can i get car finance if in dmp

Jenjen

Hi,
We asked Step Change similar questions last year as a car is essential for my husband's job and it need to be one that is up to the job of doing 25,000 miles a year. He gets a car allowance for this but it has reached the point where the car allowance no longer covers the costs of keeping the car on the road. Step Change told us that in our situation getting car finance (paid for by above mentioned car allowance) would not jeopardise the DMP because without it there would be no income to pay the debts at all. But I think that was because of the fact that the car is essential to the job and technically my husbands employer are paying for it. However they did warn us that we would be unlikely to get a good finance deal because of the DMP and at best we would get a very high interest rate. They said we would be better looking at leasing instead. In the end we decided to fix the car again and we are still hoping to keep it going as long as possible.

poppasmurf_bewdley

Jenjen wrote: »

Hi,
We asked Step Change similar questions last year as a car is essential for my husband's job and it need to be one that is up to the job of doing 25,000 miles a year. He gets a car allowance for this but it has reached the point where the car allowance no longer covers the costs of keeping the car on the road. Step Change told us that in our situation getting car finance (paid for by above mentioned car allowance) would not jeopardise the DMP because without it there would be no income to pay the debts at all. But I think that was because of the fact that the car is essential to the job and technically my husbands employer are paying for it. However they did warn us that we would be unlikely to get a good finance deal because of the DMP and at best we would get a very high interest rate. They said we would be better looking at leasing instead. In the end we decided to fix the car again and we are still hoping to keep it going as long as possible.

You made the correct decision, and the one that the OP has been advised to do. There are very few items on a car that cannot be fixed, and they are all (much) cheaper than getting a newer car.

dazla

~Beanie~ wrote: »

You will also probably find that it is against the terms of your DMP to take out further credit.

No its not against the terms of a dmp, I got car finance with red potato, all other main dealers turned me down. I'm with Payplan, ok , so the interest is higher, but at least i now have a car

dazla

I got car finance with Red Potato, through Payplan. I am in a DMP.

Rossim1985

The cars you can buy these days for under £500, even under £300 are so much better than what you could get for the same money even just 10 years ago. Just go on autotrader and buy something super cheap outright.

I disagree with the person who said above that fixing a car is always cheaper. I recently got rid of a very sickly Ford Focus. It had had almost £2,000 worth of repairs in the last 2 years, and £4,000 in the past 5 years, which is utterly ridiculous, and I wished I'd got rid of it sooner. There is a point when a car just becomes a money pit.

With a £300 car even if it only lasts 6 months, and you then get £200 for scrapping it, that's not bad going!