Can't get vehicle financing? You can rent to buy a used car

A lot of South Africans struggle to get vehicle finance approval from major banks and some can only buy cars with cash due to being blacklisted or simply not earning enough to qualify for a car loan.

Planet42 offers a solution for people who are not able to get vehicle loans from banks. The fintech company rents out used cars that it buys from dealerships across the country. Clients can visit the site and make their applications. Once approved, clients make monthly payments and have the option to buy the vehicle for the buy-out price. 

SEE: Can you really buy a car for just R150 per month in SA?

Planet42 launched in 2017 and was formally known as CarGet to respond to the gap left by banks to provide financing for millions of South Africans who struggle to get finance. According to the site, the business has bought more than 2,000 cars for people who would otherwise not have access to a personal vehicle.

READ: Can the Bajaj Qute be classified as a car?

All you need to do to qualify is:

• Select a pre-owned car and fill in an application at any dealer that has partnered with Planet42. Their automated scoring algorithm will approve the application within one minute.
• They buy the car from the dealer and rent it to you. You drive the car and make monthly payments to Planet42.
• You have the option to become the owner of the car at any time. You can also purchase the vehicle after 60 months of renting for R5,000.  

All of their rental rates include third party insurance and a tracker device.

Image Credit: iStock