To buy a vehicle in South Africa with a bad credit record to your name can seem like a long, tedious and hopeless task because of all the negative response given to applicants, especially from ABSA, FNB, Standard Bank and Nedbank. This is because these banks have to adhere to strict rules laid out by the National Credit Act and will not lend money to any motor owner who is considered a bad risk because of his or her financial history. If you need to buy yourself a new car for whatever reason but know you have been black listed by a previous credit provider then you are going to have to dig a little deeper to find the loan companies that are willing to help members of the general public with a poor credit record to their name.
South Africa is not the only country to have suffered financially in recent times and the amount of people who need blacklisted finance to purchase a car has grown in leaps and bounds. Many people find themselves with a bad credit record because of no fault of their own but perhaps a misunderstanding or even a spouse that has put them in a difficult position financially. If you are someone that finds themselves on a black list and not sure how to clear your name then the first thing to do is to contact the company or organisation that has you black marked. Try and pay back the money that you owe them and get your name cleared from the ITC so that you can apply for loans with any credit provider in SA. If you know of a financial lawyer that can help in some way, that will certainly be a bonus.
Alternatively, bank auctions selling repossessed cars are being held regularly in Cape Town, Johannesburg, Pretoria and Durban as well as other regions of the country and are selling thousands of vehicles at affordable prices. This means that the amount of money you need to borrow to buy a decent vehicle may not be as much if you are keen on purchasing a repossession at one of these auctions. Many of the automobiles for sale at bank repo events are almost new makes and models for close to wholesale prices. There are credit providers willing to lend cash to people other than the banks, especially if you own a home or something of great value that you can secure against borrowed money.
Be careful of secured finance though as this gives the lender every right to take your house or property in the event that you may be unable to pay back the cash that you have borrowed from a creditor. Avoid loan sharks in South Africa and any micro lenders that charge ridiculously high interest rates and look for registered finance providers that help people who are blacklisted to buy cars for transport to work and back or for whatever other reasons a person may need a vehicle.