Can you get a car under debt review?
While under debt review you can’t take on new credit, so vehicle finance is out. Rent-to-own is a rental, not credit, so it is one of the few ways to get a car. Tell your debt counsellor, and make sure the weekly amount fits after your debt-review instalment.
Why the bank says no
Under the National Credit Act, consumers under debt review should not take on new credit until they have their clearance certificate. Banks will decline vehicle finance.
Why rent-to-own can work
A rent-to-own agreement is a rental: the provider keeps ownership until the last payment. It isn’t new debt, and approval is based on what you can afford now.
Make sure it’s affordable
- Add the weekly amount × 4.33 to your monthly budget, after your debt-review instalment
- Choose a deal with insurance, tracker and service included, so there are no surprise bills
- Avoid balloon payments
See rent to own cars under debt review or check what you qualify for in 60 seconds.
Questions drivers ask
Will rent-to-own affect my debt review?
It is not new credit, but it is a fixed monthly cost. Include it in your budget with your debt counsellor.
What happens when my debt review ends?
Nothing changes on the rent-to-own agreement. Once you have a clearance certificate you may also qualify for normal finance.