged payment and it's cleared, you'll receive a code to enter into the box which will return the light to green for the rest of the month.

For more information, you can read our in-depth Pay As You Drive finance guide.

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

PAY AS YOU DRIVE FINANCE AT COMPACT CARS

We're authorised and regulated by the FCA so you can trust us to set up your pay as you go finance agreement. We've built up excellent relationships with a range of specialist finance companies so we can offer black box car finance to those who may have been refused finance elsewhere or have poor credit.

To help you finance a car responsibly, we're even willing to lend you our own money. Our Pay As You Drive finance agreements tend to run for 18 months. During this period, the car remains the property of your chosen finance company and ownership only transfers to you when all payments have been made.

 

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

The black box payment reminder also acts as an immobiliser. If you don't make a payment, you won't receive the activation code. Most of our lenders offer a 30 day grace period where you're still allowed to drive the car while you arrange payment.

If, after the grace period has ended, you still haven't made a successful payment, the car will be safely immobilised while idle. The engine will not start again until the next payment is made - hence the title, Pay As You Drive.

 

WHAT HAPPENS AT THE END OF A PAY AS YOU DRIVE FINANCE AGREEMENT?

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

The finance company will arrange for the black box to be removed by a qualified technician and you will no longer need to pay a monthly fee or enter an activation code to drive the car.

 

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