Car finance help

Humphris1805

I'm just after some financial advice.

My and my partner have 2 children, eldest is 4 and youngest 6 months. Well as expected, since having children our finances have been very strained. Pre kids, we spoilt ourselves and now ended up on a joint Debt Management Plan.

We live from month to month. We really are scraping by, if that. Well I still have my car on HP and paying a whopping £380 a month for it which is crippling us. But we 100% need a car between us for work etc.

Long story short, I've been accepted for a car on finance at £120 a month. I was planning on handing back my original car to the finance company (which I can do as voluntary surrender), take the shortfall and put it on my debt management plan then take on this new car and save over £200 a month.

I have no one to ask for advice. I just don't know what to do.

Any advice appreciated

foxy-stoat

So what is your settlement figure and the cars current value?

£120 a month for how many months, and what is the screen price of the new car?

shadow7uk

Are you allowed to take new credit whilst on DMP?

Terence_Burrows

shadow7uk wrote: »

Are you allowed to take new credit whilst on DMP?

You're less likely to be accepted as it is visible on your credit score. Being on a DMP i don't think looking for more credit would be in your best interest.

Terence_Burrows

Humphris1805 wrote: »

Long story short, I've been accepted for a car on finance at £120 a month. I was planning on handing back my original car to the finance company (which I can do as voluntary surrender), take the shortfall and put it on my debt management plan then take on this new car and save over £200 a month.

Is this from the same dealer or an entirely different one?

foxy-stoat wrote: »

So what is your settlement figure and the cars current value?

£120 a month for how many months, and what is the screen price of the new car?

I Second the above questions, without that information we can 't really advise for the best course of action.

molerat

Voluntary Surrender is usually the worst possible and most expensive way of ending a finance agreement. There will not only be a shortfall in the car value but added charges. Forcing the agreement into a debt situation, rolling it into your DMP then taking on new finance is, to put it in the nicest way, a silly idea.

EssexHebridean

shadow7uk wrote: »

Are you allowed to take new credit whilst on DMP?

You'd need to inform your debt management company and it would be up to them, I believe. Just taking the debt first could be seen as allowing the DMP to fail.

EssexHebridean

Humphris1805 wrote: »

I'm just after some financial advice.

My and my partner have 2 children, eldest is 4 and youngest 6 months. Well as expected, since having children our finances have been very strained. Pre kids, we spoilt ourselves and now ended up on a joint Debt Management Plan.

We live from month to month. We really are scraping by, if that. Well I still have my car on HP and paying a whopping £380 a month for it which is crippling us. But we 100% need a car between us for work etc.

Long story short, I've been accepted for a car on finance at £120 a month. I was planning on handing back my original car to the finance company (which I can do as voluntary surrender), take the shortfall and put it on my debt management plan then take on this new car and save over £200 a month.

I have no one to ask for advice. I just don't know what to do.

Any advice appreciated

Is your DMP managed? If so then you need to speak with your management company. I'd be astonished if they said yes though to be honest.

Have you reviewed your SOA recently to make sure no unplanned spending has been creeping in, and also to check that no costs have increased since you set up the DMP? It sounds as though perhaps there's not enough slack in it currently if you're struggling that much.

*edit* you were advised nearly a year ago to re-do your SOA as it appeared that it was not accurately reflecting your spending - did you do this? If so then post it either here or in your previous thread in DFW and we can take a look and see if we can help.

Sandyman1

Are you allowed to take new credit whilst on DMP?