Car loan needed after Motability car taken off me

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sherri71
sherri71 Posts: 4 Newbie
in Loans
My Motability car was taken off me last year after my DLA was changed to PIP. I appealed but was still only awarded the lower rate. I have no independence now and hardly leave my house as I can't use public transport or taxis (I won't go into details why). I have bad credit as well. I've looked at car finance companies who have approved me for credit but charge an extortionate amount of interest and also credit unions, but they want you to have saved with them before approving a loan. Benefits are my only income. Any advice? TIA
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  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Difficult to get a loan on benefits (but no always the case), if you have lost your mobility payment then your benefit income has been substantially reduced. Whatever you do don't accept a loan at very high interest rates, your best bet will be a credit union but they do expect you to save with them for a few months.
  • Nebulous2
    Nebulous2 Posts: 5,116 Forumite
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    Op I'm sorry to hear this. It is happening to a lot of people.

    Can you afford to buy a cheap car outright?

    I thought motability were giving people a grant to help when Motability cars had to go back. High priced loans are unlikely to be the answer.
  • letthemeatcake
    letthemeatcake Posts: 249 Forumite
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    They are giving out transitional support packages but it depends on when you first qualified for higher rate DLA. If you were a member before 31st December 2012 (or rejoined the scheme during this time after at least a one year break and return the car in good condition within 8 weeks of losing an award) you qualify for a one off £2000 payment.
    If you first became a member from 1st January 2013 until 31st December 2013 you are eligible for £1000. You will not receive any payment if you joined 2014.

    I'm sure the OP would have been notified by motability of the above when she returned the car.
  • poppy12345
    poppy12345 Posts: 17,954 Forumite
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    letthemeatcake wrote: »
    They are giving out transitional support packages but it depends on when you first qualified for higher rate DLA. If you were a member before 31st December 2012 (or rejoined the scheme during this time after at least a one year break and return the car in good condition within 8 weeks of losing an award) you qualify for a one off £2000 payment.
    If you first became a member from 1st January 2013 until 31st December 2013 you are eligible for £1000. You will not receive any payment if you joined 2014.

    I'm sure the OP would have been notified by motability of the above when she returned the car.
    The OP lost their motability car last year as stated in their post. The motability Transitional aupport package only came into affect in April of this year, as stated here...
    http://www.motability.co.uk/about-the-scheme/personal-independence-payment-and-the-scheme/q-and-a-transitional-support-package
  • firefox1956
    firefox1956 Posts: 1,548 Forumite
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    Buy a cheap secondhand car.
    Plenty on the market........by cheap I mean circa £1000
  • Mutton_Geoff
    Mutton_Geoff Posts: 3,819 Forumite
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    firefox1956 wrote: »
    Buy a cheap secondhand car.
    Plenty on the market........by cheap I mean circa £1000


    Never mind £1,000, there are well over 100 cars within 30 miles of my address with a years MOT for £500 or less. Many of them look perfectly adequate for reliable daily use. Corsas, Clios, Astras, Kas etc. Many from backstreet dealers who might even offer a brief and limited warranty.


    Bangernomics offers sensible advice - http://www.bangernomics.com/free-buying-guides.html
    Signature on holiday for two weeks
  • letthemeatcake
    letthemeatcake Posts: 249 Forumite
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    It was enhanced in April 2017 but has been going much longer as I have been waiting to be transferred from DLA to PIP assessment for several years now and have always planned to put the £2000 towards a new car if needed.
  • Nebulous2
    Nebulous2 Posts: 5,116 Forumite
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    poppy12345 wrote: »
    The OP lost their motability car last year as stated in their post. The motability Transitional aupport package only came into affect in April of this year, as stated here...
    http://www.motability.co.uk/about-the-scheme/personal-independence-payment-and-the-scheme/q-and-a-transitional-support-package

    That isn't what the link you provided says. It says the scheme was enhanced from then, by extending the period to return the car. The payment was in place before that in my understanding.

    The op and others find themselves in a very difficult place, but £2k could help get on the road with a cheap car.
  • poppy12345
    poppy12345 Posts: 17,954 Forumite
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    letthemeatcake wrote: »
    It was enhanced in April 2017 but has been going much longer as I have been waiting to be transferred from DLA to PIP assessment for several years now and have always planned to put the £2000 towards a new car if needed.
    Impossible since PIP only has only been out since 2013.
  • baza52
    baza52 Posts: 3,029 Forumite
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    poppy12345 wrote: »
    Impossible since PIP only has only been out since 2013.

    You need to look up the definition of the word several lol
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