Can I Get Car Finance on A Debt Management Plan?
01 Dec 2025
Can I Get Car Finance on A Debt Management Plan?
01 Dec 2025
Can I Get Car Finance on A Debt Management Plan?
Being on a Debt Management Plan (DMP) can help you to take control of the money you owe, but it often leaves people wondering whether they can still get car finance. If your current car is unreliable, too expensive to run, or you don’t currently have one, the need to buy a car doesn’t go away just because you’re on a DMP.
While it is more challenging to secure car finance while on a DMP, it’s not impossible. Lenders may look closely at your affordability, credit file, and how well you’re managing your plan before making a decision. Whether or not you’re approved will depend on the criteria of the lender and your specific situation.
Autodosh is a credit broker, not a lender.
What Is a Debt Management Plan?
A DMP is a simple way to make your debts more manageable. Instead of juggling lots of different payments to things like credit cards or personal loans, your DMP provider works out one monthly payment. This is based on what you can realistically spare after paying essential bills.
While a DMP can make your finances easier to control, it can also have a negative impact on your credit file. This is because you’re paying back debts at a lower rate than you originally agreed. This doesn’t mean that you’re automatically ruled out for car finance, but it does change how lenders assess your situation.
Can I Buy a Car While on a DMP?
It is possible to buy a car whole on a debt management plan, but lenders will usually want to see that taking on new finance will not put extra strain on your budget. Here’s what lenders may be looking for:
-A record of stable debt repayments.
-If you can afford the new monthly repayments.
-Consistent, reliable income.
-Responsible DMP management.
Some lenders might also ask for permission from your DMP provider. Although your plan isn’t legally binding, it’s still important to ensure that taking on new debt won’t harm your plan or long-term financial stability.
Car Finance Application Checks While on a DMP
When you apply for car finance, the lender will run affordability and credit checks - regardless of whether you’re on a DMP or not. Here’s what they will normally be checking:
Credit Report
Your report shows your past borrowing behaviour, which is helpful for lenders when assessing your creditworthiness.
Affordability
Lenders will also look at your income, bills, and your DMP repayments to see if you have enough disposable income to afford your car repayments
Bank statements
Statements can help lenders to see how your money is being managed day to day.
Car Leasing with Debt Management Plan
Getting a lease on a debt management plan can be more difficult compared to other car financing options. Leasing usually requires a stronger credit score and can have stricter eligibility requirements.
Hire Purchase car financing might be a more realistic option for people on a DMP, as it’s usually based more on affordability. You can explore HP car financing options through our lenders for both new and used cars.
Things to Consider Before Applying for Car Finance on a DMP
If you’re on a debt repayment plan, you should take time to consider whether it’s right for you to take on additional debt. Here are some key points to consider first:
Impact on your DMP
Depending on your provider, you might be asked why you need a car. Usually, if you need the car for something essential, such as your job or childcare, it will be fine - but always check first.
Your financial goals
If you are trying to improve your current financial situation, consider whether taking on the extra pressure that comes with car finance is going to harm your future goals.
Your current vehicle
If you already have a car, check whether you could part-exchange it and potentially lower your borrowing amount. Keep in mind that some lenders may not offer this, and it’s not always an option with certain car financing options.
Soft Credit Checks Before Applying
Most lenders will run a soft credit check first when you apply for car finance. This gives them a quick look at your credit report without any impact to your credit score. It gives you an answer to whether or not you’ll be approved before carrying out a full hard search.
Our guide to soft credit checks explains more about what lenders will see at this stage.
Final Thoughts
Getting car finance on a debt management plan can be challenging, but it’s not off the table. As long as you can show stable money management, responsible DMP payments, and room in your budget for monthly car finance costs, some lenders may still consider your application.
At Autodosh, we work with lenders who understand real-life financial situations, including people managing debt or rebuilding their credit. If you want to explore your options and see what you might be eligible for, our lenders could help you.
----
Autodosh is a credit broker, not a lender.
Editorial Disclaimer: This content is for entertainment purposes only. Opinions expressed here are the author’s alone, and not those of any bank, credit card issuer, or any other company. This article has not been reviewed, approved, or otherwise endorsed by any of these organisations. NB: The information on this page does not constitute financial advice, please do your own research to ensure that the product/service is right for your individual circumstances.