Auto Dealerships that Finance Bad Credit

July 28, 2022

Are you looking for car finance with bad credit? Arranging vehicle finance is way more difficult if you have a history of bad credit. Loan providers will likely view you as a high-risk client and this can prompt them to either not approve your loan application or offer you a loan with high interest rates. Lenders are more likely to approve people with good credit scores because they are viewed as a safe bet for making repayments on time.

It’s still possible to get a loan or another type of vehicle finance with poor credit and you can come across auto dealerships that finance loans for people with a bad credit score.

How to buy a car with bad credit?

Improve your credit score

First off, you should definitely check your credit to see where you stand and look into if it’s possible for you to improve your credit in any way.  This can help you qualify for a loan. To do this, you’ll need a copy of your credit report so that you can see exactly what is contributing to your bad credit score. You should do this before even stepping into a car dealer so that you know exactly where you stand credit-wise.

Your credit score is typically comprised of your credit history, credit utilisation amount, and other factors such as the length of your credit history, new credit, and credit mix.

You can bring your credit up by:

  • Disputing any errors on your credit report. There’s always a possibility of there being errors in your report. If that is the case, inform the credit bureau to dispute the errors and conduct a debt review as well.
  • Paying your bills on time. Paying off any outstanding debt can go a long way towards improving your credit score since a lot of it depends on making payments on time.
  • Lowering your credit utilisation amount. This basically refers to the amount of available credit that you have. You can improve this by paying off your credit or by asking for a higher credit limit.
  • Avoiding additional bad credit. Keeping your credit up paying your debt promptly is a good way to help improve your future credit score and creditworthiness.

Calculate your budget

Secondly, you’ll also need to look into how much you can afford to spend on a vehicle. Have a look at your monthly expenses and how much you have left over to spend on car-related expenses. Keep in mind that you’ll also need to pay for running costs like fuel, insurance, and maintenance costs, although insurance fees may be included in the loan or rent-to-own agreement.

Calculating how much cash you have available each month will help you determine how much you can afford to spend on a car loan and upfront payments such as the down payment. In addition, you might consider how much you are comfortable spending on car-related expenses each month.

Use an online loan calculator

You can check out loan calculators online on the websites of banks or other lenders. This can help you determine what types of loans you would qualify for and what the terms of those loans would be.

Pay in cash or make a large downpayment

You can also choose to pay for a car in cash or to put down a large down payment. The larger the down payment, the less you’ll spend on monthly loan repayments. This will also make lenders more likely to offer you better loan terms since they will see you as less of a risky client.

Look for alternative vehicle finance options

Another option for people with bad credit is opting for alternative financing options such as in-house financing or rent-to-own. Some car dealerships offer in-house vehicle finance directly to clients without going through a third party like a bank.  These dealers can often be more flexible than traditional lenders like banks when it comes to offering vehicle finance to clients with bad credit.

Get a Rent-to-own car

If you’re unable to get a traditional loan due to poor credit, then you might look into alternative financing solutions like rent-to-own cars. Rent-to-own vehicles are purchased directly through the dealership and you make monthly payments for a fixed period of time, usually 24-60 months after which the vehicle becomes yours. You can also choose to buy out the car at any time during your contract for a certain price.

What makes rent-to-own a viable option for clients with bad credit is that rent-to-own dealers don’t require you to show your credit score. All you need is proof of income, proof of residence, and a valid driver’s license. If you have that, then you could drive away in your new car today!

Read on to learn more about car dealerships that finance bad credit in South Africa. All of these dealers sell affordable used cars and they also are partners of Planet42 for rent-to-own contracts.

At Planet42, we are passionate about helping people, who are unfairly ignored by banks and other traditional lenders, have access to vehicle financing opportunities. Having your own vehicle is crucial for moving around quickly, easily, and safely. Unfortunately, many South Africans aren’t granted vehicle financing due to bad credit or other issues and are forced to use the public transit system instead, which can be inefficient and dangerous.

Below you’ll find a list of auto dealerships in various provinces across the country that sell rent-to-own cars and that offer car finance.

Auto Dealerships in South Africa that Offer Rent-to-Own Cars and Finance Bad Credit


There are numerous car dealers in Gauteng province who provide rent-to-own cars to clients with bad credit. These dealers are located in various cities from Boksburg to Springs to Pretoria. Each dealer offers a variety of cars for different price ranges and needs. Some examples include Optimal Auto in Boksburg, Gig Motors in Springs, and Car Shop in Pretoria.

North West

Jansev Motors, Tooter Investments and Wes Auto all located in Rustenburg are good options for clients looking to buy a car in the area.


Some car dealers to look into for people living in the province include CMH Nissan in Durban and All Cars in Pinetown. There are also several others which you can find here.

Western Cape

If you’re looking for a car in Western Cape, then you’ll have many dealers to choose from in cities like Brackenfell, Diep Rivier, Goodwood, Maitland, Parow, and Wetton. Some options include BNA Motors in Goodwood and Auto One in Parow.

Eastern Cape

This province has car dealerships that finance bad credit in Fairview, Newton Park, and North End. Have a look at The Car Guys in Fairview, Outeniqua Motors in Newton Park, and Concept Auto Sales in North End.

Free State

Auto Wheels in Bloemfontein offers a variety of used cars for every need. These cars can also be leased on a rent-to-own basis through Planet42.


You’ll find the Puma Auto Trader in Witbank offering a variety of pre-owned cars that you can either buy or lease on a rent-to-own basis.

The dealerships mentioned above are just a few out of many dealerships. Planet42 has partnered with over 500 dealerships across South Africa. You can find the complete list of dealers here.

If you still can’t find a dealership near you, don’t hesitate to get in contact with us and we can help you find a dealer in your area.

If you’re interested in a specific car or two at one of the dealers, you can fill in your application here and we’ll get back to you within a minute with your application approval. We will then buy out the car from the dealer and rent it directly to you. All you need to apply for a rent-to-own car is your name and contact details, monthly income, and ID number.

How to find the perfect car for you?

In order to find your perfect car think about:

  • your budget
  • what you will be using your vehicle for
  • how often you’ll drive it
  • where you’ll drive it
  • how much space you’ll need
  • if there are any special features that you’d like to have or that you need.

This will help determine what types of cars you can consider and how much you’ll likely need to pay for a loan.

Which questions should you ask your car dealer?

Asking the right questions can help you get a better deal and to know exactly what you’re getting yourself into. This is crucial since you won’t want any surprises popping up further down the line. Here are some questions that might help you determine the best vehicle, car finance options, and the best dealer for you:

  • What types of cars do I qualify for?
  • How high will the interest rate be?
  • What is the total amount being financed?
  • What is the length of the loan or the rent-to-own agreement?
  • Are there any penalties for ending the loan or the rent-to-own agreement earlier?
  • Is there credit insurance, should I get it, and do you offer it?
  • How many payments will I need to make and what is the exact amount of each payment?

You can even write down the dealer’s answers to each of the questions so that you don’t forget anything later on when it comes time to make your purchase decision.

What will the dealer typically look at when assessing whether to offer car finance?

A car dealership will typically conduct a credit check, see how long the prospective buyer has been employed and how long they have lived at their current address. Based on this information the dealer will decide whether to offer a loan as is, offer a loan at a higher interest rate, ask for a higher down payment or ask for a cosigner such as a spouse or a parent to sign with the client.

Buying a car with bad credit can be a challenge, however, you can find dealerships across South Africa that help clients with bad credit buy a car and that offer vehicle finance to those in need.