Hello Mrs Mac.

If it's an unsecured loan the car itself would be paid for. You'd be the owner.

You'll therefore want to take a cautious approach by first getting confirmation from your trust deed firm that this will be acceptable and that the vehicle would not then be treated as an asset. I'd check about trade-in at the same time, though I doubt there would be any problem with that.

If it's a hire purchase loan the car would not be paid for (or owned by you) until the payments are completed. Therefore, until that time, such a car is unlikely to be seen as an asset.

You'll only find out whether you can get credit by applying. We understand that there are car finance providers offering credit to people with damaged credit ratings, though their perception of risk may mean that the rates aren't great. Having a guarantor may well help.

You may well be able to do something like this, Mrs Mac, but you should discuss it with your trustee first.

Is there anything wrong with the car you have got? If you are paying out a monthly payment for a newer car then you might be expected to justify why this is necessary, rather than those funds going to your creditors and you using the old car.

Thanks. My car is on its last legs. I am constantly paying for repairs and it's becoming unreliable. I work unsocial hours and unable to get transport to work or home due to silly hours ie starting at 7am finishing at 1am on other side of city. I need my car to get to work but live in fear of breaking down on way home in rough areas etc.

That seems reasonable then - will taking on the new car affect your ability to keep up the agreed payments to your trust deed?

I am not ready to do this yet but thinking what I can do when my car finally dies. I am going to try to keep it going for the last year of my td but need some back up plan "just in case". If it does happen I would have no option but cut back on essentials to get a car as I need to keep working to finish the td.