Buying a desirable car often leads the buyer to the question - what is the most profitable way to do it? A person does not always have the money to buy a new car. Applying to financial institutions for a loan can be problematic, as banks often have very strict requirements for customers. We've got the perfect solution for you: pay as you go car finance, also known as black box car finance.

With pay as you go car finance, you have the flexibility to make affordable payments while enjoying the perks of driving your desired car. No need to worry about your credit rating either – we've got options available even if it's not perfect. It's the ideal way to get behind the wheel without breaking the bank. Say goodbye to financial stress and hello to your dream car with our user-friendly and accessible PAYG car finance.

Car finance calculator

Must be between £3,000 to £50,000
Your monthly payment
Total charge of credit£0
Total amount payable£0
Apply now for your personalised, no-obligation quote

Rates from 9.9%: the exact rate you will be offered will be based on your circumstances, subject to status. Representative example: borrowing £10,000 over 60 months, £1,000 deposit, on HP, and a representative APR of 19.9%, the amount payable would be £229.95 per month, with a total cost of credit of £3,796.82 and a total amount payable of £13,796.82.

We look to find the best product from our panel of lenders and will offer you the best deal that you’re eligible for. We earn a commission for providing our services, but this does not influence the interest rate you’re offered.

What is pay as you go car finance?

Pay As You Go car finance (or black box car finance) system implies a long-term lease based on a Hire Purchase (HP) agreement. It requires an initial payment plus scheduled monthly payments. Applications for PAYG car finance are usually much easier and faster to process than loan applications.

The user who bought the vehicle will be the owner in payment of the vehicle's residual value only after the expiry of the contract. Until then, the lessor will be considered the owner.

Our customers who have already got car finance!

  • High Acceptance Rate
  • Rated excellent on Trustpilot
  • Rates From 19.9%

How does pay as you go car finance work?

The scheme of black box car financing works like this. Every car bought via PAYG in the UK is equipped with a black box. This box is a special device that helps keep track of your monthly payments and your car company. The device is installed under the dashboard or in the glove compartment. Once installed, the box connects to the car's internal computer via the EOBD port and communicates with the lending company through GPRS.

Three days before your monthly payment, the green light on the box will turn red and flash to remind you. After you make the payment, you will receive an activation code. You need to enter it in the black box, and for another month, you can forget about the device.

At the end of the financial agreement, the black box is removed, and ownership of the car passes to you, provided all payments have been made.

Can I get pay as you go car finance?

Absolutely! Carplus offers flexible car finance options, including pay as you go car finance. 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 vehicle 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.

If you're interested in learning more about our pay as you go car finance option, go and get a quote! Our team of finance experts will be happy to assist you and answer any questions you may have. Thank you for considering Carplus as your car finance provider.

Get my quote ➜

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 providing financing to clients who may have previously been considered risky due to poor ratings. A black box car finance system is good for the customer as well - it improves credit rating because they are paying bills on time each month.

PAYG car finance helps improve your credit rating

A pay as you go car finance system truly improves your 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 because it improves your chances of getting better deals in the future, and it ensures that the lender gets regular payments on time.

Choose Carplus for black box car finance!

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 have no impact on your credit; plus, 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.

Why our customers rate us 5 stars

Compare deals

Compare and find the best car finance deals - quick and easy.

No impact to your credit

Getting a finance quote with Carplus will not affect your credit rating and you can do it for free

No deposit deals

No deposit options are available on all deals. Check if you are eligible today and get approved risk-free with soft search.

Instant quote decision

Get your UK car finance decision in minutes. Check your eligibility first. Apply in confidence with Carplus

Find your perfect car finance deal

Search now ➜

Black box car finance FAQ

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

Is it worth getting a black box?

Suppose you want to improve your 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 auto and raise your 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 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 repayment 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.