FAQ – Debt Management & Car Finance

Thank you for your question and to answer directly, yes, we can help you get approved for car finance whilst in a Debt Management Plan (DMP). As the process is more complicated I have provided a more detailed reply below.

Being in a Debt Management Plan (DMP) likely means you weren’t able to meet the minimum repayments of your existing debts. You should therefore speak with your DMP provider before taking on additional credit agreements. Although DMP providers are known for being strict, they will likely authorise your request so long as the agreement is affordable and your reasoning for requiring the finance necessary.

When considering if the agreement is a necessity your provider will consider the following factors

How long your commute is to work – for many people their daily commute will make up for the majority of their cars usage. DMP providers will accept going to and from work as a vital reason for requiring car finance.

If you have any children and their age  – The dreaded school run, along with the daily work commute is one of the biggest usages of a car for many people. Ensuring your children can get to and from school every day is another reason a provider would deem a necessity.

Do you or close family members have health problems – when you or someone you care for has health problems being able to get from A to B, is another necessity your DMP provider will take into account when determining if your request for finance is necessary.

If you meet one of the above factors your provider will likely approve your request, but the above list is not exhaustive so you shouldn’t let this deter you from speaking with your provider.

Once your provider has approved your request to apply for car finance, you will want to ensure you find a car that is affordable. Our free car finance calculator can help you work out how much you can afford to borrow, allowing you to begin your search for a car that is both suitable and affordable.

Applying for car finance with bad credit

Being in a Debt Management Plan will almost certainly of had a negative impact on your credit file. The good news is Motorly have a panel of lenders, many of whom are sympathetic to those applying for car finance with bad credit, or those who are in an IVA or Debt Management Plan.