Welcome to the forum fm097.

A couple of aspects to this:

You’re allowed to obtain car finance, but you’ll need to find one who is prepared to offer this finance. There aren’t many providers, the rates are high, and they may require written consent from your trustee.

You’ll also need to consider whether your trust deed payment will remain viable after you take on a new expense. This may require a conversation with your trustee to make sure a problem isn’t caused.

Hi fm097

TDA is correct.

In my experience, the finance company will also want written permission from the trustee in order to obtain finance and in most cases, whilst the trustee may not have any issue with you obtaining finance, they are very unlikely to provide written permission to the finance company.

I would recommend speaking with your trustee.

Hi fm097,

Do you currently have a car on finance that you are making payments for?

As TDA has advised both you and your Trustee will need to be confident that if you are able to secure car finance that you can still maintain your payments to the Trust Deed and it’s affordable for you.

When you are shopping around for finance make sure you pay attention to how much interest you will pay back for the finance. As your credit rating will be poor you may be charged a very high amount.

Another option if the interest is too high is for someone else to purchase the vehicle and for you to use this. That could keep the interest low and therefore the payments low.

The important thing is to discuss it all with your Trustee to find a solution that works for all parties.