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Pay AS You Drive Finance

Compact Car's Pay-As-You-Drive finance is designed for customers who struggle to obtain finance with mainstream lenders. This innovative option is also known as black box car finance.

This type of finance is built around a traditional Hire-Purchase agreement, requiring an initial deposit plus a schedule of monthly repayments. The car remains the property of Compact Cars and ownership only transfers when all payments have been made.

What makes this option unique is the inclusion of a small black box within the car. This is similar to the kind of box fitted by insurance companies. However, rather than monitoring driver behaviour, it acts as a hi-tech payment reminder.

How Does The Black Box Work?

The black box is fitted by us and discreetly located under the dashboard or in the glove box. Once installed, this box connects into your car's internal computer via the EOBD port and communicates with us using GPRS functionality.

The only time you’ll ever notice this remote communication is on the last day your monthly payment is due, when the box’s green light turns red and flashes. 

Once your payment has been made, you’ll receive an activation code. Key this into the box and the light will stop flashing and turn green for the rest of the month.

Come the end of your Pay-As-You-Drive finance agreement, the black box is removed and the ownership of the car transferred to you, provided all payments have been made.

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What Happens If I Don’t Make A Payment On Time?

Should you miss a payment, the activation code won't be issued and you’ll be unable to drive the car. However, we allow a 5 day grace period which lets you keep using the car while you sort the payment out.

If your payment still hasn’t been made after this period, the GPRS unit will remotely deactivate the car. Essentially, if you don't pay you can't drive. This is why this option is known as Pay-As-You-Drive car finance.

What Are The Benefits Of The Black Box?

Black boxes have been shown to reduce car finance payment default rates by up to 500 per cent. This gives us the confidence to provide car finance for customers who may have previously been considered too high-risk.

Using Pay-As-You-Drive car finance and paying on time also helps customers build up a repayment record that contributes to an improved credit rating. Eventually, this could open the door to mainstream lenders and lower finance rates.

Can You Pay Weekly?

Yes, we encourage customers to pay small weekly amounts that are easy to manage, although we do accept monthly payments too.

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