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  • FIRST POST
    • sherri71
    • By sherri71 10th Sep 17, 3:24 PM
    • 4Posts
    • 1Thanks
    sherri71
    Car loan needed after Motability car taken off me
    • #1
    • 10th Sep 17, 3:24 PM
    Car loan needed after Motability car taken off me 10th Sep 17 at 3:24 PM
    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
Page 1
    • venison
    • By venison 10th Sep 17, 4:01 PM
    • 1,294 Posts
    • 1,388 Thanks
    venison
    • #2
    • 10th Sep 17, 4:01 PM
    • #2
    • 10th Sep 17, 4:01 PM
    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.
    I am now a Board Guide on the Credit card board and the Loan board and Benefits board (But give me time to learn the ropes thanks).
    • Nebulous2
    • By Nebulous2 10th Sep 17, 4:18 PM
    • 1,627 Posts
    • 988 Thanks
    Nebulous2
    • #3
    • 10th Sep 17, 4:18 PM
    • #3
    • 10th Sep 17, 4:18 PM
    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
    • By letthemeatcake 10th Sep 17, 4:43 PM
    • 203 Posts
    • 130 Thanks
    letthemeatcake
    • #4
    • 10th Sep 17, 4:43 PM
    • #4
    • 10th Sep 17, 4:43 PM
    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
    • By poppy12345 10th Sep 17, 4:46 PM
    • 1,700 Posts
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    poppy12345
    • #5
    • 10th Sep 17, 4:46 PM
    • #5
    • 10th Sep 17, 4:46 PM
    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.
    Originally posted by letthemeatcake
    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
    • By firefox1956 10th Sep 17, 4:50 PM
    • 1,337 Posts
    • 758 Thanks
    firefox1956
    • #6
    • 10th Sep 17, 4:50 PM
    • #6
    • 10th Sep 17, 4:50 PM
    Buy a cheap secondhand car.
    Plenty on the market........by cheap I mean circa £1000
    • Mutton Geoff
    • By Mutton Geoff 10th Sep 17, 5:24 PM
    • 956 Posts
    • 1,001 Thanks
    Mutton Geoff
    • #7
    • 10th Sep 17, 5:24 PM
    • #7
    • 10th Sep 17, 5:24 PM
    Buy a cheap secondhand car.
    Plenty on the market........by cheap I mean circa £1000
    Originally posted by firefox1956

    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
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £3,963

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • letthemeatcake
    • By letthemeatcake 10th Sep 17, 5:57 PM
    • 203 Posts
    • 130 Thanks
    letthemeatcake
    • #8
    • 10th Sep 17, 5:57 PM
    • #8
    • 10th Sep 17, 5:57 PM
    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
    • By Nebulous2 10th Sep 17, 5:57 PM
    • 1,627 Posts
    • 988 Thanks
    Nebulous2
    • #9
    • 10th Sep 17, 5:57 PM
    • #9
    • 10th Sep 17, 5:57 PM
    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
    Originally posted by poppy12345
    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
    • By poppy12345 10th Sep 17, 7:02 PM
    • 1,700 Posts
    • 1,525 Thanks
    poppy12345
    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.
    Originally posted by letthemeatcake
    Impossible since PIP only has only been out since 2013.
    • baza52
    • By baza52 10th Sep 17, 7:45 PM
    • 2,037 Posts
    • 1,989 Thanks
    baza52
    Impossible since PIP only has only been out since 2013.
    Originally posted by poppy12345
    You need to look up the definition of the word several lol
    • sherri71
    • By sherri71 10th Sep 17, 8:35 PM
    • 4 Posts
    • 1 Thanks
    sherri71
    Hi everyone
    Thanks for the replies. Yes I did receive the transitional payment from Motability but unfortunately I had to use it for everyday living costs as my benefits were so drastically reduced after my first PIP assessment that I literally couldn't afford to live. I went to a tribunal a year later when my health would allow, in January this year and they awarded me the lower rates of PIP so I'm better off than I was but still recieve half the amount I've had for the last 10 years. I can just about afford to pay my outgoings with just a small amount extra. I've thought about trying to save up for a cheap car (£500ish) but the thought of breakdowns/repairs etc puts me off and coming up with the cash outright would be a struggle. I don't want a really expensive car, just something I would be confident wouldn't break down but I suppose you can never be sure with any used car. I could probably afford to pay £100 a month tops
    • Car1980
    • By Car1980 10th Sep 17, 8:50 PM
    • 233 Posts
    • 112 Thanks
    Car1980
    You say the root of your problem is bad credit. What exactly do you mean by this?
    • sherri71
    • By sherri71 10th Sep 17, 9:38 PM
    • 4 Posts
    • 1 Thanks
    sherri71
    I have a CCJ and defaults
    • Rejast
    • By Rejast 11th Sep 17, 11:06 PM
    • 44 Posts
    • 78 Thanks
    Rejast
    Just a few thoughts for you.
    Even if you could afford and get a car loan you would still have the same issues with regards to repair costs, breakdown costs etc. So you could potentially end up paying a loan payment on a car that you have to take off the road for a while whilst you save up for repairs.
    Lots of car insurance companies and banks offer free or discounted breakdown cover.
    Surely if you can afford £100 per month to pay a car loan you could afford to put that same £100 away
    for a few months to buy a cheap run around then continue to save it as a rainy day/car breakdown/repair fund.
    As a side note one of my favourite cars was a £250 trade in car and was the only car I have owned that didn't cost me anything in repairs other than normal wear and tear items.

    Good luck and I hope you find a solution soon, I remember how isolated I felt when I was off the road for a while.
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