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.

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Must be between £3,000 to £50,000
Must be between £100 to £10,000 and difference between borrow and deposit must be £5,000
24month
36month
48month
60month
We are a credit broker not a lender

These estimates are subject to credit checks and may change when you apply for finance. this is for example purposes only

Hire Purchase (HP)
APR 11.9%

60 monthly payments of

£0


Interest rate
11.9% APR
Amount of interest
£0
Total payment
£0
Personal Contract Purchase (PCP)
APR 11.9%

60 monthly payments of

£0


Optional final payment
£0
Interest rate
11.9% APR
Amount of interest
£0
Total payment
£0

Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0, the amount payable would be £185.33 per month, with a total cost of credit of£4,119.81 and a total amount payable of £11,119.81. We look to find the best rate from our panel of lenders and will offer you the best deal that you're eligible for. We receive a fixed fee commission per finance agreement, or we receive a commission based on a percentage of the total amount of finance taken. This will not affect the interest rate offered or the total amount repayable. Our service is free.

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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.

Our customers who have already got car finance!

  • High Acceptance Rate
  • Representative APR 21.9%
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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.

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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.

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FAQ

Let us answer the most common questions about pay as you go finance.

Is pay as you go car finance and black box car finance the same thing?

Yes, pay as you go car finance deal and black box finance refer to the same type of car financing agreement.

The terms "pay as you go" and "black box" are used interchangeably by lenders and brokers when referring to this type of car finance that bases payments on actual vehicle usage. While the names differ slightly, they ultimately describe the same flexible car financing agreement tied to a monitored black box.

Is it worth getting a black box?

Suppose you want to improve your bad credit rating or don't have the full amount right now to buy a car in a single payment: yes. The black box system will help you own car and raise your credit bad credit score simultaneously in just a few months.

Can you remove your black box?

The lending company can only remove the black box after the full value of the car has been paid. You cannot remove the black box yourself.

How long does a black box stay in your car?

The black box is in the car the whole time you pay for the vehicle. As soon as the full amount is paid and the contractual obligations are fulfilled, the black box is removed, and you completely take over the car.

What happens if I don’t make a car finance payment on time?

If you are unable to make a payment for some reason, or if you are in arrears, the black box will not allow you to start your car. If you have difficulty making a payment, always keep the company informed, so they can set up a suitable payment plan if necessary.

Does a black box in your car guarantee car finance?

The black box itself does not guarantee anything. If you make your monthly payments on time, there is no threat to the car's financing. But if you miscalculate the payments, the financing may run out.

How are black boxes fitted in a car?

The professional installation of a black box can be done with the help of a specialist and is completely free of charge. They ensure your system is working well and are fully trained to make sure everything is running smoothly. Once you’ve paid off your finance agreement, they’ll remove the black box from your car.

Where does the black box go in a car?

The black box is typically fitted in the dashboard or glove box of a vehicle. Ensuring your full payment is made on time each month means the device will work continuously and you will not even notice it is there. If you don't pay your fine, we will contact you before immobilising your vehicle.

What happens if I fail to make a car finance payments on time?

If you don't pay your GPRS bill after the grace period, your vehicle will be deactivated. If this happens, you may also have trouble using your vehicle. If we still haven't spoken with you after our final reminder, we won't issue an activation code until we hear back from you.