Car finance whilst in DMP

3011gillian

We’re currently going through final settlement offers on our debt of £18. Currently pay £456 a month via step change on 7 accounts all between £500-£2500.

We have had a right pain in the bum with our car and we’d really like to get a new one. I’ve lost money this month (self employed) because I couldn’t get to work when the car was in the garage so we want something more likely to be reliable and not need lots doing come MOT time. New is tempting with the warranty/servicing etc and scrappage deals for our car which would mean we’d be able to finish paying our DMP (aiming for 2yrs) before we had to pay for much on the car but would be happy with something a few years old in good condition.

I keep seeing things about credit searches not seeing certain things and the score being made up etc but what would happen if we went to a garage/dealership and applied for their finance???
We think our next MOT will come to more than the car is worth so really need to do something so unfortunately keeping it until the end of the dmp is not a valid option.

[Deleted User]

3011gillian wrote: »

I keep seeing things about credit searches not seeing certain things and the score being made up etc but what would happen if we went to a garage/dealership and applied for their finance???

They will search one or more of your credit files and assess your risk.

Are you allowed to apply for more credit while on a DMP?

sourcrates

3011gillian wrote: »

I keep seeing things about credit searches not seeing certain things and the score being made up etc but what would happen if we went to a garage/dealership and applied for their finance??? .

Hi,

To answer your question would demand a degree of Clair-voyance on my part, as its anyone's guess really.

You will have defaults/late payments, and/or arrangement to pay markers on your credit file, as a result of your DMP, all of which will result in a decline from most mainstream lenders, there are specialist lenders for car finance that you could try, Google would be your friend.

January2015

How long have you been on your DMP?

The answer won't make a difference to whether you can get credit at a good rate - which I very much doubt - but if you have been budgeting properly you should have been putting aside money each month for car maintenance/repairs. So whilst you car may be a pain in the rear this month, sometimes it's better the devil you know and if you've had the repairs done, then live with the car you have.

I think very few of us seasoned DMPers would ever go near credit for any reason again

3011gillian

Ok thanks all, I was just unclear about what they actually see when they do a credit search.
Yes we have been putting money aside for repairs but it’s unlikely to come close to what it will cost in the next year or two and putting more aside would mean reducing our dmp payment taking longer to clear our debts. We set aside for tyres brake pads etc general stuff not welding/break pipes/suspension etc non of which were advisory last year.

Thanks for all the advice I’ll have a think and try and sort something out.

January2015

3011gillian wrote: »

Ok thanks all, I was just unclear about what they actually see when they do a credit search.
Yes we have been putting money aside for repairs but it’s unlikely to come close to what it will cost in the next year or two and putting more aside would mean reducing our dmp payment taking longer to clear our debts. We set aside for tyres brake pads etc general stuff not welding/break pipes/suspension etc non of which were advisory last year.

Thanks for all the advice I’ll have a think and try and sort something out.

Contact SC and let them know you need to drop to token payments for a few months and use that money to either do major repairs on your car or alternative to buy a reasonably priced secondhand car. I do feel for you - we've been through similar, but there are options other than going into more debt.

SC know things like this happen.

3011gillian

January2015 wrote: »

Contact SC and let them know you need to drop to token payments for a few months and use that money to buy a reasonable car.

SC know things like this happen.

Thanks, Oh no I cant bring myself to do that its taken us a long time to get our debts organised and we really need to pay this off so we can then start saving for a house. Currently have 3yrs 4minths left on our DMP hoping to get that down to 18months depending on how the settlement offers go.
I guess worst case scenario is keep the car through one more MOT and hope our credit is good enough a few months after our DMP to then get a new car.