Approval for car finance when in a debt plan
If you’re in a debt plan, it’s likely it will be a Debt Management Plan (DMP).
In many instances, lenders won’t consider a car finance application if you’re in this situation. This is because they won’t want to risk lending to someone who has previously missed or defaulted on payments.
Good news! At Red Potato, we specialise in providing car finance for those currently in a debt plan or with a Bad Credit History.
As a specialist bad credit car finance provider, we were initially set up to help people in debt plans. We recognise that if you’re in a debt plan you’re addressing your financial problems and working towards a more sustainable financial future. This makes you someone we would be more than happy to consider!
I’m in a Debt Management Plan (DMP)
If you’re in an informal Debt Management Plan (DMP) we will need information regarding your creditors. This will help us to better understand your situation and factor in your current debt payments.
We will consider your DMP payments when considering an affordable and realistic monthly payment towards a car.
Applying for car finance in a debt plan
We are a specialist bad credit car finance lender and base our lending decisions on your current circumstances and ability to repay the loan.
The type of finance agreement we provide is hire purchase. This means if your application is approved, you will borrow the money to purchase the car and pay this back with interest over 3–5 years. We will have ownership of the car until you have made all payments due under the agreement, then you will own the vehicle.
We offer finance from 19.9% APR to 29.9% APR. We will confirm the APR you are eligible for when we provide you with a lending decision. The APR you are offered is subject to our underwriting checks once we have received your documents and completed our affordability checks.
Representative example: Loan amount of £7,500 with a monthly repayment of £191.63 over a term of 60 months at a rate of 10.66% interest per annum (fixed). This is equivalent to 19.9% APR representative. Interest repayable is £3,997.80 with an option to purchase fee of £10.00. Total amount repayable is £11,507.80.
We’re here to help
A member of our team will help you through your car finance application. We will take a look at your current situation, including your income and expenditure and your monthly affordability towards a car finance agreement. As a car dealership, we can also recommend what car types and models would be a good option for you, whilst introducing you to some of our latest deals. Along with this, we have put together a useful guide on how to improve your credit score for future borrowing.
Red Potato is authorised and regulated by the Financial Conduct Authority (FCA) and provides car finance to customers through responsible lending and our commitment to treating customers fairly so you can be confident that we will never offer you a product that is not appropriate for you.