Can I get car finance after a DRO has ended?

Yes, some specialist lenders may consider offering car finance after your DRO has ended. However, since the DRO will remain on your credit file for six years, you may face higher interest rates or stricter terms. Credit is subject to status.

How does a DRO affect my credit rating?

A DRO stays on your credit file for six years and can significantly impact your credit score. During this time, lenders may view you as a higher risk, making it harder to secure loans, including car finance.

What steps can I take to improve my chances of car finance after a DRO?

You can improve your chances by checking your credit report for errors, paying bills on time, saving for a larger deposit, considering a guarantor, and only applying for finance you can realistically afford.

Do I need to tell lenders about my DRO?

Yes. While a DRO is active, you're legally required to inform any lender if you want to borrow more than £500. Failing to do so could breach your DRO restrictions and have legal consequences.

Will my DRO be removed from my credit report?

Yes, your DRO will be removed from your credit report six years after it was approved. Once removed, you may find it easier to get credit if you've shown responsible financial behaviour in the meantime.

Can I get car finance with a Debt Relief Order (DRO)?

Q: Can I get car finance with a Debt Relief Order (DRO)

Getting car finance with an active DRO is very unlikely, as you must inform lenders if you borrow over £500. Most lenders won't approve applications during the DRO period, but you may have more options after it's discharged.

Written by Joe Achillies Updated 09 Sep 2025

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If you're dealing with a Debt Relief Order (DRO), you might be wondering whether car finance is an option. While it could be more challenging, it may still be possible depending on your circumstances and there may be steps you can take to improve your chances once your DRO is ended.

At Car Finance 247, we partner with trusted lenders and aim to find car finance options for everyone, even those who have experienced a DRO. But, each lender has their own criteria and credit is subject to status.

To help clear up any questions you might have, here’s everything you need to know about car finance with a Debt Relief Order.

What is a DRO?

A Debt Relief Order (DRO) is designed for people with low income, few assets, and debts under a certain threshold. It freezes your debts for a year, and if your situation hasn’t improved after the year, they’re written off.

However, a DRO stays on your credit file for six years and can severely affect your ability to get car finance and other loans.

DRO eligibility

There is eligibility criteria to consider when applying for a DRO:

You must owe less than £50,000
You have savings or possessions worth less than £2,000
If you own a vehicle, it must be worth less than £4,000
You can’t make your monthly debt repayments
You have lived or worked in England and Wales in the last 3 years
You are not currently bankrupt, have an interim order or an IVA
You have haven’t already had a DRO in the last 6 years

When you’re in a DRO, you’re also not allowed to borrow more than £500 or apply for an overdraft without informing the lender or bank/building society about your DRO first.

How does a DRO affect credit rating?

A DRO can have a serious impact on your credit rating. It stays on your credit file for six years from the approval date. This can make it harder to get loans for car finance, mortgages, and even phone contracts. Lenders will see the DRO on your file as a warning that you have had serious financial difficulties and may be a risk to lend to.

But, once the six years are up, the DRO will be removed from your file, and you can start improving your credit score by keeping up with payments and using credit responsibly.

Car finance with a Debt Relief Order

Can I get car finance with a DRO?

Getting car finance with a Debt Relief Order might be possible, but isn’t guaranteed. While the DRO is active, you’re not allowed to take out more than £500 in credit without telling the lender, and most lenders won’t be willing to lend to you with a DRO in place.

But, once the 12-month DRO period ends and your debts are written off, you may have more options. Lenders will see the DRO on your credit file for six years. Some specialist finance providers might still look at your application if you show financial responsibility. Credit is subject to status.

Can I get car finance after a DRO?

Some specialist lenders may be able to offer car finance after a DRO. At Car Finance 247, we work with lenders who specialise in bad credit car finance and may be able to find you a deal, even if you’ve had a DRO in the past, are on a DMP or you’ve been refused car finance elsewhere because of other financial challenges.

Even if your credit history includes a DRO, some lenders may consider other financial factors like your current income, employment status, and monthly expenses. However, it’s important to note that, as your credit score will be affected by a DRO, you may have to pay higher interest rates. Credit is subject to status.

Tips to improve your chances of getting car finance after a DRO

Once your DRO is discharged (after 12 months), you can work on improving your credit score, and showing financial responsibility. This may help boost your chances of approval from lenders. Before applying, you could:

Check your credit file for errors and keep it up to date
Stay on top of bills and other credit repayments
Save for a larger up-front deposit
Consider using a guarantor
Only apply for finance you can realistically afford

There’s no guarantee of approval, but doing these things can help you seem like less of a risk for lenders.

The takeaway

Having a DRO doesn’t automatically disqualify you from getting car finance, especially once it has ended. While it can make things more difficult, there are still options out there, especially if you’ve been discharged and are working to rebuild your credit.

At Car Finance 247, we do not give financial advice, but we’re here to help you explore your options and try to find a deal that works for you. Simply apply online to get started; there’s no obligation, and checking your eligibility won’t affect your credit score. Only if you choose to proceed will a lender conduct a hard search which may impact your credit score.

If you're unsure about getting car finance with a DRO, it may be helpful to speak to a debt charity or an independent financial advisor. They can help you understand your options.

Disclaimer: Car Finance 247 Limited is a broker, not a lender. Finance is subject to status and affordability checks. We do not give financial advice. There is no guarantee of approval, and rates or terms may vary depending on individual circumstances. We recommend speaking to a debt advice charity or financial advisor if you’re unsure about your options.