Car Leasing on a DMP

[Deleted User] · 14 July 2014 at 8:57PM

Hi guys,

I have an old, battered car which is destined for the scrap heap. I've been buying 2nd hand cars like this ever since I started my DMP as I obviously can't afford a new one and getting enough cash together for a half decent 2nd hand car is an exercise in futility.

My question is this:

Can I lease a car whilst on a DMP?

I roughly know what my credit score is at the moment and it's not too bad, but I've obviously got defaults on there.

We need a car and this one isn't going to last.

Has anyone had any experience with this? Can anyone suggest a good vendor?

Thank you very much in advance

Barricade · 14 July 2014 at 9:04PM

Hi There,

As far as I'm aware, your DMP plan is built within what you can afford. Taking on an extra debt (although lease) would probably go against the DMP agreement and therefore not allowed.

There are companies that would entertain it, but the charges and suchlike would only push you further beyond your limits.

[Deleted User] · 14 July 2014 at 9:09PM

Barricade wrote: »

Hi There,

As far as I'm aware, your DMP plan is built within what you can afford. Taking on an extra debt (although lease) would probably go against the DMP agreement and therefore not allowed.

There are companies that would entertain it, but the charges and suchlike would only push you further beyond your limits.

Thanks for the reply.

I see what you're saying but I guess this would have to be built into my budget and a review would need to take place.

I pay quite a hefty monthly sum so surely there must be some leeway?

Barricade · 14 July 2014 at 9:14PM

I guess the first task would be to ask the people you have your DMP with.

Secondly, would be to work out the costs associated with the lease.. payment, insurance, fuel.. etc.

Your DMP is designed to get your debts settled in a reasonable time without breaking the bank. If your circumstances have changed, then I'd presume (I don't know for certain) that the DMP Provider would need to be told, so that they can adjust accordingly.

Lastly.. The defaults on your credit file *could* automatically cause a 'Computer says No' decision when going for a car. Bear that in mind.

feeling-good · 14 July 2014 at 9:17PM

As far as I am aware, taking on further credit in whatever form whilst on a DMP is not allowed.
If your current creditors found out that you have, ( and they will find out), they will cancel your arrangement with them, probably resulting in interest being restored, ccj's etc.
Doubtful your DMP provided would allow it anyway, even if you could get the credit which is doubtful.

[Deleted User] · 14 July 2014 at 9:20PM

Thanks guys.

TBH, I kind of expected that to be the case and was concerned about any repercussions.

I guess we'll all just have to get a skateboard, lol!

Powered_By_Pies · 14 July 2014 at 9:42PM

It might be worth talking to your DMP provider about it, I had a car on finance when I started my DMP and it wasn't included in my list of creditors as the company considers it a 'priority debt', in that if I'd have stopped or reduced payments there was the risk the car finance company could take the car away - that said I started my DMP about 4 months ago and my car finance has just finished, so that might have been a factor on their decision not to include it.

You'll have to update a SOA to include any potential finance repayments and I think there may be a way around the creditors getting shirty - the DMP company may (I stress MAY, it's not set in stone) back your case and make the point to the creditors that a car is needed to continue employment to earn the money that's paying them back, and without that you wouldn't be able to pay them back at all.

It's a long shot though. I honestly don't know if it would work, but there's no harm in at least asking your DMP provider to see what their advice would be.

Puzzcat · 15 July 2014 at 9:54AM

Not sure who your dmp is with but payplan have something set up for finance called red potato, or similar name. Stepchange don't have anything similar but worth a phone call to your dmp company. I assume it is one of the free providers and you are not paying for the service. There is also the possibility of reducing your dmp payments to allow you to save for necessities, of course this could upset your creditors but in an emergency can be done. Give them a ring and discuss your options.

Swami_Trinel · 1 August 2014 at 6:20PM

I got a car through Red Potato six months before my DMP came to an end. The car itself is very good, excellent condition, low mileage and all their cars are less than five years old (mine was three years old when I bought it).
However, as you'd imagine I am paying well over its actual value but at the time I had no choice as I'd lost my right to a company car and needed to get my own.

Now I'm debt free (apart from the car) I'm wondering if it would save me money to get an early settlement figure and getting a loan for that amount and paying that off.

allengirls · 23 October 2014 at 9:07PM

Hi I am going through the process of getting a car through red pot as have a dmp with payplan as this is our only option as my car is on its last legs. I've just sentx the paperwork/I.d. through via email today and should get a decision within 3 days apparently. Do you know how long the process takes from the decision and when I shoukd receive the car?

Thanks x

Sazzie23 · 24 October 2014 at 1:23AM

Hi Hewsy10

Try posting this on DMP support thread as I'm sure someone on there had the same issues. I think it might depend if you 'need' the car for work.

Good luck with it

Car Leasing on a DMP

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