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DMP car advice please?!

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Mandoo_2
Mandoo_2 Posts: 76 Forumite
in Debt-free wannabe
Hello,
Any advice welcome please. I will try to keep this brief!

I currently have a DMP in place with CCCS which is all going well. I also have a car on finance with Black Horse which I have just under 2 1/2 years left on a 5 year agreement. This is a personal loan type agreement. I live in the country and am not served by public transport so the car is essential.

The trouble I now have is that the car needs a few hundred quids worth spent on it to get it through MOT soon, as 2 tyres and exhaust need sorting. Quite expensive on a Ford Focus and I have no way of getting the cash together in time.

Black Horse have said I can return the car to them and knock a large chunk off the agreement, then they will except reduced payments of about £20 a month for the time being.

I would like to know if it is acceptable to get a much cheaper car on finance whilst on a DMP. I need the car urgently or I will loose my job. I obviously don't want more debt but I need a reliable vehicle and as my car was £7k when I got it my payments are £160 a month. I've been looking at the sub £2k cars and payments will be under £100 a month giving me £40 more to put into my DMP.

Sorry for the long winded post, but I really value peoples opinions on this site especially if you have been in a similar situation yourself. I am stuck on what to do.

Thanks in advance,

Mandoo.
Lightbulb moment: August 2007. Debts totalling £15,634.
Debt as of 19th July 2012 - £6,426.
Estimated Debtfree Date: December 2017, but aiming for a lot sooner!
Official DFW Nerd club member #798. Long Haul Supporter #98.
Proud to be Dealing with my Debts.

Comments

  • Donedoingdebt
    Donedoingdebt Posts: 1,196 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    Personally, if it's at all feasible, I'd keep the Focus that you have now.
    You may find that the selling or trade in price for your car might not match up to your expectations.
    No car is cheap to run these days & paying for tyres & exhaust for MOT is nothing out of the ordinary.
    Ford servicing & spares prices usually compare quite favourably with other makes, especially Japanese cars.
    If you're looking at sub 2k cars, you may be lucky, but you may also be buying a heap of expensive trouble.
    As for further finance on a DMP, you should speak to CCCS first as I've read on this site that they've cancelled DMPs due to further finance being taken out.
    Donedoingdebt Lightbulb moment January 2000. Debt at highest approx £102,000. Debt now (October 2009 - absolutely fork all!!!):beer:
    CSA case closed on 02/09/10 :beer::beer:
  • rayday2
    rayday2 Posts: 3,960 Forumite
    Mandoo - years ago we handed a car back and we were totally fleeced. They took the car and we ended up with £4k or more still left to pay. I would seriously look into funding the car repairs in the long run it would be cheaper.

    Otherwise you will be funding two cars and only got the one, and what happens when the next car costs too much to run? I know I sound boring and sensible, but you usually find that after cars have cost you a bit they go through a quiet period where they don't cost you too much and you can save again for new repairs.

    Also if you are with CCCS you would have signed to say you will not take anymore credit on so all ways its not the best thing to do.

    I can't believe a focus is the most expensive car to repair, could you speak with the garage and ask if there is a cheaper way of doing it.

    Very sorry for sounding square!
  • Mandoo_2
    Mandoo_2 Posts: 76 Forumite
    Thanks for the replies.

    I understand what you are saying, but I am looking at about £50 each for 3 new tyres and about £200 ish for the exhaust system. I have not taken the car to a garage yet. These prices are just estimates based on my brother-in-law doing the work on the exhaust for me at his garage. The tyres have to be done elsewhere as he can't do them.
    I would like to keep the focus but it is not road legal at the moment. I am borrowing my Dads car while he is off sick, but he goes back to work in 2 weeks. I have to get a car sorted as I have no other way of getting to and from work.

    Mandoo.
    Lightbulb moment: August 2007. Debts totalling £15,634.
    Debt as of 19th July 2012 - £6,426.
    Estimated Debtfree Date: December 2017, but aiming for a lot sooner!
    Official DFW Nerd club member #798. Long Haul Supporter #98.
    Proud to be Dealing with my Debts.
  • HHH_2
    HHH_2 Posts: 442 Forumite
    I would talk to CCCS I had a situation with LLoyds where I had to agree to a different loan before they would pay back my missold PPI. intially CCCS said it was taking out more credit and so wouldnt let me do it on my DMP but when I explained it would actually save money they agreed and everything has been running very smoothly since.
  • mummytofour
    mummytofour Posts: 2,636 Forumite
    Getting more finance is not an option, (I hate car finance unless if for a brand new car). Is the car in on a personal loan not using the car as security, is that right?
    Debt free and plan on staying that way!!!!
  • newlywed
    newlywed Posts: 8,255 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    rayday2 wrote: »
    Mandoo - years ago we handed a car back and we were totally fleeced. They took the car and we ended up with £4k or more still left to pay. I would seriously look into funding the car repairs in the long run it would be cheaper.

    I agree. Be careful. OH had a Mondeo with Black Horse loan (like yours). When his wife went off with someone else, he gave work to look after the kids and couldn't afford the car payments. They took the car back and 3 years on he is only just about to pay it off!! So 3 years of paying for a car he hasn't even had use of!

    Find out exactly how much you would owe and have to pay each month before you do anything else. Black Horse also said they would accept reduced payments for a time (after they had the car back), but didn't actually inform him they were making a charge of about £40 a month for the privilege!! :mad:

    Ask for everything in writing. ;)
    working on clearing the clutterDo I want the stuff or the space?
  • geoffmr1
    geoffmr1 Posts: 229 Forumite
    Part of the Furniture Combo Breaker
    Is there any chance you could lease a car??

    You could lease a brand new car like a Kia Picanto for around £100+ a month (not the greatest or most stylish car but its cheap to run). I understand that effectively it's dead money as you won't own the car but it will save you money monthly on the current £160 & your not really asking for credit as they would just take the car back if you fail to pay the monthly lease agreement.

    Obviously this is just a suggestion to give you another idea to look at!!
    :j DMP mutual support thread member - 135:j
    http://www.equitiadebt.com/
  • newlywed
    newlywed Posts: 8,255 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Can you ring CCCS and explain you need to make urgent repairs on your car and can you reduce/cancel your DMP payment for just one month, otherwise you can't work?? Would that cover the repairs?
    working on clearing the clutterDo I want the stuff or the space?
  • CCCS_Alan
    CCCS_Alan Posts: 282 Organisation Representative
    Hi Mandoo

    If you are needing to make expensive essential car repairs and make lower payments for your DMP for a month you do need to contact us regard this as soon as possible. Our budgets can only really accommodate MOT and light repair costs normally.

    Is the vehicle definitely on HP/conditional sale agreement as if it’s just a personal loan agreement the vehicle would be yours, and the loan should have been added onto your list of non secured creditors allowing more surplus to spread over all of your creditors.

    Sometimes clients come to us with very high HP/conditional sale costs and if a car is essential, advise them to seek a lower agreement which sometimes increases the length of payments but lowers the overall costs allowing more to be given to the other non secured creditors.

    Realistically you need to drop us a line to discuss what the best option is for you at the moment.

    Regards

    CCCS_Alan
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
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