In a DMP but needing a new car...

321654987 wrote: »

Yes, you have a point. But realistically there is more chance of a 15 year old car needing repair than a new one.

It is used for approximately 25 miles / day so roughly 500 miles / month. Nothing at weekends, evenings etc.

There's a middle ground you know!


Most cares lose the bulk of their value after the first cycle of these PCP/HP/whatever these finance gubbins are called.


Go for an approved used at 3-5 years old, look up the current charts for most reliable cars that match your requirements and go from there. That way you'll save the new car premium, be likely to do your lower monthly payment thing AND have a reliable car. Win win win surely?


Edit: As above, once you save that £1k a month you'll be able to buy a very decent car outright soon enough also!

I've just done a quick search and for that suggested 2k budget have turned up cars as new as a 61 plate - my search also included low road tax so everything I found will be sub £100 p/a for that too. Those results were also all from trade sellers not private - you at least have some comeback if what you buy turns out to be not what they claimed it was, then.

Don't go down the PCP route or going back into more debt, with a small one on the way. You are going to need the extra cash. I certainly know the feeling about car issues with kids on the way etc. When our 2nd was born just over a year ago now, my wife's car didn't really move for a couple of months. I took to it work after it sat there for three months to give it a run, it didn't get used regular for about 6 months, just the odd to trip to the shop etc, so you will need to take that into consideration too. So the running cost of your two cars should be down. I would personally work with what you currently have and save the money to buy a better car once your DMP is paid in may.

PS you don't need to spend massive amounts to get a reliable family car. last year i spent £1600 on a Lexus IS200 53 plate, with 85K miles on the clock and full lexus service history. All i have spent so far is general running cost and couple of tyres. Its a just an example i would like to share.

When I went on maternity leave I just scrapped my car (didn't pass it MOT) and walked everywhere. As long as whoever gets another car within two years I think the no claims bonus is protected. If you are wanting to move in 2018 won't your defaults will still be on your credit file? I would suggest resisting the urge to splurge and focus on building your credit file back up. Any outstanding credit amount can more than triple itself in the affordability test and defaults on your file will be a big enough barrier to getting a decent rate etc?

I recently voluntary terminated a car on PCP after starting my DMP.

I used some months of non-payment to creditors to save a lump sum to buy a good condition 12 year old car from a trusted trader. I found a number of issues during the 30 day warranty afforded by the consumer rights act which the trader fixed no questions asked. I'm really happy with my car (which even has ISOFIX) and would never enter into a PCP again.

Your defaults from 2015 and 2014 will make getting a mortgage very difficult. It doesn't really matter that they were settled. You may need to reconsider this plan or at least get advice from an independent mortgage broker who specialises in adverse credit mortgages.