Pay As You Go Car Finance: The Complete Guide | Autozone UK

How Pay As You Go Car Finance Works

Pay as you go car finance is a type of car finance agreement where you make smaller, more frequent payments. Rather than paying a lump sum every month, you pay a smaller amount weekly or bi-weekly. This can be beneficial if you're struggling to make larger payments or if you're on a tight budget.  A small device is fitted to your car which flashes to remind you when a payment is due.

Pay as you go car finance agreements typically involve a hire purchase agreement, which means you don't own the car until you've made all of your payments. However, once you've made all of your payments, the car is yours to keep. 

This can be a good option if you're looking to build up your credit score, as making regular payments can show lenders that you're able to handle your finances responsibly.

Is it The Same as Black Box Car Finance?

Yes, PAYG car finance is another name for black box car finance.  A small device is fitted into your vehicle to better track your monthly repayments. 

If you happen to fall behind on a payment, you vehicle will only be disabled once the engine is switched off and you’ll be notified by a warning signal.

Benefits of Pay As You Go Car Finance

One of the main benefits of pay as you go car finance is that it can make car ownership more affordable. With smaller, more frequent payments, you can spread out the cost of your car over a longer period of time, making it easier to manage your finances. This can be especially helpful if you're on a tight budget or if you have other financial obligations that make it difficult to make larger payments.

Pay as you go car finance can also be a good option if you're trying to improve your credit score. Making regular payments on time can help to build up your credit score, making it easier for you to get approved for other types of credit in the future.