Black box car finance

If you’re worried about your poor credit history, black box car finance could be a good option. You make monthly payments that fit your budget, and you still get to drive the used car you need. We work with lenders who look at more than just your credit score, so you still have a fair chance. It’s a straightforward way to get a car on finance without spending more than you can afford.

What is black box car finance?

Black box car finance, also called Pay As You Go (PAYG) or pay as you drive finance, is a Hire Purchase (HP) agreement. It suits people with bad credit or no credit history who need a way to finance a car.

A black box is fitted in your car after approval. The box reminds you when a payment is due. It flashes or changes colour to alert you. If you miss a payment, the finance company can disable the car until you catch up. This system gives lenders the confidence to approve more applications.

The agreement starts with a deposit, followed by monthly payments. Once you finish the full term and pay the car’s residual value, you become the legal owner. Until then, the lender keeps ownership.

This type of finance is faster and easier to arrange than a standard car loan. It gives you a fair chance to get a car and keep up with payments at the same time.

Can I get a black box car finance deal?

Absolutely! At Carplus, we work with lenders who offer black box car finance to people with low credit or limited credit history. These lenders accept applications others may reject. That’s how we help you find a deal when other brokers can’t.

Our goal is to help you find a finance package that suits your specific needs and budget. With black box car finance, you can pay for your car on a monthly basis, making it easier to manage your finances. We understand that everyone's situation is unique, and that's why we offer a range of car finance options to help you find the best one for you.

We offer PAYG car finance to help you buy the car you want. Many of our lenders use hire purchase car finance, which means you buy the car in monthly instalments and own it once the last payment is made. A black box gives the lender more confidence, which is why they’re more open to offering finance to people with poor credit.

How does black box car finance work?

1. Installation

   Once approved, your lender installs a black box device in your car. This is a small payment box that fits discreetly under the dashboard or in the glove box. It connects to your vehicle’s onboard diagnostics system (EOBD port: European On-Board Diagnostics) and links to your lender through GPRS (General Packet Radio Service – a mobile communication system).

   The boxes don't track your driving. It only monitors whether you’ve made your payments on time.

2. Payment reminders

   Three days before your monthly payment is due, the black box gives you a visible reminder.

   A light on the box switches from green to red and begins flashing. This signals that your payment date is approaching. The reminder is silent and non-intrusive, it's there to help you stay on track.

   If you're worried about forgetting a payment, this feature acts as a built-in nudge to help you budget effectively.

3. Make your payments

   You make your payment through your lender, just like with any standard car finance agreement.

   After payment, you receive a short activation code. You enter this code into the black box using a keypad or mobile device, depending on the system. Once entered, the box resets and the green light returns. You’re good to drive until your next due date.

4. Missed payments

   If your payment is missed, the box may prevent the car from starting.

   This won’t happen suddenly or without warning. The flashing light continues, and you’ll receive reminders directly from your lender. If you fall behind, you still have time to make the payment and enter the activation code.

   However, repeated missed payments may result in temporary disabling of the vehicle. Emergency override options are available if you need to use the car in a genuine emergency (such as medical appointments).

5. End of the agreement

   Once all your monthly payments are complete, the finance agreement ends.

   The black box is removed, and full legal ownership of the car transfers to you. This final step confirms that you’ve met your obligations under the Hire Purchase (HP) agreement and now own the car outright.

Why do lenders use the black box?

The answer is simple - black boxes have been proven to reduce delinquencies by up to 500%. With this system, lenders can have confidence in financing clients who may have previously been considered risky due to bad credit ratings. Boxes allow for adjustable payments tailored to actual driving habits. Car finance with a black box system is good for the customer as well. Paying on time each month helps with rebuilding your credit. The more consistent you are, the more likely you’ll be approved for better deals in the future.

Black box finance with bad credit - improve credit rating today

A black box finance system truly improves your bad credit score. First, with monthly payment reminders, you won't be able to fall behind on payments. Second, by paying your bills on time and covering the same amount each month, you can raise your credit score. It is a win-win situation for both you and the lender. You pay the same amount each month, so it’s easier to plan your budget. This shows lenders that you can manage your money well. It also gives you a better chance of getting better deals in the future.

Black box car finance with no credit check - Carplus will help you

If you’re looking for black box car finance with no credit checks on your credit file, Carplus can help. We use a soft credit check to match you with lenders. This doesn’t affect your credit score or leave a mark on your report.

We understand that everyone deserves a chance to own a car, and our simple process ensures just that. Our black box technology encourages responsible driving, and with no credit check, approval is closer than you thing. We work with UK lenders who offer no credit check car loan to people with low credit or no borrowing record at all. Our process is quick, clear, and tailored to your situation.

Choose Carplus for black box car finance!

As a car loan broker, Carplus has four distinct advantages. With us, you can compare car financing deals and look for the best deals because we are an FCA-authorised credit broker. A quote from Carplus will not impact your credit; you can check your offer for free. We have no-deposit car financing and a soft search option. Finally, you can get a car financing decision within minutes - and confidential

Potential implications of missing a payment

Sometimes you may miss a payment. While it’s important to prioritise these payments, some lenders may offer a grace period that are often up to 30 days. If payments aren’t made within this period, the black box could potentially deactivate your vehicle until the issue is resolved and you’re up to date with your payments. This would only occur when the vehicle is stationary. Failing to keep up with your payments may also results in late charges and potential credit profile impacts.

Caring for Your Mental Health: Addressing Money Worries

We’ve partnered with the UK's leading lenders so we can always do our best to support you. If you’re worried about managing your finances, you’re not alone. Money worries can have an impact on mental health which can lead to anxiety and depression. We’re also here to help. Please do not hesitate to contact us on 020 3835 5453. Below are specialist resources to help with a wide range of issues, as well as help for all kinds of money-related problems.

Citizens Advice - Confidential information and advice about debt and money.