Car Finance Debt Management Plan – Complete Guide & FAQs

Are you trying to get car finance but are in a Debt Management Plan (DMP)? We understand that this can be a worry. Many people share your concerns, but we’re here to help. Each month, over 170,000 people visit us for advice on debt solutions.

We’ll share with you:

• An easy-to-understand guide on DMPs and car finance.
• Steps to take if you’re finding it hard to manage.
• How a DMP might affect your ability to get car finance.
• The possibility of writing off some of your debt.
• Other options if a DMP doesn’t work for you.

We’re aware that being in a DMP and trying to get car finance can feel daunting. But remember, you’re not alone. Our team has offered guidance to many people in your situation, and we’re ready to help you too. Let’s explore this topic together and find the best solution for you.

Car Finance DMP

Some debts cannot be included in your debt management plan. These include car loans or car financing. And for people coming out of a debt management plan, it is even harder to get a decent car finance deal.

This is because a DMP stays on your credit profile and has an impact on your credit score. People with bad credit have a hard time getting car finance. The car finance company looks at your credit score and decides whether or not to give you the loan.

There are some companies that specialize in providing car finance for people with a bad credit rating. Red Potato is such a company registered in England. They are authorised and regulated by the Financial conduct Authority. 

Companies like this look for a suitable car and a financing deal for you. Then they connect you to the client and get you the possession of the vehicle on credit. Basically, the company talks to the lenders and convinces them to give you a debt to finance your new car.

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Red Potato also provides hire purchase agreements, even if you have got a bad credit score. 

This means that it is not entirely impossible to get a decent vehicle even if you have a debt management plan on your credit history.

Credit car finance is otherwise pretty difficult to get for people in a debt management plan as it is harder for people with bad credit history to get a loan.

Frequently Asked Questions (FAQs)