Hi Mastyk and welcome to the forum.

I think the first issue might be the ability to secure car finance. In my experience it’s very difficult for a client who is subject to a Trust Deed to secure any sort of loan or finance. In the small number of cases that I’ve dealt with who have been successful in securing the finance the level of interest that the client would repay is extremely high. One client was looking to purchase a car worth approximately £7,000 and the payment was around £266 per month which they felt was affordable. When we looked at the interest in total they paid back approximately £16,000. More in interest and charges than what the car was worth. If you do think that within your budget you could afford car finance then your best to shop around and be honest and up front with the salesman about your credit history and that it will be pretty poor. If you are able to secure finance then really consider the payment per month and the level of interest you will pay back.

The money which you have put into your car in the last 12 months is this for things that are expensive but will hopefully prolong the life of the car outside of wear and tear problems? I’ve got an older car myself and just spent over £800 on new parts (clutch and timing belt) but these are parts which should prolong the life of the car outside of the usual tyres, brake pads etc. If that’s the case then you might be able to nurse the car through the next couple of years.

In terms of using mail order to cover the cost of Christmas you need to weight up the financial costs that this would have and how it would impact on your budget. Getting into further debt so soon after entering into the Trust Deed should really be avoided at all costs.

If for example you took our car finance at £200 per month then had another £100 per month to pay back in mail order items could your budget sustain an outgoing of £300 per month? If so then the question could be that you could pay more towards your Trust Deed for the benefit of your creditors. You also then have to think about future expenses and costs such as next year’s Christmas and also birthdays. You could very quickly find yourself in another 10-15k of debt and then the possibility of your Trust Deed’s failing because of this.

I would take a step back and really look at your budget, could you nurse a car through another 12-18 months or longer and it is possible to have a restricted Christmas this year to ensure that you are financially better going forward.

I was told by my Trustee that car loans would be possible as most are secured on the car and any missed payments would result in the car being re-posessed.
I need to hand my car back in 18 months as its on a PCP deal and I'm really worried that I won't be able to secure some sort of finance to change my car as I really need a car for work. I don't care if its an older car or smaller car but the last thing I want is to be left without a car in 18 months time.

Hi Roverrunner76,

In my experience it can be difficult for someone who is subject to a Trust Deed to obtain car finance even if this is secured against the car and at a reasonable interest rate.

I’m not saying that you won’t get the finance but you need to be prepared for this possibility in 18 months’ time. When I initially speak with a client and they have PCP finance or a lease agreement I always advise them it could be difficult to secure a vehicle later on down the line when their agreement comes to an end.

You might have to consider alternative options to finance in your own name such as a friend of family member assisting or buying a car for cash.

Would a joint application help ? If my wife and I made a joint application and her credit score was ok would that help ? I obviously wouldn't be looking for anything fancy, just a 4 to 5K practical runabout to get me to work and back and help me take my family on inexpensive day trips / weekends away.

If your wife has a good credit rating and isn’t on a Trust Deed then she could purchase a vehicle and allow you to use this.