With mainstream or Prime vehicle finance having a Debt Management plan in place would prove a significant obstacle towards getting a new car finance plan in place – if not impossible. Even if you have been making repayments without fail on this agreement for a number of years it still wont matter to the lenders risk department. In short you have still shown that you were unable to maintain a number of finance obligations and the defaults notices received along the way will testify to this. A Debt Management Plan is set up by effectively halting the required payments on most if not all credit agreements and so in the eyes of any potential lender this doesn’t look great. It also tends to hand around for some time too – with 6 years being the time frame before a default of CCJ is removed and this is usually once it is satisfied. With some DM plans stretching 5 or 6 years or even longer you could be looking at more than 10 years before your credit report starts to clear up!
So Debt Mangement can actually help?
The good news though is that we specialise in offering vehicles for ALL types of credit rating and so this means that even if you think you have the worst possible record MSG Cars can help. The lenders we work with have tailored their business to take these factors into account when underwriting cases. Often customers with items like a Debt Management plan can be a better proposition than those who have simply let things drag on without dealing with them. A specialist lender will have a much wider lending criteria than your typical Mainstream company and this shows in the Acceptance rates we have for those in a DM plan.
Does being on a Debt Management plan mean a higher cost?
As with all Non Prime car finance or you will always pay a premium over someone with a perfect credit rating but it doesn’t necessarily mean it will be the most expensive. In our experience those on DM plans can often score towards the better end of the scale meaning that the finance companies system takes into account consistent repayment on defaulted accounts while also looking at other factors such as voter roll trace and visibility at the addresses listed for living at. So while having bad credit on you file can mean its more difficult to get approved it isn’t the whole picture and by simply making sure you are registered to vote you could quickly improve your chances!
How does it work then?
All we ask once a customer is looking to proceed is that they complete an online application form via our website. This gives us all the information we need to consider a Debt Management Car Finance plan and usually we will receive an instant decision on the funding upto £25,000. The only additional items that are usually required after this are copies of drivers licence, passport and proof of salary – that’s it. Your car is selected from any available in the UK upto 7 years old and once happy with the payments and deposit your finance agreement is emailed for you to sign and scan back.
