iva and new car loans??

mum14cats

Hiya I need some advice. We are two years into our iva and are paying our car loan extra to this.We have been told that when our car loan finishes in april we will have to add that money onto our iva amount. Fair enough. BUT we are using an old wreck of a car and we need a more reliable one for hubby work. Is it possible to get a hp loan for a car while in an iva?? many thanks.

ps. IVA was the best thing we ever did - we can both sleep at night now. xx

jakdaw

Hi, when I started my IVA I was paying a car loan back to my employer, and like you were told that once in ended, the monthly IVA payment would increase by the value of the loan repayment. After paying the increase amount for around 18 months and trying to get by on running bangers, borrowing cars, etc, I spoke to my IP and they allowed me to take out another loan, but I could not decrease my monthly payments.

So it is possible to get permission to have another loan, but not at the expense of the monthly payments.

blue_mum

Hi, I hope you don't mind me asking, but which company did you get a car loan from ? We paid off our IVA in 2007 , only a year after we started it. And this week I have become in need of a new car and have tried to get finance through a car dealer and was declined. I put it down to still having the IVA recorded on my credit file. Any ideas where I may get this finance from?

Cheers Blue

Max_Marley

You must discuss with your IP first. Under the terms of your IVA agreement you are not permitted to undertake further credit. However, if you can put a balanced case to your IP that a new car is essential for your husband's work and therefore his ability to earn to keep paying into the IVA, then it should be looked upon favourably by both your IP and your creditors.

Just be aware that that the terms of your IVA permit you to 'own and run a modest car' so check what is acceptable before purchasing.

Good luck.