Anyone able to finance a car while on Debt management plan

originalgoonie

Hi,

I got a new citroen c1 in February 2012 on finance after I got ripped off big style buying two used cars that blew up on me within a few months of each other. In March 2013 I went into a debt management plan with step change which are a charity and I was allowed to keep the car finance in the budget.

My contract for the car finishes in six months and I can either part exchange for a new car, pay off the remaining £3k to own it outright or just return it.

Well I don't have £3k and I need a car for work. I have to have something reliable and can't afford to risk buying another old banger that will require constant repairs.

Best option for me is to part exchange my car for a new one. Obviously concern is now my credit rating is bad although no IVA's/CCJ's/bankruptcy. I would still be allowed the money to keep financing a car in my debt plan budget.

Anyone had experience of still being able to finance with citreon on a DMP?

Thanks.

darkmatter101

I don't mean to cause offence but if you were already in financial problems why did you opt to buy a new car, probably worth what, around £8k?

You would have been better off buying an older car worth £2k, once you have checked over its service history etc. I bought a 2000 Toyota Yaris last year for only £900. No problems.

originalgoonie

/Could I have positive replies only please and no bashing over my finances! I wasn't in bad finances when I got the new car! I tried the older car thing checked service histories etc still had bad luck thanks. Things snowballed from other issues after I got the new car that made me go into a DMP.

I'm just asking for advice about still being able to finance not about trying to get another old car at a risk.

Thank you.

BeenThroughItAll

darkmatter101 wrote: »

I bought a 2000 Toyota Yaris last year for only £900. No problems.

Except for never being able to overtake anything, I assume, since it should be illegal?


OP - there are finance companies who will take on people in DMPs, IVAs, etc, but their finance rates are abysmal and you may find you won't be allowed by your creditors to take out finance at a higher repayment which will reduce your total DI.


Have you asked the garage who organised your C1 about options? You may be able to continue payments or trade it in for another vehicle on the same scheme for same repayments.

darkmatter101

originalgoonie wrote: »

/Could I have positive replies only please and no bashing over my finances! I wasn't in bad finances when I got the new car! I tried the older car thing checked service histories etc still had bad luck thanks. Things snowballed from other issues after I got the new car that made me go into a DMP.

I'm just asking for advice about still being able to finance not about trying to get another old car at a risk.

Thank you.

Rule of thumb I have always followed throughout my life. NEVER get anything on finance/loan if you cannot afford to buy it upfront. Of course a mortgage for a property is another matter but generally for everything else always avoid that route. Live within your means. This is exactly why I now drive a E92 BMW M3, all paid in cash.

motorguy

BeenThroughItAll wrote: »

Except for never being able to overtake anything, I assume, since it should be illegal?


OP - there are finance companies who will take on people in DMPs, IVAs, etc, but their finance rates are abysmal and you may find you won't be allowed by your creditors to take out finance at a higher repayment which will reduce your total DI.


Have you asked the garage who organised your C1 about options? You may be able to continue payments or trade it in for another vehicle on the same scheme for same repayments.

As above really.

They'll stiff you royally on the finance rate or you'll end up with one of those car companies that stiff you royally on the price of the car AND stiff you royally on the finance.

Also, from memory of when helping a friend, i thought one of the DMP conditions was that you didnt take on any further loans, overdrafts etc?

Personally, if i was in that situation, i'd take the time to find a decent well maintained car being privately sold (hard to do but possible) thats petrol, has a years MOT and no known faults. There are cars about like that from £500+, if you're prepared to look.

darkmatter101

motorguy wrote: »

Personally, if i was in that situation, i'd take the time to find a decent well maintained car being privately sold (hard to do but possible) thats petrol, has a years MOT and no known faults. There are cars about like that from £500+, if you're prepared to look.

I concur. OP if you really bothered to look you and did a bit of prior research, could have found a small car in VERY good condition for £2000. Instead you decide to go on a finance deal for a brand new car worth four times the amount. Very silly.

darkmatter101

originalgoonie wrote: »

/Could I have positive replies only please and no bashing over my finances! I wasn't in bad finances when I got the new car!

Clearly you weren't in the best of finances if you opted to get a car on finance rather than pay in full!

OP this should be a lesson for you. This was exactly why we had an economic crash back in 2008. People simply buying everything on loan/finance living out of their depth.

darkmatter101

BeenThroughItAll wrote: »

Except for never being able to overtake anything, I assume, since it should be illegal?

No I dare not to overtake with my Yaris. I only use it as a run around in town (daily beater), never really going above 40 mph and never take it on the motorway.

AdrianC

There's a lot of retrospection in the above replies.

The OP's situation RIGHT NOW is that they can pay £3k for this car, pay a different/smaller amount for another car, or go back on tick for another new car.

In that situation, normally, the £3k would be about the obvious choice. But if we cross that out, what then? Get reamed for sub-prime finance (on a used car, few sub-prime deals on new), or take a lottery with bangernomics. Sure, sometimes that works out well. Often, it doesn't - and if the OP's after a grand's worth of running costs on a par with those they're used to with the C1, then the odds go strongly against. The OP had their fingers burnt prior to taking on the C1 finance, so I can understand the reluctance.

In that position, trying to find finance for the £3k to keep the C1 seems the least-worst route. If you're still under your DMP, have you spoken to them?

...and, no, DarkMatter, buying an M3 is NOT the right suggestion here either...

OddballJamie

I believe I've seen DarkMatter's Yaris around, it had this in the window.