DMP + more credit

continualdiamond

After some advice, but please all be nice, don't be that harsh with comments.

Ok, so finally got my head out of the sand and for the past 3 mths have been doing a DMP on my own, with payplans advice. They can now take over (couldn't before as i had a sofa on a yr payment break and hadn't made any payments, so had 2 make 3 mths worth).

For the past 3 weeks my car has been a pain in the bum. Its old, 1997 and i've had 3 engine faults, now got a 4th fault on Saturday. Since found out the problems i've been having with my car are common for the model and can possibly end up being a whole new engine (which would cost more than the car is worth)

Im torn big time, do i keep 'trying' to find the money for the garage bills or do i get rid and get a better car?

My credit rating of course is shot to pieces since doing the DMP, but i got approved for £3000 car loan, on a 2002 car. I know getting more credit is a silly idea, but i can't go without my car. It's not reliable anymore, it went hay wire on me on saturday,reving the engine itself, dash lights on, then off and like i said its had 3 things 'fixed' already, it seems once one is done another fault appears.

What do people think? Do i take the risk and keep my 1997 car or do i take this car loan i've been offered and get the 2002 car?

(i know deep down, people are gonna say, don't get the 2002 car, but :mad: it's a car, i need it for work, or sometimes my partner needs it for work and he drops me off and my current one is driving me nuts - as it is, its not driveable, so had a horrible weekend)

rayday2

I think what you aren't saying is what the apr is, who you are going with and how much it is costing a month - just trying to justify the purchase, I can tell you need a car but its just is it that this car with what kind of deal you have - if that makes sense!

continualdiamond

The apr is very high, which i expected 36.9%, i didn't think id even be approved. It will cost £112. Company is one that the garage deals with directly. Yes its a lot of money per mth, but i have no chance of like 6% or something. In the past 3 weeks my 1997 car has cost me £270 in repairs, im scared of what it will cost me again when i get it towed to the garage later on.

rayday2

That apr even by other car people is extorinate - yes car type people offer 19% which is bad enough I would definately rethink!

Afterall car finance is secured on the car so they are onto a winner and it is usually the easiest of finances to get!

rayday2

Sorry just another question I put that in a snowball calculator and at those payments it came out around 5 years the finance, is that right because the car you are buying is only 5 years newer than the one you have so potentially you could be in the same place as the finance runs out or before - car maintenace wise. Snowball came out that you will pay nearly £6,000 for the privelege of that - its a lot to think about.

misspoppy

I think you'll find you are not permited to take on more debt if you are in a DMP you would be better trying to find a cheap run around until things are better.

continualdiamond

Thanks rayday, yes you're right, the car is on 5 yrs finance. Thanks for doing the snowball cal, it is a lot 2 think about, £6,000 for the privelege. I guess its difficult, when my current car is causing such headaches it's easier to just 'throw' in towel with it and give up.

Im not actually on a DMP with payplan yet, that is why i need to make this decision quick, as i know when its all set up, getting more debt is completely out of the question.

Unfortunately finding a cheap run around is not an option, i don't have that kind of money to buy another car. I can only drive automatics, so they don't come cheap anyway. Rather get my current car fixed.

rayday2

I honestly know how you feel I know people say it but years ago our prop shaft was going on our car and we ended up at yes car credit they were so shoddy the way they did business and luckily we did not sign anything. Sadly on the way back the prop shaft did go we were popping to see my gran on the way back, we ended up getting towed home and next day my mum rang to say my gran had died - that kind of put the car into perspective. Actually fixing the prop shaft was cheaper than we thought too.

Fast forward a few years we are on a DMP five of us in the family driving round in an Astra, lots of potential work needed on it and obviously a struggle to fit us all in. We knew we would not be able to get car finance at a decent rate.

Im babbling on just want to say I understand but maybe if you chat amongst the family someone can come up with something, a better garage for car repairs, better finance deal, short term loan for repairs. Sometimes when our backs are up against the wall we come up with the better ideas.

CLAPTON

how you do plan to handle the debt if you do take out the loan

are you going to default on the loan and include it in the DMP or
are you going to pay it in preference to your other debtors and how will paypaln /cccs view this?

continualdiamond

Thanks so much rayday, you've been great. Advice i wanted to hear, i dreaded getting replies of 'don't be so stupid' etc, really harsh comments. But yours have been honest and right to the point without making me feel awlful for posting.

Fortunately for us our garage have been great. Im new to them as they only look at engine faults, they felt so bad on my 3rd visit, they did the work for free, i was really shocked.

Im outta luck with better finance deal, got offered the same amount at 36.8%, jumped up to a massive 43.4% without pp....yikes....

My 1997 car is looking more attactive at the min, when it does work, its a great car to drive and for its age looks great. Just a few hiccups i guess at the moment.

continualdiamond

If we did take on the debt, where going to include it in our expenditure as priority debt. But from advice it looks like my 1997 car is winning in preference and sense.