Car Credit after DMP?

Rookie1986

Hi all,

I'm hoping for some advice in regards to obtaining car credit after completing a DMP. The plan will be complete as of next month but does that mean I've still got 6 years to go before I'd qualify for car finance from a main dealership??

Any help/advice would be appreciated.

sourcrates

Rookie1986 wrote: »

Hi all,

I'm hoping for some advice in regards to obtaining car credit after completing a DMP. The plan will be complete as of next month but does that mean I've still got 6 years to go before I'd qualify for car finance from a main dealership??

Any help/advice would be appreciated.

Depends, have all your credit accounts defaulted ?

If so when ?

You need to check your credit files, 6 years from date of default, the defaults will be gone, and your credit file returned to normal.

Rookie1986

My credit file shows consecutive red "D"'s dating back to around April 2014 on the three accounts that I've defaulted on, the other accounts that are open and have been paid show green markers dating back to the start of the accounts. I cleared my car finance back in October (never missed a payment) but my credit score of 511 has been the same for as far back as I can remember (over 6-9 months).

sourcrates

As soon as the "D's" have gone, your file will be a lot more interesting to prospective lenders.

It's all a matter of time.

Rookie1986

And how long does that usually take?

Slowmonkey94_2

irrespective of the defaults and your creditscore there are lenders who still provide car finance for those with a bad track record they base this solely on affordability however some of the interest rates can be eye watering for example one company know of well charge 53% APR but will approve absolute anyone however you have to buy your car off them i also know of another which dont credit score but they do obtain your credit file and sit down with you go through anything on there and ask how it happened and providing you can afford repayments they give you a credit limit then tell you to go shopping there APR is high but its more sensible at 19.9% you have to be so careful ( in the least most patronizing way i rushed and bought a car on hp cos that shiny new fast diesel was calling for me then i agreed to pay 280 a month separated from my partner lost my home and job and was stuck with a 14000 pound debt for a six grand ish car i know what your thinking im just saying it may be better off waiting for your defaults to drop off and get a much better deal but there are more options just incase you aren't in a position to do without e,g work commitments
i can only apologize for the lack of punctuation and gramar

Rookie1986

slowmonkey94 wrote: »

irrespective of the defaults and your creditscore there are lenders who still provide car finance for those with a bad track record they base this solely on affordability however some of the interest rates can be eye watering for example one company know of well charge 53% APR but will approve absolute anyone however you have to buy your car off them i also know of another which dont credit score but they do obtain your credit file and sit down with you go through anything on there and ask how it happened and providing you can afford repayments they give you a credit limit then tell you to go shopping there APR is high but its more sensible at 19.9% you have to be so careful ( in the least most patronizing way i rushed and bought a car on hp cos that shiny new fast diesel was calling for me then i agreed to pay 280 a month separated from my partner lost my home and job and was stuck with a 14000 pound debt for a six grand ish car i know what your thinking im just saying it may be better off waiting for your defaults to drop off and get a much better deal but there are more options just incase you aren't in a position to do without e,g work commitments
i can only apologize for the lack of punctuation and gramar

My current issue is that the car I own spends about as much time in the garage as it does on the road, over the last three months alone I've has several repairs which have been costly (rewiring of front headlight cluster, replacement of coil pack sensor, oil pressure switch and next week its going back in again for its second timing kit replacement within 2 years) this doesn't include the standard stuff like new tires, servicing, MOT, road tax etc etc. The car is 6-7 years old and has less than 60k on the clock, so these issues really shouldn't be arising and over the four years since I bought the car all I seem to have is another issue £££ every month.


I have 6 years from this month to wait for the "D's" to fall off my account, in all honestly I don't believe the car has that many years left in it, its the only second hand car I have ever owned. I've always bought new until losing my job in 2012 resulting in my current financial situation. At the time I exchanged my new car for the second hand one as a means to lower the monthly payment to keep it manageable until my employment situation improved (all payments have been made in full and on time). Fast forward to today (2017), I'm back in full time employment again and earning "reasonable" money. As of this month all my outstanding accounts with my creditors have been settled and I'm at a point where I want to start rebuilding my credit score, not for credit cards and loans but to enable me to get a mortgage and finance on a reliable "new" car.


Unfortunately from the sounds of things this isn't going to be possible in my current or foreseeable future so I guess I'm stuck throwing money down the sinkhole that is my current car.

MrsTinks

No... the D's will drop off 6 years from when you defaulted the accounts. Doesn't matter when you paid the debt off, it's from default date.

You say April 14? Do you know if you actually defaulted before then as if you did then you can get them to update the default date and it would drop off sooner. As it is you're looking at about 3 and a bit years and in that time you can make a start on rebuilding your credit file anyway.

Not to mention if you are not paying for your DMP you will be able to stick that amount in savings towards a new car

Rookie1986

MrsTinks wrote: »

No... the D's will drop off 6 years from when you defaulted the accounts. Doesn't matter when you paid the debt off, it's from default date.

You say April 14? Do you know if you actually defaulted before then as if you did then you can get them to update the default date and it would drop off sooner. As it is you're looking at about 3 and a bit years and in that time you can make a start on rebuilding your credit file anyway.

Not to mention if you are not paying for your DMP you will be able to stick that amount in savings towards a new car

My credit file shows my default date as October 2015 when Barclays sold the debt over to a collections agency. I have questioned this with the credit agency, Barclays and the company who bought my debt and non seem to care/want to help, so I've still got 5 years to go unfortunately...


Some of my defaults predate April 2014 but I believe one was defaulted when I entered my DMP around that time. So even in a best case scenario we are looking at April 2020 before it would disappear and then I would still require several years to rebuild my credit file so maybe 2022/2023 before I would be eligible for finance on a car.


I guess that's one plus, I'm able to save some money each month now, unfortunately it will take around three and a half years to save enough to buy a car outright hahahaha!!

sourcrates

Try buying second hand parts.

Go to a scrapyard with a basic toolkit, you find a similar model, remove whatever parts you need, fit them yourself (reversal of removal) you can save hundreds doin it yourself.

You can't do every part yourself, but a headlight for example, inc wiring, would be approx £20 and simple push fit connection, price new would be 5x that plus VAT.