Quick DMP query

DebtMagnet · 22 September 2016 at 4:41PM

I apologise in advance if the answer to this is already noted somewhere on the forum but I am in work and need a quick idea of what my options are.
Having taken advice on here previously I have now been on a DMP for two years. For the most part it has all been working well and I can see some light at the end of the (very long) tunnel.
My problem is that my car has failed the MOT and the work it needs to get it through makes it uneconomical to do. In addition I have been driving the car for 3 months with a bad misfire and have been told I may need a new engine to solve it (which I didn’t have the money to do so have just been putting up with it).
So basically there is no point me spending the money required for the MOT when I will still be left with a car that may need a new engine. As I can’t do the school runs and do a full day’s work if I use public transport, I either need a car or have to reduce my hours (which reduces my income too and would be crazy?)
So my question is, what do I do to get a new car when I’m on a DMP?
I can’t get credit for a new car because I’m on a DMP (but even if I was credit worthy – I am not allowed to take on extra credit under the terms of my DMP).
I also don’t have savings with which to buy a car for cash (obvious) and all my income is accounted for each month with only a little left over (if ever) for domestic emergencies.
So as far as I can see it my only option is to borrow what I can from family to try and get a banger to get me back on the road. But this has its own problems and risks and could end up costing me a lot in the long run if I end up buying someone else’s problem.
This must be a problem that other people have encountered. What did you do? What CAN you do?
Any help or ideas will be gratefully received as right now I have no idea how I’m going to be able to get to work next week??
Cheers
DM

abby1234519 · 22 September 2016 at 5:12PM

How much are you paying per month to your DMP? We make sure that we save up a fund to repair the car as it cost 2k last year (a few things went wrong) so whilst paying the DMP we've been building up a car repair fund

National_Debtline · 22 September 2016 at 5:13PM

Hi DebtMagnet

No easy answer but you should definitely discuss this with Stepchange (who I understand from your posting history are handling your DMP). It won't be the first time one of their clients has found themselves in your predicament midway through a DMP. Here are some questions to ask yourself before you discuss this with them:

How much cash are you likely to need to buy a car sufficiently robust to do what you need of it, taking into account mileage, frequency of use, type of journey i.e. urban / extraurban / motorway?

How much are you paying into the DMP each month? If these payments were put on hold, how long would it take you to accumulate the figure you need?

How different (if at all) are insurance/tax/fuel costs likely to be on the new(er) car from your existing one?

What, if any, plans do you have in the very immediate short term while you are without wheels? Any family/friends available to help with school runs as a stop gap?

If you were, for argument's sake, to borrow money from family in order to buy a car, what sort of repayment terms are they likely to seek? Is there any likelihood they would defer payment for the foreseeable future?

Dennis
@natdebtline

DebtMagnet · 23 September 2016 at 1:05AM

Thanks both for the replies.

Abby - thanks, I guess we didn't build in enough reserve for things like this. Its a difficult thing to judge between getting the debts paid off as soon as possible by putting spare cash in the DMP, and leaving yourself some spare to be able to deal with this sort of situation.

To be fair we did leave a spare fund but its always used by unexpected events like a tyre blowing or the exhaust falling off etc so never gets to build up to a sum that could be used in a situation like this.

Dennis - I appreciate you taking time to respond in so much detail and the questions you have noted are very useful in helping me focus on what I actually need to do from here so thanks for that.

As for plans right now, none that are any good is the answer. I am getting by with lifts etc but its already impacting on my hours in work so its not sustainable and hence me needing to take some action.

I'll see what Stepchange can recommend in the first instance.

Cheers
DM

sourcrates · 23 September 2016 at 12:10PM

Hi,

OP, I dont know which part of the country you are in, but there are certain garages that do a kind of car finance where there is no credit check, you have a little electronic gizmo installed in the vehicle which, once you have made your monthly payment, allows you to drive for another month, and so on, as long as payments are maintained.

Now this particular garage i saw advertised was in Grimsby, but i`m certain there will be others, maybe worth looking into ?

DebtMagnet · 3 October 2016 at 1:17AM

Thanks Sourcrates. I can honestly say that I have never heard of this but it is certainly worth exploring.

Thanks again
DM

Quick DMP query

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